Some neighborhood association may want to take the additional step of becoming sales tax exempt.

This is a separate process and status than 501(c)(3). Federal 501(c)(3) status is granted by the Internal Revenue Service (IRS) to non-profit organizations. This status allows organizations to be exempt from paying federal income tax and allows donors to make tax-deductible contributions. On the other hand, being sales tax exempt in Missouri refers to an organization's eligibility to not pay sales tax on purchases made in the state. Obtaining sales tax exemption can help your neighborhood avoid additional costs.¹

The Form 1746, the application for Sales Tax Exemption, can be filled out on the Missouri Department of Revenue website.

1. Missouri Department of Revenu, “Missouri Sales and Use Tax Exemptions and Exclusions from Tax,” DOR.MO, n.d., https://dor.mo.gov/taxation/business/tax-types/sales-use/exemptions.php.