The Texas AP 209 form is an application used by nonprofit religious organizations to request exemptions from various Texas taxes, including sales tax, hotel occupancy tax, and franchise tax. To qualify, organizations must meet specific criteria outlined in Texas law, demonstrating that they are established groups conducting regular religious services. If your organization meets these requirements, consider filling out the form by clicking the button below.
When filling out the Texas AP 209 form, there are several important considerations to keep in mind. Here is a list of things you should and shouldn't do to ensure a smooth application process.
By following these guidelines, you can help ensure that your application for tax exemption is processed efficiently and effectively. Should you have any questions or need further assistance, consider reaching out to the appropriate tax assistance staff for support.
APPLICATION FOR EXEMPTION
RELIGIOUS AND RELIGION BASED ORGANIZATION
CAROLE KEETON STRAYHORN • TEXAS COMPTROLLER OF PUBLIC ACCOUNTS
Nonprofit religious organizations should use this application to request exemption from Texas sales tax, hotel occupancy tax, and franchise tax, if applicable. To receive a state tax exemption as a religious organization, a nonprofit religious organization must be an organized group of people regularly meeting at a particular location with an established congregation for the primary purpose of holding, conducting and sponsoring religious worship services according to the rites of their sect. Exemption from federal tax is not required to qualify for exemption from state tax as a religious organization.
The exemption for religious organizations is provided for in Sections 151.310, 156.102, and 171.058 of the Texas Tax Code, and more detailed information can be found in Comptroller’s Rules 3.322, 3.161, and 3.541.
Some organizations will not qualify for exemption as a religious organization as that term is defined in Texas' law and rules, even though their activities may be religious in nature. Evangelistic associations do not qualify for exemption as religious organizations. Organizations that simply support and encourage religion as an incidental purpose, or that further religious work or teach their membership religious understanding, such as Bible study groups, prayer groups, and revivals do not qualify for exempt status under this category. Such an organization might still qualify for exemption from Texas sales taxes, and franchise tax, if applicable, based on their exemption under certain sections of the Internal Revenue Code (IRC).
Texas tax law provides an exemption from sales taxes on goods and services purchased for use by organizations exempt under IRC Section 501(c)(3), (4), (8), (10), or (19). However, exempt organizations are required to collect tax on most of their sales of taxable items. See Exempt Organizations–Sales and Purchases, Publication 96-122. Texas law also provides an exemption from franchise taxes for corporations exempted from the federal income tax under IRC Section 501(c)(2), (3), (4), (5), (6), (7), (8), (10), (16), (19), or (25).
If your organization has been granted federal tax exemption under one of the qualifying sections listed above, your organization will be granted an exemption from Texas sales tax, or sales and franchise tax, on the basis of the IRS exemption, as required by state law. Organizations that qualify for exemption based on a federal exemption are not exempt from hotel occupancy tax because the hotel tax law does not recognize any federal exemptions.
The laws, rules and other information about exemptions are online at:
http://www.window.state.tx.us/taxinfo/exempt
Send the completed application along with all required documentation to:
COMPTROLLER OF PUBLIC ACCOUNTS
Exempt Organizations Section
P.O. Box 13528
Austin, Texas 78711-3528
We will contact you within 10 working days after receipt of your application to let you know the status of your applica- tion. We may require an organization to furnish additional information to establish the claimed exemption. After a review of the material, we will inform the organization in writing if it qualifies for exemption. The comptroller or an authorized representative of the comptroller may audit the records of an organization at any time during regular busi- ness hours to verify the validity of the organization’s exempt status.
If you have questions or need more information, contact our Tax Assistance staff at 1-800-252-5555 or, in Austin, call (512)463-4600.
You have certain rights under Ch. 559, Government Code, to review, request, and correct information we have on file about you. Contact us at the address or toll-free number listed on this form.
AP-209-1 (Rev.3-05/5)
AP-209-2 (Rev.3-05/5)
TEXAS APPLICATION FOR TAX EXEMPTION
FOR RELIGIOUS AND RELIGION-BASED ORGANIZATIONS
SECTION A
1. ORGANIZATION NAME
• TYPE OR PRINT
• Do NOT write in shaded areas.
Page 1
(Legal name as provided in Articles of Incorporation, or, if unincorporated, the governing document. For out-of-state corporations, name must match the official corporate name as filed in the home state of charter)
2. ORGANIZATION MAILING ADDRESS
Street number, P.O. Box, or rural route and box number
CityState/provinceZIP codeCounty (or country, if outside the U.S.)
3. Texas Taxpayer number (if applicable) ................................................................................................................
4. For TEXAS corporations ONLY, filing information issued by the Secretary of State:
File Number ..............................................
Month
Day
Year
File Date .......................................
5. For NON-TEXAS corporations ONLY, filing information issued by the Texas Secretary of State:
Certificate of Authority File Number .............
File Date ...............................
Home State
of Incorporation .......
Date of
Incorporation ...
Home State Filing
or Registration Number .......
6. Federal Employer's Identification Number (EIN) (Required if applying for exemption on the basis of a federal exemption) ......
7.Average attendance
at worship service ................
If average attendance is less than 50, indicate the number
of families represented in the average attendance ...................
8. Date of first worship service ................................................................................................................................................
Time
Frequency
9. Time and frequency of worship services
10. Name, address and daytime phone number of the person submitting this application.
Name
Title
Organization Name
Daytime Phone (Area code and number)
Extension
Address
City
State
Zip
If address provided is not the same as the organization's mailing address, indicate to which address our response should be mailed:
To organization mailing address
To mailing address of submitter
SECTION B
Provide the following additional information as it applies to the appropriate option below:
Option A (Member of a common denomination or convention of churches):
If your organization is a church that is a member of a common denomination or convention of churches, and the parent organization either has a 501(c)(3) federal group exemption, or has previously obtained a religious exemption in Texas for the churches under its jurisdiction, your church can obtain exemption based on its affiliation with the parent organization. Attach a letter from the parent organization stating that your church is a recognized subordinate, or provide the web address of the parent organization where your church's affiliation can be verified.
Option B (Independent church or nondenominational church that does not meet the requirements under Option A):
A copy of your organization’s governing document (file-stamped Articles of Incorporation, or Bylaws or Constitution or Articles of Association if not incorporated)
A copy of your group’s statement of faith.
Documentation such as a bulletin, brochure, Web address (URL) or written statement that indicates the regular order of what takes place during the worship services.
A statement containing the physical address (no P.O. Box) and a description of the facility where worship services are regularly conducted. If available, include pictures of the interior and exterior of the facility. If renting or leasing, include a copy of the rental/lease agreement.
A statement confirming the services are open to the public. The statement must indicate how the services are advertised to the public.
If your church has its own 501(c)(3) federal exemption, provide a copy of the IRS determination letter along with the information in option A or B so that we may update our records.
APPLICATIONS RECEIVED WITHOUT SUPPORTING DOCUMENTATION REQUIRED
UNDER OPTION A OR OPTION B WILL BE RETURNED.
Txdot Prequalified Contractors - Signers acknowledge their right to request and review information collected by the state.
Form 2947 - This form is essential for maintaining a well-trained and aware staff team.
Texas Workers Comp - Legal representation is available, but the form can be filled out by the injured employee or their representative.
The Texas AP 209 form serves as a crucial application for nonprofit religious organizations seeking tax exemptions in Texas. In conjunction with this form, several other documents and forms may be necessary to ensure compliance with state tax laws. Each of these documents plays a specific role in the exemption process and provides essential information about the organization’s structure and activities.
In summary, these documents collectively provide a comprehensive view of the organization’s structure, purpose, and operations. They are instrumental in supporting the Texas AP 209 form and ensuring that the organization meets the necessary criteria for tax exemptions. Proper preparation and submission of these materials can facilitate a smoother application process and help organizations achieve their tax-exempt status.
Filling out the Texas AP 209 form is an important step for religious organizations seeking tax exemptions. However, many applicants make common mistakes that can delay or jeopardize their application. One frequent error is failing to provide the correct legal name of the organization. It is essential to match the name exactly as it appears in the Articles of Incorporation or the governing document. Any discrepancies can lead to immediate rejection of the application.
Another mistake involves the mailing address. Applicants often forget to include complete details, such as the street number, P.O. Box, or rural route. Incomplete addresses can cause issues in communication and delay the processing of the application. Ensuring that the mailing address is accurate and complete is crucial for receiving timely updates.
Many organizations also overlook the requirement for the Federal Employer Identification Number (EIN). This number is mandatory when applying for exemption based on a federal exemption. Without it, the application may be considered incomplete, leading to further complications. Applicants should double-check that they have included this information before submission.
Some applicants mistakenly believe that submitting the application alone is sufficient. However, failure to include supporting documentation is a common pitfall. Whether under Option A or Option B, the required documents must be attached. Applications lacking this documentation will be returned, wasting time and effort.
Moreover, organizations sometimes miscalculate their average attendance at worship services. Providing inaccurate figures can lead to misunderstandings about the organization’s size and impact. It is important to report this information accurately, as it plays a role in determining eligibility for exemption.
Lastly, some applicants neglect to include the contact information of the person submitting the application. This oversight can lead to confusion and delays in communication. Providing a clear point of contact ensures that any questions or issues can be addressed promptly, facilitating a smoother application process.
1. All religious organizations automatically qualify for exemption. This is not true. Only nonprofit religious organizations that meet specific criteria can qualify for tax exemption. The organization must have an established congregation and hold regular worship services.
2. Federal tax exemption guarantees state tax exemption. While having a federal tax exemption can help, it does not automatically grant exemption from state taxes. Each state has its own criteria, and Texas law specifically outlines the requirements.
3. Evangelistic associations qualify for exemption. This is a common misconception. Evangelistic associations do not qualify for exemption as religious organizations under Texas law.
4. Bible study groups automatically qualify for exemption. Bible study groups and similar organizations may support religious activities but do not qualify for exemption as they do not meet the legal definition of a religious organization in Texas.
5. Organizations need to be incorporated to qualify. Unincorporated groups can also qualify for exemption as long as they meet the other requirements set by Texas law.
6. All sales made by exempt organizations are tax-free. Exempt organizations must still collect sales tax on most of their taxable sales. The exemption primarily applies to purchases made for their own use.
7. Hotel occupancy tax exemptions apply to all exempt organizations. This is incorrect. Organizations that qualify for exemption under federal law are not exempt from hotel occupancy tax in Texas.
8. The application process is quick and easy. While the application may seem straightforward, it requires detailed documentation. Missing documents can lead to delays or rejection of the application.
9. Once exempt, organizations never have to prove their status again. This is misleading. The comptroller may audit an organization at any time to verify its exempt status, so maintaining accurate records is essential.
10. Only large organizations can qualify for exemption. Size does not determine eligibility. Small congregations can qualify as long as they meet the legal requirements for religious organizations in Texas.
Here are some important points to consider when filling out and using the Texas AP 209 form for tax exemption for religious organizations:
Understanding these key points can help ensure a smoother application process for tax exemption under Texas law.
Completing the Texas AP 209 form is an important step for nonprofit religious organizations seeking tax exemption. This process involves providing specific information about your organization, its activities, and its structure. Below are the detailed steps to guide you through filling out the form accurately.
Next, move on to Section B, where you will provide additional information based on your organization’s status. Depending on whether you are affiliated with a common denomination or are an independent church, you will need to gather specific documentation. Ensure you have all necessary documents ready to avoid delays in processing your application.