§305.70. Exemption; sale of toys to certain nonprofit organization

            A. The sale of toys to a nonprofit organization exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code shall be exempt from sales and use taxes imposed or levied by the state or any political subdivision of the state if the sole purpose of the purchasing organization is to donate toys to minors and the toys are, in fact, donated.

            B. The exemption provided for in Subsection A of this Section shall not apply if the donation is intended to ultimately yield a profit to a promoter of the organization or to any individual contracted to provide services or equipment, or both, to the organization.

            C. Each nonprofit organization electing to utilize the exemption provided for in this Section shall apply annually for a one-year exemption certificate. The secretary of the Department of Revenue shall promulgate rules and regulations in accordance with the Administrative Procedure Act as are necessary to implement the provisions of this Section including rules for the use of annual certificates and shall establish a form for nonprofit organization to apply for this exemption.

            Acts 2011, No. 387, §1, eff. July 1, 2012; Acts 2024, 3rd Ex. Sess., No. 11, §2, eff. Dec. 4, 2024.