County-level Considerations
Incorporated nonprofits are not usually required to pay county taxes, though this of course depends upon the local area. Some counties require individuals and businesses to pay a temporary county tax used to provisionally fund school bonds or county roads. Incorporation at the state level is usually all a nonprofit needs to verify that it is exempt from county taxes.
City-level Concerns
Many cities have a local sales tax, but nonprofits that incorporate generally are not liable for these taxes once the application to the IRS is in the mail. The NPO is question may keep copies of the forms sent to the IRS as proof of application. A photocopy of the dated endorsement page is typically all that is needed to corroborate city tax exemption. The local area’s city hall should be able to provide the NPO with the correct forms to file for exemption at the local level. Many towns also have this information publicly available through the internet.
