Okay, how does this work in practice? My 501-c-3 secretary goes down to Office Max to buy a stapler. She can't exactly say: "Don't let the register ring up sales tax, we're a 501".
Do you keep all those sales receipts and file a tax form with the state at the end of the year, asking for a rebate? Same for your gas pump receipts and the Fed and State taxes there?
You bring a copy of a letter from your organization's accountant/lawyer advising that "The Non-Profit Group X is an exempt organization within the meaning of the Chicago Sales Tax...All purchases or rentals made by The Non-Profit Group X are exempt from taxes under the provisions of the Illinois Retailers' Occupation Tax Act, the Illinois Service Tax Act... ect." This letter also includes a copy of the tax exemption number issued by your state's Department of Revenue.
In my experience at OfficeMax (yes, I've done this at OfficeMax), the checkout clerk gawks at it, and probably calls over their supervisor. Then they ring the tax off of your purchase.
Apparently being a non-profit isn't enough for some states to allow an exemption. Harvard would have to pay sales taxes in several states.
This is true... as a 501 -c-3, the tax is exempt.. the rule is what you have purchase can't be resold.
I'ts to bad wiki media foundation can't be called to task for it's volitions of 501 c-3 as regards to Political campaigning. ( see and compare the Obama wiki entry vers The McCain one... look at the editing history and see if a case can be made)