Question: Sales Tax and Fundraising in PA

As it relates to fundraising, are we required to collect sales tax? We have a PA exemption certificate but I am hearing that doesn't apply when your end user is not the school. All profits raised go to the school though -so confused!

Asked by Anonymous

Answers:

Advice from PTO Today

Rose H writes:
Hi,
Tax issues will vary from state to state, so you may actually have to call you state tax office. Also, your local fundraising rep should be able to walk you through this. Another option would be to contact your local town or county clerk for some guidance.

Not being expert in PA law, we can't really tell you what your exemption certificate is or what it covers. You may find the exemption you refer to covers your group when it is purchasing goods (so your group doesn't pay sales tax on the things it buys.) That's a separate issue from the laws that would cover how your group handles selling products during a fundraiser and if it is required to charge its customers sales tax.

Sorry we can't provide more information, but hope this points you in the right direction to get the answers you need.