Sales Tax Exemption
Laws vary from state to state regarding whether a club may use the Association’s tax-exempt status in order to be exempt from paying sales tax. Several of our clubs/affiliates reside in states that do not provide this exemption, so please consult your professional advisors for the rules in your state.
In Michigan, clubs/affiliates eligible to use the Association’s tax-exempt status need not pay sales tax on purchases and vendor-provided services (e.g., meals in a country club). For sales tax to be waived, you should be prepared to provide the vendor or merchant (1) your letter of Association affiliation and (2) the Association’s exemption letter from the IRS.