Business Office

Sales Tax Exemption - Pennsylvania

Applicable Forms and Guides

	Pennsylvania Exemption Certificate (PA REV-1220) [1,780 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
	Pennsylvania Sales and Use Tax Certificate of Exemption (PA REVK-265) [2,638 KB] - This is a copy of our current sales and use tax exemption, it is like a license
	Pennsylvania Petition Form – Board of Appeals (PA REV-65) [20 kb] – This is a copy of the form need to petition the Board of Appeals to refund sales taxes paid in error.
	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 Commonwealth of Pennsylvania has a very complicated sales tax exemption statute with many exceptions and nuances. That being said, it is always best to check with the business office if you are unsure as to whether the exemption from sales tax is valid. In general terms (Pa. Code Title 61 §32.21) "the exemption shall 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 Commonwealth of Pennsylvania.

• Vehicle Rentals – many states treat sales tax associated with the short-term rental of vehicles separately from general sales tax. In the Commonwealth of Pennsylvania 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 Commonwealth of Pennsylvania we are Not Exempt from Sales Tax on lodging.
• Food – In the Commonwealth of Pennsylvania we are Exempt from Sales Tax on the purchase of food for consumption.
• Alcohol – In the Commonwealth of Pennsylvania we are Exempt from Sales Tax on the purchase of alcohol.
• Goods – In the Commonwealth of Pennsylvania we are Exempt from Sales Tax on the purchase of most goods.
• Services – In the Commonwealth of Pennsylvania 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.
• Real Estate – the purchase of materials, supplies, and equipment used and installed in the construction, reconstruction, remodeling, repair and maintenance of any real estate so as to become a permanent part thereof shall be taxable. (e.g. lawn mowers, snow blowers, etc.)

Contact the Pennsylvania Department of Revenue :

Commonwealth of Pennsylvania
Department of Revenue
Bureau of Business Trust Fund Taxes
Department 280904
Harrisburg, PA 17128-0904
Phone: (717) 787-1064

Local office of the Department of Revenue
Phone: (814) 871-4491

Get more information by visiting the Commonwealth of Pennsylvania, Department of Revenue website

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