Tax Information for Student Organizations

Income Tax

Student organizations are not automatically tax exempt under Michigan Tech’s tax-exempt number. To be tax exempt, the organization must apply and be granted tax-exempt status from the Internal Revenue Service.

A student organization may refer to IRS Publication 557 if it believes it may qualify for an exemption from income tax. The publication also details how to qualify and apply for tax-exempt status.

If a student organization decides to apply for tax-exempt status, it will need its own federal taxpayer identification number, i.e., Employee Identification Number (EIN). IRS Form SS-4 is used to obtain an EIN.

Please Note: Organizations with national affiliation should check with the national organization to see if they fall under the national tax-exempt status.

Sales Tax

Student organizations are liable for collection and remittance of taxes on sales and rentals involving non-exempt transactions. Generally, sales tax applies to sales of personal property to consumers in Michigan. Examples include candy, t-shirts, hats, etc.

Please Note: Organizations exempt from payment of taxes on purchases are not exempt from payment of taxes on revenue collected from sales or rentals.

Student organizations may qualify for exemption from Michigan Sales Tax on purchases. See Common Sales and Use Tax Exemptions and Requirements on the Michigan Department of Treasury’s website.