Do PTAs pay sales tax?
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Short answer: It depends on your state: some states let PTAs buy supplies without sales tax, and some don't. California PTAs pay sales tax on what they buy, while Texas and Florida let PTAs apply for an exemption. Being tax-exempt with the IRS doesn't settle sales tax; that's a state question, for purchases and for fundraiser sales.
| State | What PTAs do |
|---|---|
| California | Pay sales tax on what they buy. There’s no broad exemption. |
| Texas | Apply to the Comptroller for an exemption, then give stores the exemption certificate. |
| Florida | PTAs and PTOs can apply for an exemption certificate. The purchase must be paid with the group’s own money. |
Sales tax on what your group buys
Where a state allows tax-free purchases, there are usually two conditions. First, the group applies to the state and gets a certificate. Second, the purchase is paid with the group's money: a group check, a group card, or an invoice the treasurer pays.
A volunteer paying with their own card and getting paid back usually doesn't count. Florida says a purchase paid personally is taxed even if the volunteer is reimbursed later, and Texas says volunteers can't buy items tax free even if the group pays them back. Utah PTA's sales tax refund requests apply only to expenses paid by PTA check.
That's a good reason to use check requests: the group pays the vendor directly, so volunteers aren't out of pocket and the exemption is easier to use. Put sales tax on its own line on your payment request so you can see what you paid. More in the PTA reimbursement form and policy.
Check before you hand out the certificate.
Are school fundraisers taxable?
Sometimes. Being a nonprofit doesn't mean your sales are tax-free, and each state sets its own rules for what a school group collects tax on. California State PTA, for example, says its units generally don't collect sales tax on their sales, but that's California's rule, not a national one.
Before your next spirit-wear order, bake sale or school store, ask your state's tax agency what applies to you, and ask your state PTA if you're a PTA unit. Texas publishes a guide to school fundraisers that shows what a state answer looks like. If a state requires a sales-tax permit, add it to your yearly registration check.
Texas PTA sales tax
Texas PTAs aren't covered by their school's exemption. They apply for their own through the Texas Comptroller, then give stores an exemption certificate when they buy. If a store won't take the certificate, the PTA can pay the tax and claim it back with an Assignment of Right to Refund.
The PTA tax-exempt form
People mean two different things by "tax-exempt form". Your IRS determination letter shows your federal tax-exempt status. A sales tax exemption certificate comes from your state, in states that offer one. Florida's, for example, is applied for on one form and issued on another (DR-5 and DR-14). Keep both where the next treasurer can find them.
Questions people ask
Does a PTO or booster club get the same treatment as a PTA?
Not always. States can treat a school PTO or booster club differently, and some use different application forms. Check your state tax agency’s page for nonprofits.
Can we use the school’s tax-exempt number?
No. Your group is separate from the school and the district. In Texas, for example, PTAs aren’t covered by the school’s exemption.
Who can tell me for sure?
Your state’s tax agency, your state PTA if you’re a PTA unit, or a CPA.
Next steps: set up the reimbursement and check request rules that make an exemption work, and see what to give donors at your next fundraiser.