Sticky space

The Ultimate School Brochure Fundraising Tax Guide

The Ultimate School Brochure Fundraising Tax Guide
The Ultimate School Brochure Fundraising Tax Guide

A nationwide tax resource for brochure fundraisers

How do you know if you need to collect sales tax on your brochure fundraiser or not? It’s actually not as straight forward as you might think. The most common misunderstanding is, “We’re a nonprofit organization so we don’t need to worry about tax”. On the contrary, every state has tax laws regarding fundraisers; therefore it’s important that you understand what your obligations are, if any, before moving forward with your sale.

When it comes to school brochure fundraising tax laws, no 2 states are alike. Some only charge tax on the wholesale cost while others charge on retail.

Retail (Brochure List Price) = Wholesale (Invoice Amount) + Group Profit

You may be responsible for tax on nonfood only, or both food and nonfood items. Or, you may not be required to pay any tax at all if you have a tax exempt certificate or tax ID number. Finally, your state may not require you to pay any tax regardless. However, make sure you’re not on the hook for any local taxes either.

Assistance from Brochure Fundraiser Companies

Many brochure fundraiser companies offer to collect and remit the sales tax on behalf of the organization. Some even provide brochures that already have the tax included in the price shown for each item. This way, the tax won’t come out of your profit; plus you wouldn’t need to ask your parents to collect it with their orders. Although some companies provide tax charts, this adds another step for your sellers. Regardless, companies should always itemize the tax amount on your invoice so you’ll know how much is owed.

Brochure Fundraising Sales Tax Table

Understanding school brochure fundraising sales tax can be daunting. In order to clear up some of the confusion, we’ve created the following resource table. Keep in mind that tax laws may change so we recommend contacting your state department of revenue (DOR) for the latest and most accurate information. Please note that all sales tax rates shown below are state percentages only. Local cities and counties may impose additional tax. For combined state and local tax rates, see Calculator.net.

State Tax on Food Tax on Nonfood Tax on Wholesale/ Retail State Tax Tax Status State DOR Website
Alabama Yes Yes Wholesale 4% Tax Exempt http://www.ador.alabama.gov
Alaska No No N/A 0% No State Tax http://dor.alaska.gov
Arizona Yes Yes Wholesale 5.6% Not Tax Exempt https://www.azdor.gov
Arkansas Yes Yes Retail 6.5% Not Tax Exempt http://www.dfa.arkansas.gov
California No Yes Retail 7.5% Not Tax Exempt http://www.taxes.ca.gov
Colorado Yes Yes Retail 2.9% Certificate Required https://www.colorado.gov/revenue
Connecticut Yes Yes Retail 6.35% Tax Exempt www.ct.gov/drs
Delaware No No N/A 0% No Tax http://revenue.delaware.gov
Florida No Yes Wholesale 6% Tax Exempt http://dor.myflorida.com
Georgia Yes Yes Wholesale 4% Tax Exempt https://dor.georgia.gov
Idaho Yes Yes Retail 6% Not Tax Exempt http://tax.idaho.gov
Illinois Yes Yes Retail 6.25% Tax Exempt http://www.revenue.state.il.us
Indiana No Yes Retail 7% Tax Exempt http://www.in.gov/dor
Iowa No Yes Wholesale 6% Tax Exempt https://tax.iowa.gov
Kansas Yes Yes Retail 6.15% Not Tax Exempt http://www.ksrevenue.org
Kentucky Yes Yes Retail 6% Tax Exempt http://revenue.ky.gov
Louisiana No Yes Wholesale 4% Tax Exempt http://www.rev.state.la.us
Maine No Yes Wholesale 5.5% Tax Exempt http://www.maine.gov/revenue
Maryland No Yes Retail 6% Tax Exempt http://taxes.marylandtaxes.com
Massachusetts No Yes Wholesale 6.25% Tax Exempt https://www.mass.gov/dor
Michigan No Yes Retail 6% Tax Exempt http://www.michigan.gov/treasury
Minnesota No Yes Retail 6.875% Tax Exempt http://www.revenue.state.mn.us
Mississippi Yes Yes Retail 7% Certificate Required http://www.dor.ms.gov
Missouri Yes Yes Retail 4.225% Certificate Required http://dor.mo.gov
Montana No No N/A 0% No Tax https://revenue.mt.gov
Nebraska No Yes Wholesale 5.5% Tax Exempt http://www.revenue.nebraska.gov
Nevada No Yes Retail 6.85% Tax Exempt http://tax.nv.gov
New Hampshire No No N/A 0% No Tax http://revenue.nh.gov
New Jersey No Yes Wholesale 7% Tax Exempt http://www.state.nj.us/treasury/revenue
New Mexico Yes Yes Wholesale 5.125% Tax Exempt http://www.tax.newmexico.gov
New York No Yes Retail 4% Certificate Required https://www.tax.ny.gov
North Carolina Yes Yes Wholesale 4.75% Certificate Required http://www.dornc.com
North Dakota No Yes Retail 5% Tax Exempt https://www.nd.gov/tax
Ohio No Yes Retail 5.75% Tax Exempt http://www.tax.ohio.gov
Oklahoma Yes Yes Retail 4.5% Tax Exempt https://www.ok.gov/tax
Oregon No No N/A 0% No Tax http://www.oregon.gov/dor
Pennsylvania No Yes Retail 6% Tax Exempt http://www.revenue.pa.gov
Rhode Island No Yes Retail 7% Tax Exempt http://www.tax.ri.gov
South Carolina Yes Yes Retail 6% Certificate Required https://dor.sc.gov
South Dakota Yes Yes Wholesale 4% Not Tax Exempt http://dor.sd.gov
Tennessee Yes Yes Wholesale 7% Tax Exempt https://www.tn.gov/revenue
Texas Yes Yes Retail 6.25% Not Tax Exempt http://comptroller.texas.gov/taxes
Utah Yes Yes Retail 5.95% Tax Exempt http://tax.utah.gov
Vermont No Yes Retail 6% Not Tax Exempt http://tax.vermont.gov
Virginia Yes Yes Retail 5.3% Not Tax Exempt http://www.tax.virginia.gov
Washington No Yes Retail 6.5% Tax Exempt http://dor.wa.gov
West Virginia Yes Yes Retail 6% Tax Exempt http://www.revenue.wv.gov
Wisconsin Yes Yes Wholesale 5% Tax Exempt https://www.revenue.wi.gov
Wyoming No Yes Retail 4% Tax Exempt http://revenue.wyo.gov

(Excludes Hawaii)

Sales Tax Takeaways

  • Every state that charges tax, charges it 100% of the time on nonfood items.
  • Only Delaware, Montana, New Hampshire and Oregon do not have a state or local sales tax.
  • Alaska is the only state that doesn’t charge state tax, but charges a local tax.
  • 9 states are not tax exempt and don’t accept tax exempt certificates. Therefore, you must pay school fundraising sales tax in those states regardless.
  • Only 9 states don’t add a local sales tax to the state tax.

In summary, first check with your state DOR to see if your group is tax exempt from paying school brochure fundraising sales tax. If you are tax exempt, then you won’t need to worry about tax. However, if you’re not tax exempt, your state may allow you to submit a valid tax exempt certificate. However, if neither of these options are available, you'll need to collect sales tax for your fundraiser. And if you happen to live in a state that doesn't charge sales tax at all, you're off the hook regardless.

Additional Tax Resources:

  1. Taxes, PTOs, and the IRS: Questions about tax-exemption? Get the scoop on 501(c)(3), by PTO Today
  2. IRS FAQs: Frequently Asked Questions About Applying for Tax Exemption
  3. IRS Forms: Exempt Organizations Forms & Instructions

Get Your Free eBook

Receive your complimentary Your Kickoff Guidebook: Everything you need to run your fundraiser ebook by completing our ‘Download Your Free Kickoff Guidebook’ form.

Printer Friendly, PDF & Email

Calculate Your Profit

Request your info kit

We'll send you our latest brochures to review in the mail.

Have a question?

Related Products

Limon Con Chile Beef Jerky Fundraising Product 2H-819Y-4ON5
The Carne Seca line embraces on the finest and meticulous preparation by hand to create an all natural beef jerky…
Hatch Green Chile Beef Jerky Fundraising Product CC-LXOL-AOUY
The Carne Seca line embraces only the finest and meticulous preparation by hand to create an all natural beef jerky…
Maple Brown Sugar Beef Jerky Fundraising Product 312
As part of the “Tasting Kitchen” artisan beef jerky line, the 2.5 oz. Maple Brown Sugar Beef Jerky is made with extra…
Tundra Bottle Fundraising Product 26Tundra
Boost your profits by selling our larger 26 oz. stainless Tundra bottle. Choose black or white and we'll add your laser…
Napa Cup Fundraising Product 12Napa
Add your full-color or laser-etched logo and text design to our 12 oz. Napa cup and show off your school spirit.…
$2 Caramel Sea Salt Pretzel Rods wc-64800
$2 Caramel Sea Salt pretzel rods are heavily coated in creamy caramel and dark chocolaty drizzle with a hint of sea…
Xtreme Sports Smencil Fundraiser Product T0100
Xtreme Sports Smencils offer 10 delightful scents like Strawberry, Bubble Gum, Grape, and Lemon-Lime. Each No.2…
Soda Shop Smencils Fundraiser Product T2900
Soda Shop Smencils come in 5 popular scents like fruity Cherry Cola, aromatic Rootbeer, citrusy Fizzy Pop, Orange Soda…
Safari Smencils Fundraiser Product TSS100
Safari Smencils offer 10 wild and tropical scents made from 100% reused newspapers and plastic. Each smencil is…
$2 Fruit Zoo Smencils Fundraising Product B32MP8
Available in 8 unique scents, Fruit Zoo Smencils are clickable 2B graphite mechanical pencils with a scented grip made…

What Our Customers Say

5

The overall service that we received from Big Fundraising Ideas was exceptional! Product quality was outstanding and the prize incentives were excellent. I will definitely recommend them to others!

Yvonne Munoz
Vice Principal
Collins Primary
Raised:
$19,695.82
5

The overall service that we received from Big Fundraising Ideas was exceptional. Product quality was outstanding and the sales incentives were excellent. We loved that the cookie dough orders came presorted.

Monica Wysong
PTA Fundraising Chair
Mireles Elementary
Raised:
$35,564.75