I'm going to share a little story I just heard from one of the places with which I do work with. Specific details have been changed to protect the innocent, but the story is true.

A long-established non-profit museum operation received a visit from a local official recently. He asked, among other things, "Can I see your business license?"
Ummmm......... what?
"Your business license. You run a business here, with admissions and a gift shop. You need a license."
Ummmm..... Museum officials are consulted and called. No one is aware of one.
"And you've been here HOW long?"
"[over thirty years]".....
"So that's $150 times [over thirty], plus penalties...."
"Now, wait a minute..... in [more than thirty] years, this is the first anyone from the county has ever approached us about it! In all this time we've had county officials, city officials, and state officials here for events. The county tourist promotion board knows about us. And we are partially on land and one building owned by the county that we lease from you. And you're only NOW telling us to get a license?"

I was told that, ultimately, they compromised to simply pay for a license for the remainder of the year, and renew every year thereafter.

So, in case any of you are under revenue-hunting officials that may be hungrily looking for revenue and may not be so sympathetic--got your business license/occupancy pernit/whatever in order?

I have seen a non-profit pursued for a business license when the law did not actually require one for non-profits in that particular situation. Fortunately a member-lawyer knew the law and could cite the exemption.

I have also seen a conference with vendors present for just the weekend at the event, and the County required them to get a business license. The same annual event in a different venue, same county, was under the radar, no license needed.

If you are having outside vendors at a special event, that might apply to them. You want to find out in advance to avoid them being shutdown or other unpleasantness.

-Mark

What hasn't been said is whether the museum was keeping it's 501c3 status current by filing 990's on a timely basis, keeping it's status as a corporation valid by filing whatever is required by the state they operate in, whether they had a sales tax license (if required) etc etc.

Bob H

As far as I know/have been told: yes, yes, and yes-I've-laid-eyes-on-it........