Exemption Certificate or State ID number

I am a professional tax preparer and I can tell you that not all non-profit corporations are necessarily tax-exempt. Also, an organization can be exempt from federal tax but not be exempt from state tax. Also, an organization can be exempt from income tax (federal, state, or both) and not be exempt from sales and use tax (which sounds like the type of tax you are referring to if it's on your utility bill).

I am not familiar with the tax laws in Nebraska, but in many states to be exempt from sales and use tax requires that the organization either be purchasing goods for resale, or that the organization be a charitable, 501(c)(3) organization. Being simply non-profit is not enough in many states.

I would expect that if you have a certificate that enables you to purchase goods exempt from sales tax, then you should also be able to use that same certificate to purchase other services, such as utilities, exempt from sales tax.

If the utility company is requesting a tax ID number that begins with 05-, that appears to me to be an IRS EIN which would be your corporate EIN.

I am curious as to just how your HOA is organized and to how you have justified your tax-exempt status.

Federal and state tax laws are very complicated and easily misunderstood by the average citizen. That's what provides job security for those who are professional tax preparers.

Bruce,

Thanks for you reply. After I posted my question, I did a little more research and we may not be exempt for the taxes.

The bill I was referring to was our Metropolitan Utilties District bill (MUD) or heat and water bill.

I was getting really excited when I thought we could save $50.00 a month on taxes, but I guess I got too excited too soon. I will need to check further itno this.

Thanks so much for your advise. It is a great help.

Typically there are two nonprofits. Charitable/church/etc AND....... not-for-profits. Your HOA is a not-for-profit, so it wouldn't be able to take advantage of the same tax benefits.