Business Office

Sales Tax Exemption - Massachusetts

Applicable Forms and Guides

	Massachusetts Exemption Certificate (ST-5) [1,598 kb] - This is a fill-in form that you would complete and provide to a vendor to evidence and claim that Mercyhurst College is exempt from sales tax. Please note: this form MUST be signed and dated by a Mercyhurst College official to be valid.
	Massachusetts Sales and Use Tax Certificate of Exemption (ST-2) [113 kb] – This is a copy of our current sales and use tax exemption, it is like a license.
	Internal Revenue Service – Determination Letter [1,671 kb] – This is a copy of our current IRS determination letter which evidences Mercyhurst College as a non-profit organization under Section 501(c)(3) of the Internal Revenue Code.

Categories of Tax and Related Exemptions

The State of Massachusetts, in general, allows for an exemption to apply to the purchase and use of tangible personal property or services used in an activity which bears a reasonable relationship to purpose for which the exempt organization exists.

There are generally 5 categories of expenditures to which sales tax exemptions do or don't apply. Those categories are listed with specific information relating to the State of Massachusetts.

• Vehicle Rentals – many states treat sales tax associated with the short-term rental of vehicles separately from general sales tax. In the State of Massachusetts we are Exempt from Sales Tax on the rental of vehicles so long as the vehicle is rented in the name of the College. The practice of renting the vehicle in the name of the College is also wise from an insurance coverage perspective.
• Hotel / Occupancy Tax – many states treat sales tax associated with the short-term lodging separately from general sales tax. In the State of Massachusetts we are Exempt from Sales Tax on lodging.
• Food – In the State of Massachusetts we are Exempt from Sales Tax on the purchase of food for consumption.
• Goods – In the State of Massachusetts we are Exempt from Sales Tax on the purchase of most goods.
• Services – In the State of Massachusetts we are Exempt from Sales Tax on the purchase of most services.

Exemption Exceptions (i.e., taxable purchases) :

• Unrelated Purpose – the purchase and use of tangible personal property or services which bears no reasonable relationship to purpose for which the exempt organization exists or is used in any unrelated trade or business.

Contact the Massachusetts Department of Taxation :

Massachusetts Department of Revenue
Bureau of Desk Audit
Exempt Organization Unit
200 Arlington Street
Chelsea, MA 02150
Phone: (617) 887-6970

Get more information by visiting the State of Massachusetts, Department of Taxation website

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