Brookfield, CT asked in Energy, Oil and Gas and Tax Law

Q: Do 501(c)(3) Corps have to pay tax on Propane Gas? See CERT-115. We are a Vol Fire Co.

I'm the Asst. Treasurer of the Brookfield Volunteer Fire Company, Inc., a 501(c)(3) certified organization. We noticed tax on an invoice for propane from Norbert E. Mitchell (our supplier.) They said, "you are not exempt from the CT - LP- Gross Receipts Tax". Is this true, and if so, are there any other taxes we are not exempt from?

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2 Lawyer Answers

A: You are confusing your federal tax-filing status with state sales taxes imposed on most if not all corporations. Just because the FEDERAL IRS has given you tax-free status does not make you exempt for state sales taxes. If it did there would be zillions of 501s out there.

A: The State of Connecticut does allow exemptions for sales and use tax for 501c3 organizations. I did a quick search to see if the exemption applies to the gross receipts tax but could not find anything. I suggest calling the State of Connecticut Department of Revenue Services and ask them. They should be able to provide you with more detailed information regarding the exemption.

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