A. PTA/PTOs or
OTHER SCHOOL ORGANIZATIONS. A PTA/PTO or other school organization that
conducts fundraising activities must pay tax on purchases for resale but does
not have to collect tax on the sales of the items. However, if the vendor
provides order forms that are distributed to the students and the students take
orders for the vendor, the vendor is responsible for sales tax on the sales
made by the students. The students are permitted to collect tax on the vendor's
behalf. However, if the students do not collect the tax for the vendor, the
vendor must remit the total tax due to the state. Tax is due on the gross
receipts received by the students from the purchaser.
B. EXEMPT ORGANIZATIONS. Exempt organizations
may purchase items exempt from tax. For a list of organizations that are
statutorily exempt from tax on their purchases, see GR-31. Exempt organizations
are not specifically exempt from tax on sales made by the organizations. An
exempt organization that operates as an established business is required to
collect tax on its sales.
CHARITABLE NONPROFIT ORGANIZATIONS. Charitable organizations that are not
engaged in business for profit are not generally required to collect tax on
sales made by the charitable organization. However, if a charitable
organization makes sales of new tangible personal property and competes with
sales by for-profit businesses, then the sales by the charitable organization
are taxable. See GR-39(C) for information regarding whether sales are
considered to compete with those of for-profit businesses.