HOWTO Use Our Tax-Exempt Status
i3 Detroit is a Michigan Non-Profit Corporation which has been given 501c3 tax-exempt status by the IRS. This means that we are exempt from paying certain taxes, including income, sales, use, and property taxes. It also means that entities that donate to us can claim a tax deduction for the value of the things they donate to us.
Not paying sales tax
Instructions for not paying sales tax
- Usually, vendors accept the Michigan Form 3372 (Sales Tax Certification of Exemption). To get one, send the name and address of the vendor to the treasurer. Give at least 48 hours for processing. Always include a copy of the IRS determination letter (see below).
- Sometimes vendors require a proprietary form. Ask for the form and forward it to treasurer. Allow 48 hours for processing.
- You can also ask the store if they have us on file.
When you can avoid paying sales tax
The product must be for i3 use, not resale, nor pass-thru. So paint for painting the Classroom is an acceptable exemption from sales tax. However, vinyl supplies for the Vinyl Zone, which members use and take home, are not. Rule of thumb, if it comes in our door and stays here, OK. If it walks back out the door, Not OK. And no buying for individual members.
Vendors that already know about us
- Home Depot, give them our phone number
- Microcenter, give them our name
Claiming a deduction for donations
We are classified by the IRS as a Public Charity, which means that people can deduct a donation to i3Detroit from their federal income taxes. There are certain rules to watch out for, and tax software is your friend. Email the treasurer if you want more information. Remember all donations of equipment are subject to being accepted by the Coordinator of the intended zone, or by the Board for non-zone items. Do not just drop things off.