PA Non-Profits Now Have Online Tool to Apply for Sales Tax Exemption 

PA Non-Profits Now Have Online Tool to Apply for Sales Tax Exemption 

DOR Streamlines Tax Exemption Process Following Governor Shapiro’s Executive Order Directing Agencies to Review Licensing, Permitting, and Certification Processes; Previously Only Paper Applications Were Available 

Harrisburg, PA October 6, 2023 − There is a new online filing option available for non-profits, such as charitable and volunteer organizations, to apply for and renew a Pennsylvania sales tax exemption. The Department of Revenue recently launched this online application on myPATH to deliver a new, streamlined tool for its customers. 

The successful completion of this project comes after Governor Josh Shapiro earlier this year signed an executive order that called on Commonwealth agencies to conduct a comprehensive review of their application processes. The purpose of the Governor’s executive order is to improve the Commonwealth’s licensing, permitting, and certification processes for all Pennsylvania workers and businesses. 

“We are proud to play a part in carrying out Governor Shapiro’s vision of offering services that are more efficient and effective for the people we serve,” Revenue Secretary Pat Browne said. “Providing a new online application for sales tax exemptions gives non-profit organizations a streamlined process to secure their exemption certificates as quickly as possible and renew their exemptions when they need to.”

The sales tax exemption allows institutions of purely public charity to avoid paying Pennsylvania’s 6 percent sales tax on purchases made on behalf of the institution’s charitable purpose. 

Prior to the launch of the online application, non-profit organizations were required to submit a paper application form (called the REV-72). The paper-based process resulted in a lengthy turnaround time, due in part to the volume of applications that were received and the detailed supporting documentation that was required to verify each organization’s non-profit status. The paper-based process often resulted in incomplete applications, which required the Department to request additional information from the applicants. As a result, processing was often delayed as the Department waited to receive this information. 

“Now that all of the information can be uploaded online, we have a more efficient application process that also allows non-profit organizations to view the status of their applications in real time,” Secretary Browne said. “This is exactly the kind of improvement that Governor Shapiro is looking for to provide the customer service that everyone in Pennsylvania can count on.”  

myPATH a Resource for Customers 

The online sales tax exemption application is the latest customer service option to be added to myPATH, the online tax system the Department of Revenue launched in recent years to offer improved online services for its customers. The system is now the online destination where Pennsylvania taxpayers can manage the vast majority of their state tax obligations, whether it’s filing tax returns, making payments, or managing their accounts. 

Under the leadership of Secretary Browne, the Department of Revenue also has delivered for its customers during the most recent tax season. To date, the agency has processed more than 6.1 million personal income tax returns and 1.5 million income tax refund requests totaling $338 million. Additionally, the agency has processed more than 359,000 rebate applications for the Property Tax/Rent Rebate program, helping older Pennsylvanians and others with disabilities secure nearly $162 million in rebates on property taxes and rent paid during 2022. 

Meanwhile, the Department recently made progress in decreasing the average wait time while also increasing the volume of calls answered for people who call the agency’s main call center.