Maryland Tax Exemption For Non-Profit Organizations
INFORMATION ON MARYLAND TAX EXEMPTION FOR NON-PROFIT ORGANIZATIONS
How Do I Apply For Tax Exempt Status?
You can start by applying to become tax exempt federally. You do this by filing for 501c3 status with the IRS. The review process will be rigorous. If your MD non-profit is granted tax exemption, the IRS will send you a Letter of Determination.
How do I receive state tax exemption for my non-profit in Maryland?
Once you receive your Letter of Determination from the IRS you can apply for state income tax exemption in MD.
Who do I contact about state tax exemption?
The Comptroller of the Treasury is the state agency that is responsible for acknowledging your exemption from Maryland income tax.
How do I apply for state income tax exemption?
Submit these documents to the Legal Department of the Revenue Administration Division:
- A request for exemption from Maryland income tax
- An explanation of the nature, purpose, and scope of your non-profit organization in Maryland
- A copy of your non-profit’s IRS tax determination letter
- A copy of your non-profit’s bylaws
- A copy of the latest financial statement of your non-profit organization
What happens next?
When or if your request for exemption has been granted, you will not need to file any income tax returns with the Comptroller unless your MD non-profit organization files an IRS Form 990-T (your non-profit will have only filled this out if you have unrelated business income).
How long will it take to approve my request?
The IRS typically takes at least six months to review your documents and allow two months for Maryland.
Where do I send my request for Maryland income tax exemption?
ATTN: Legal Department
Comptroller of the Treasury
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411
Am I able to attain sales and use tax exemption in Maryland?
Certain non-profit charitable organizations are able to be granted tax exempt status for sales and use taxes. The Comptroller of the Treasury is the one who grants this exemption. You will have to request exemption.
How do I request Maryland sales and use tax exemption?
Your non-profit must have the letter of determination from the IRS stating that your organization is exempt under 501(c)(3) status. You will also have to fill out Form 2001, the Combined Registration Application form.
How do I fill out the Combined Registration Form?
You are able to get the form from the Comptroller of the Treasury website. On pages 5-7 of the form are detailed instructions you should follow to make sure that you properly fill out the form. You will send it to:
Comptroller of Maryland
Revenue Administration Center
110 Carroll Street
Annapolis, MD 21411-0001
Are there any other state taxes I can apply to be exempt from?
You can apply to be exempt from Maryland property tax as well. Once this tax exemption is granted, it applies for the duration of your non-profit’s life unless it is revoked. You will need your letter of determination from the IRS in order to apply for this exemption. Based on the type of organization, there are different standards used to review property tax exemption.
How do I become property tax exempt in Maryland?
You will need an application form. In order to get this form you can contact the Assessment Office in the county in which your non-profit resides, or you can consult the Maryland Department of Assessments and Taxation website for the contact information for each county.
Maryland Charity Registration
501(c)3 Tax Exempt Status
Maryland Registered Agent
This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.
This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation.