Rule 24.
(1)
Sales, not for resale, to regularly organized educational institutions not
operated for profit are not taxable. "Not operated for profit," as used in this
rule, means operated by an entity of government, a regularly organized church,
religious or fraternal organization, where the income from the operation does
not inure, in whole or in part, to the benefit of individuals or private
shareholders, directly or indirectly, and where the activities of the entity
are carried on exclusively for the benefit of the public at large and are not
limited to the advantage, interests, or benefits of its members or a restricted
group. "Educational institution," as used in this rule, means an institution of
learning, organized solely for educational purposes, which maintains a faculty
of qualified instructors, and teaches regular, continuous courses of study, and
which confers upon students a recognized diploma after completion of a specific
curriculum.
(2) Sales of athletic
equipment to a regularly organized educational institution for consumption or
use are not taxable if the athletic activities are under the management and
control of the educational institution and the entire receipts are expended for
athletic or educational purposes.
(3) Educational institutions which are not
operated for profit, and which operate lunchrooms, cafeterias, or dining rooms
for the exclusive use of bona fide enrolled students, are not taxable. Whenever
such a lunchroom, school cafeteria, or dining room sells to nonstudents,
including teachers, the institution operating it is subject to the tax on those
sales.
(4) Sales of class pins,
rings, and similar articles are taxable when paid for, directly or indirectly,
by the students.
(5) Sales to
educational associations, parent teacher organizations, teachers, and other
personnel of an educational institution are taxable.
(6) If an exemption is claimed, then at the
time of the transfer of the tangible personal property, the seller shall
retain, as part of the seller's records, an executed exemption certificate
which reads as follows:
CERTIFICATE TO BE EXECUTED WHEN TAX EXEMPT SALE IS MADE TO
AN EXEMPT INSTITUTION OR AGENCY
The undersigned hereby certifies that the item or items
being purchased are to be used or consumed in connection with the operation of
the exempt institution or agency named in the space provided below and that the
consideration for this purchase moves from the funds of the designated
institution or agency. In the event this claim is disallowed the transferee
promises to reimburse the seller for the amount of tax involved.
_________________________________________________
Name of exempt institution or agency
Date ___________________________
__________________________________________________
Signature and title of person making certification
(7) Schools operating a kindergarten through
twelfth grade program are not required to pay tax on the sales of textbooks to
enrolled students. Sales of textbooks to nonstudents are taxable. Sales of
yearbooks and annuals to both students and nonstudents are taxable.
