Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Maryland Taxes
Maryland Taxes: Find all tax-related information and services. Maryland's Money: Resource for transparent financial reporting. Comptroller of Maryland: Information and resources for government agencies, state employees, vendors, and the general public. Media Services: Outlet for agency and Comptroller news. Online Services: Links to all agency online services and applications. Search Engine: Find it Fast! Translate the website to many languages Home Page

Sales By Parent Teacher Organizations and Other Organizations

Effective July 1, 2013, the sales and use tax does not apply to a sale by parent-teacher organizations or other organizations within an elementary or secondary school in the State or within a school system in the State.

Definitions

A parent-teacher organization means a formal organization of parents, teachers and school staff of an elementary or secondary school that facilitates parental participation in a school and whose activities include fund raising on behalf of the school or its students. Examples include, but are not limited to PTAs, PTSAs and PTOs.

Other organizations means a formal group of students, teachers, administrators, and/or parents of students recognized by an elementary or secondary school that promotes, leads, or supports participation in an educational or extra-curricular activity at or on behalf of that school and whose activities include fund raising on behalf of the school or its students. Examples include, but are not limited to band boosters, science clubs and chorus boosters.

Organizations within a school system means a formal group of students, teachers, administrators, and/or parents of students recognized by a Maryland school system that promotes, leads, or supports participation in an educational or extra-curricular activity at or on behalf of that school system or one or more schools within that school system and whose activities include fund raising on behalf of the schools or its students. Examples include, but are not limited to PTAs, PTOs and PTSAs.

A school system in the State means one of the twenty-three county school systems in Maryland, the Baltimore City school system or a private or parochial school in the State.

Exempt Sales
  • Sales made by parent-teacher organizations or other organizations are not subject to the tax.
Non-exempt Sales
  • Sales made by parent-teacher organizations or other organizations for which the parent-teacher organization or other organization acts as a collection agent for a third party or benefits from the sales.
  • Sales made directly by the school or school system are subject to sales and use tax, unless otherwise exempt by statute.
  • Book sales and fund-raisers by third parties that take place on and off school property even if the parent-teacher organization or other organization is involved in the operation of the event.
  • Sales by a parent-teacher organization or other organization within an elementary or secondary school in the State or within a school system in the State where the parent-teacher organization or other organization accepts payment on behalf of a third-party vendor. NOTE: Third party vendors are responsible for the remittance of sales and use tax due on the sales they make. The responsibility for the remittance of the tax is not affected by the fact that a parent-teacher organization or other organization acts as a collection agent for the third party vendor or benefits from the sales.
Exemption Certificates and Resale Certificates

Parent-teacher organizations or other organizations, within an elementary or secondary school in the State or within a school system in the State, issued a sales and use tax exemption certificate by the Comptrollerís Office may supply a vendor with a resale certificate that bears the exemption number issued to the organization instead of a sales and use tax registration number. Parent-teacher organizations and other organizations not issued an exemption certificate should supply a vendor with a resale certificate bearing the organizationís sales and use tax registration number.

Parent-teacher organizations issued a sales and use tax exemption certificate by the Comptrollerís Office may close their sales and use tax accounts. Accounts may be closed by calling the Comptrollerís Office Taxpayer Service Center at 410-260-7980.

Any parent-teacher organization or other organization that does not possess a sales and use tax exemption certificate should not close its sales and use tax account. It is necessary to retain the sales and use tax account in order to provide vendors with a valid resale certificate when purchasing items for resale.

Questions relating to sales by parent-teacher organizations or other organizations should be directed to the Comptrollerís Office Taxpayer Service Center by calling 410-260-7980.



 
Links for Special Situations
Business Tax Types
Sales and Use Tax
Tax Information
Special Situations
  Tire Recycling Fee
  Flea Markets
  Purchases for Resale
  Sales of Food
  Out of State Purchases
  Modular Buildings
  Transient Vendors
  Medicine and Medical Equipment
  Janitorial Services
  Security Services
  Alcohol Sales Tax
  Bulk Sales Tax
  Mobile Homes
  Tax Included Sales
  Sales By Parent Teacher Organizations and Other Organizations
  Fabrication and Labor
  Bulk Vending Machine Sales
 
Download for Adobe Reader

Maryland.gov Homepage