The Board of Directors is pleased to announce that after ten months of waiting the Central Roadracing Association received approval by the IRS as a 501(c)(7) tax-exempt club.

What does this mean?

The chief benefit for the CRA to have 501(c)(7) tax-exempt status is we will not pay federal taxes on our day-to-day activities.

How does this affect the membership?

Although the 501(c)(7) approval qualifies the CRA as a tax-exempt club through the IRS, unfortunately the Minnesota Department of Revenue reserves sales tax exemption exclusively for charitable, religious or educational purposes that has obtained exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code and does not recognize adult sports clubs to be sales tax exempt. With that, we will continue to collect sales and use tax for races, membership, and everything purchased through the CRA.

We understand this news may cause confusion and disappointment for membership, however, this is a significant step in ensuring the CRA future for generations to come.

If you have any questions, please email me at treasurer@cra-mn.com

Thanks,

Anna