Why does the DFOA collect sales tax?
The Denver Football Officials Association is a registered business with the State of Colorado and City of Aurora. Occasionally, we sell items to our members and the general public for fundraising events. Like any other business in Colorado, we are required to collect and remit sales tax for any retail sale.
I thought the DFOA was tax exempt as a 501(c)(3)?
The DFOA is exempt from paying sales tax on goods and services we purchase for use as a non-profit, however, we are NOT exempt from collecting sales tax on retail sales we make to our members or the general public. This article, published by the Colorado Non-profit Association, will clarify our obligations and requirements if you have additional questions:
https://www.coloradononprofits.org/knowledge/faq/what-do-nonprofits-need-know-about-sales-tax
Is there a sales tax "holiday" for non-profits?
Sort of… In Colorado, if a non-profit sells retail items for LESS than 12 calendar days AND net proceeds are less than $25,000 from the fundraising event, the organization could be exempt from charging / remitting tax on fundraising related sales. In the past, DFOA has run fundraising promotions longer than 12 calendar days (i.e. sale of logo golf shirts). Therefore, we are required by law to collect and remit sales taxes to the State of Colorado and City of Aurora on these transactions.
DFOA has to collect Aurora city taxes too?
Aurora, where the DFOA is legally registered, is a “home rule city”. This means we have to pay the city directly for sales taxes collected in the same manner as the State of Colorado. Tax information and guidelines for the City of Aurora can be found here:
Aurora Licensing & Taxation: https://www.auroragov.org/business_services/taxes/sales_tax
Why is the DFOA address is different on the Aurora city license?
The legal mailing address for DFOA is a “virtual” address where we can send and receive US mail. The City of Aurora requires a physical location, within the city limits, to obtain a business and tax license. Therefore, we have used the CHSAA office (with their permission) as our “physical location” in Aurora. The best address to reach DFOA for correspondence is the Mississippi Ave location listed on this website.