A. PTA/PTOs or OTHER SCHOOL ORGANIZATIONS. A PTA/PTO or other school organization that conducts fundraising activities must pay tax on purchases for resale but does not have to collect tax on the sales of the items. However, if the vendor provides order forms that are distributed to the students and the students take orders for the vendor, the vendor is responsible for sales tax on the sales made by the students. The students are permitted to collect tax on the vendor's behalf. However, if the students do not collect the tax for the vendor, the vendor must remit the total tax due to the state. Tax is due on the gross receipts received by the students from the purchaser.

B. EXEMPT ORGANIZATIONS. Exempt organizations may purchase items exempt from tax. For a list of organizations that are statutorily exempt from tax on their purchases, see GR-31. Exempt organizations are not specifically exempt from tax on sales made by the organizations. An exempt organization that operates as an established business is required to collect tax on its sales.

C. CHARITABLE NONPROFIT ORGANIZATIONS. Charitable organizations that are not engaged in business for profit are not generally required to collect tax on sales made by the charitable organization. However, if a charitable organization makes sales of new tangible personal property and competes with sales by for-profit businesses, then the sales by the charitable organization are taxable. See GR-39(C) for information regarding whether sales are considered to compete with those of for-profit businesses.