A nationwide tax resource for brochure fundraisers
How do you know whether you need to collect sales tax on your brochure fundraiser? It's not as straightforward 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, you must understand what your obligations are, if any, before moving forward with your sale.
Regarding school brochure fundraising tax laws, no two 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 non-food items. Or, you may not be required to pay any tax if you have a tax-exempt certificate or tax ID number. Finally, your state may not require you to pay any tax regardless. However, ensure you're not on the hook for 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 from your profit; 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. We've created the following resource table to clarify some confusion. Remember that tax laws may change. Hence, 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 taxes. 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 | https://revenue.louisiana.gov/ |
| 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.
- Nine 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 nine states don't add a local sales tax to the state tax.
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, you won't need to worry about taxes. However, if you're not tax-exempt, your state may allow you to submit a valid tax-exempt certificate. However, if neither option is available, you must collect sales tax for your fundraiser. And if you live in a state that doesn't charge sales tax, you're off the hook regardless.
Additional Tax Resources:
- Taxes, PTOs, and the IRS: Questions about tax-exemption? Get the scoop on 501(c)(3), by PTO Today
- IRS FAQs: Frequently Asked Questions About Applying for Tax Exemption
- IRS Forms: Exempt Organizations Forms & Instructions
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