Recently Asked Questions

A local artist has asked for us to become a fiscal sponsor (act as a “pass-through” organization). Is this something a public library can do?

I found some information that may indicate that association libraries which charge patrons for faxes should collect sales tax.

This publication is the source of my inquiry: https://www.tax.ny.gov/pdf/publications/sales/pub843.pdf

On page 25, under "Sales and Utility Services" there is mention of telephony and a reference to section 1105(b) of the Tax Law. The section of the law specifically mentions facsimile services, but only intrastate transmissions would be taxable.

However, page 6 states: "Agencies and instrumentalities include any authority, commission, or independent board created by an act of the New York State Legislature for a public purpose".

Examples of "agencies and instrumentalities" include:
          • NYS Department of Taxation and Finance
          • NYS Department of Education
          • Association of Fire Districts of New York State
          • Nassau County Village Officials Association

Since association libraries are chartered by NYS Dept. of Education, I wondered if association libraries would be exempt from collecting sales tax on faxes.

Thank you in advance for clarifying whether association libraries are exempt from collecting sales tax on faxes.

I work at a special district public library, and we are not currently a 501(c)(3). Everyone I've asked from co-workers to administration to board members says no, we aren't eligible, but no one can answer *why* we wouldn't be eligible. First, we pretty explicitly meet the exempt purposes set forth in section 501(c)(3). Also, I have worked at different types of public libraries that have been 501(c)(3)'s. Based on my reading of the IRS's eligibility requirements and state education law, the important part as far as the IRS is concerned is the structure and authority of an organization's charter. The Board of Regents is responsible for chartering public libraries in the state, so why should it matter what type of library results from the charter? However, IANAL, so I may be misunderstanding or missing something important. That's where you come in!