Section 2.1 Tax Exemptions
State Sales Tax
University of Maine Cooperative Extension is exempt from Maine state sales tax under 36 MRSA A 1769 of the Sales and Use Tax Law, as an instrumentality of the State of Maine. This allows UMaine Extension to make purchases tax free in the State of Maine when they are to be used in the conduct of Extension educational programs. Individual 4-H leaders, homemakers, volunteers, and clubs are not sales tax exempt. To take advantage of the sales tax exemption, purchases must be made by the County Extension office.
County Extension Associations
County Extension associations, as agencies of the county, may make purchases tax free within the State of Maine. HOWEVER, it is important that the correct EIN (Employer Identification Number) is used as documentation for tax exempt purchases. When county funds are being spent, the only EIN that can be used is the number associated with the tax exempt status of the county government that supplied the funds. To find out the correct number, contact your county government office. It is not appropriate to use the University of Maine EIN for purchases made with county funds.
4-H leader associations are exempt from collecting Maine state sales tax on fund-raising efforts of a limited duration. If a sale, such as a county fair food booth, is an ongoing fund-raising effort or if the club or association “continuously holds itself out to the public as a seller,” the association must register for seasonal reporting of Maine sales tax and payments must be made once a year to the State Sales Tax Division of the Maine Bureau of Taxation. For the appropriate registration form, contact the Maine State Sales Tax Division.
Should any questions arise, contact the UMaine Extension Financial Administrator.
Federal Income Tax
Any organization authorized by UMaine Extension to use the 4-H name and emblem in order to further 4-H objectives and projects has federal income tax exempt status. Such organizations include local 4-H clubs; county, regional or state 4-H camps and training centers.
Even though exempt from federal income taxes, 4-H organizations authorized by Extension to use the 4-H name and emblem are required by the IRS to apply for an Employee Identification Number (EIN) and file an annual notice, the 990N, electronically. Further information is available online in Section B.1.9 of Extension’s 4-H Policies, Procedures, and Guidelines.