Change in Wisconsin Sales Tax for Non-Profits

Recently we heard from the Wisconsin Department of Revenue that it was not appropriate for RunSignup to allow an exemption from sales tax for nonprofit organizations (including government entities). They provided a Wisconsin Department of Revenue Marketplace Provider Common Questions guide. Item 20 in the guide states the following:

Is a marketplace provider required to collect and remit tax on sales facilitated on behalf of a nonprofit organization that qualifies for the occasional sales exemption?

Yes. The marketplace provider is required to collect and remit Wisconsin sales or use tax on taxable sales it facilitates on behalf of a nonprofit organization. Although the nonprofit organization’s own sales may be an exempt occasional sale under sec. 77.54(7m), Wis. Stats., and sec. Tax 11.555(6)(e), Wis. Adm. Code., the exemption does not apply or extend to the marketplace provider.”

We will be updating the RunSignup sales tax setup menu to remove the exemption for non-profit organizations for Wisconsin sales. Effective immediately, sales in Wisconsin for nonprofit organizations will follow the normal Wisconsin sales tax rules. 

RunSignup calculates, collects, reports on and remits sales tax on behalf of races in Marketplace states, as required by law. That means you don’t even need a calculator to stay in compliance. You can find more about how sales tax works in marketplace states here.

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