SALES TAX GUIDELINES FOR SCHOOL DISTRICTS

Transcript:SALES TAX GUIDELINES FOR SCHOOL DISTRICTS:
SALES TAX GUIDELINES FOR SCHOOL DISTRICTS Purchases Admissions Sales By: Marissa D. Walker, Staff Auditor Purchases Certificate of Exemption ONLY applies to purchases. Exemption DOES NOT apply to sales. Purchases by schools should support the exempt nature of the School District which is to provide a quality education to Pasco County students. Purchases are either for the school’s use or for resale. If the purchase is for school use, it is exempt. If the purchase is for resale, it is taxable. Option to pay tax to supplier on cost of items resold Per Rule 12A-1.0011, schools have the option of paying tax to suppliers on the cost of certain items purchased for resale (rather than collect sales tax at the time of sale): School materials and supplies (supplies sold at the school store, instruments, uniforms). Items sold for fundraising (such as candy, y-ties, greeting cards, T-shirts, smencils, sports bottles, car magnets, and similar items). Taxability of purchase depends on item’s disposition EXEMPT PURCHASES FOR SCHOOL USE: Classroom supplies Classroom technology Uniforms & instruments used by students and returned to school T-shirts for students if given away (student does not pay) Food for school events and activities involving students, teachers, and parents Food for official staff meetings/events and staff recognition (should occur on a limited basis and be reasonable) Grad & Prom supplies if given away (student does not pay) Student incentives & awards TAXABLE PURCHASES FOR RESALE: Fundraising supplies Items for sale at school store Uniforms & instruments sold to students (student pays) T-shirts sold to students Prepared food for banquets or other student activities sold to students (student pays) Grad and Prom supplies sold to students (student pays) Cheerleading personal items and band consumables sold to students (student pays) Promotion and Public Relations These expenditures include activities related to student registration, official meetings and receptions, recognition of service of a staff member, and staff hospitality. Per State Board of Education Rule 6A-1.0143, these expenditures should “directly benefit” or “be in the best interest of the district”. Test for Exemption of Promotion and Public Relations Expenditures Does the expenditure directly benefit the school? Is the expenditure considered part of the “normal” educational activities of the school? Does the expenditure occur on a limited basis? Is the amount reasonable? Examples of Promotion and Public Relations Expenditures Not Taxable * Taxable ** Food for student and official staff-related activities. Items purchased for