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BTLG Table of Contents > Sales and Use Tax Annotations > N > 390.0000 Nonprofit Organizations > Annotation 390.0085

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N

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390.0000 Nonprofit Organizations

Annotation 390.0085

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390.0085 Gift of Ribbons. A nonprofit organization engaged in research to find a cure for AIDS receives red ribbons (bows) donated by a supporter. The supporter pays the sales tax on the materials and assembles the ribbons. The organization gives the ribbons to contributors but will also give the ribbons away to anyone, without receiving a contribution. Since the organization does not purchase the ribbons, there is no basis for a use tax liability. In addition, since the giving of the ribbons is not dependent on the receiving of a donation, they are not considered sales and there is no sales tax liability. 2/8/93.