PTO Today

we are in texas and our PTA want to become a PTO. can someone please give me instructions on how to make this an easy transition? thank you.

Hi Kimmy -

Great place to start = http://www.ptotoday.com/pto-today-ar...to-vs-pta-faqs

Tim

Yes, we want to change too. Our group is really mad about the sales tax in Texas and that PTA is not fighting to get it removed. We want to switch to keep all of the dues that our parents pay at our school. It doesn't make any sense to send the money to an organization who doesn't lobby on our behalf!

That statement concerns me. Texas has no state income tax. So sales tax and property tax (among others) are key sources of funds to pay for the billions of dollars of services provided in Texas. What is it that makes you mad? As a non-profit (PTA or PTO), you can be exempt on sales tax for purchases and for collecting/remitting sales tax on two fundraising events per year.

Texas PTA went to the comptroller and the two tax free days no longer apply to catalog sales. Below is a link details the specifics:

Texas PTA - www.txpta.org

I'm familiar with that ruling. And I'm not sure it's a new ruling, but that interpretation wasn't well known or was disregarded by many people. I thought I understood the rules myself pretty well and only learned about that last year.

Basically, the Texas Office of the Comptroller takes the position that if the organization is merely acting as an agent of the catalog/candle/cookie dough/whatever company and taking a percentage but assuming no risk, that is not actually the [B]organization's[/B] fundraiser and not eligible for sales tax exemption. You can still have your two tax-free fundraisers, but those kind don't count.

I'm finally starting to understand the tax thing myself. From the way I understand it, PTA went to the new comptroller and asked for a clarification last year. Apparently the new comptroller interprets the ruling differently than the old comptroller. I guess that me and most of our group is mad that PTA is not lobbying the comptroller or the TX legistlature to get a new law passed. PTA always touts that the dues are to help train you and to lobby for our children. A lot of our parents only have $20 to spend on a fund raiser and that includes tax. So you lose $2 for tax and then you multiply that out and it adds up really quickly.

This year Texas PTA is lobbying for the Texas Legislature to have the current state-wide tax-free day encompass all school supplies. It currently does not. It lobbied (unsuccessfully) to mandate shild booster seats for children who have outgrown infant seats but are too small for regular seat belts. It successfully stopped the transporting of children in the pickup beds of trucks.Texas PTA is trying to get buses to stop idling while waiting to load and unload school buses. It got money to retrofit old buses so the diesel fumes don't enter the passenger compartments.
The ability to purchase their guides and their money matters info will more than pay for the cost of an audit by a CPA.Your 3 bucks is well spent.

[I]Apparently the new comptroller interprets the ruling differently than the old comptroller.[/I]

It's true there's a legal opinion or interpretation on that, but it's not new. When I first heard of this a year ago I was surprised as I really thought I understood the sales tax rules. But when I checked, the Comptroller's Office has been issuing that same statement since at least 2002. They have opinion letters on file through the website. The new Comptroller has only been in place for about a year, and she's brought lots of change - but not that particular item. However, that's not to say the interpretation couldn't ever change. Anything is possible.

Can anyone explain why PTA wouldn't lobby to get the sales tax on catalog sales overturned in Texas? Our school doesn't even have enough money to go to summer seminar and we fell like we have been sold out. I think cookie dough (all though tax free) is too expensive. It is $13 for 3lbs. That is silly. A catalog has tons of stuff below $10...much more reasonable prizes. I heard that we don't have to worry about taxes, the company has to send it in but it is still ultimatly a pass through for the customer. I saw on PTO Today that Colorado's governor eliminated the taxes in Colorado. I just wish PTA would lobby on beneficial stuff. Tax on school supplies is hundreds of dollars but tax on a catalog is thousands.

Frustrated in Texas. PTO here we come!