Section 501(c)(3) is the section of the federal Tax Code that describes tax-exempt charities. You do not get a 501(c)(3) from the state. You may be incorporated as a nonprofit corporation in the state, but incorporation alone does not mean that you are exempt from state sales taxes such as those charged on hotel bills and other purchases of goods or services. You have to apply separately to the state for the state exemption. If approved, most states provide a special certificate confirming that exempt status. 

 

Standards for exemption vary by state and just because you have a (c)(3) status from the IRS does not necessarily mean you will qualify for state exemption. (See Ready Reference Page; “Act 55 Defines 'Charity' Eligible for PA Exemption.”)

 

In addition, even if you have a separate sales tax exemption in your home state, that may not be honored if you want to book a hotel event in another state.  You may have to get a separate exemption in the other state to avoid the sales tax there.