School District Homepage
|School District of Philadelphia|
|Policy and Procedures|
|Subject||Pennsylvania Sales Tax|
|Classification||Collection and Payment|
|Date Issued||November 1992|
|Issued by||Office for School Operations|
|Review Before||As needed|
I. Purpose and Scope
Schools, school organizations and clubs are not exempt from the provisions of the Pennsylvania Sales Tax w when they engage in sales to students, staff, or the public. In the vast majority of situations the sales tax must be assessed at the time of the sale. 'Me sections which follow will attempt to distinguish between the transactions where the tax must be collected and remitted by the school, and when the obligation can be met by payment to the supplier.
A sample list of items that are taxable and items that. are exempt from. the sales tax is included.
COPIES OF THIS POLICY AND PROCEDURE SHOULD BE GIVEN TO ANY CLUB, ASSOCIATION OR ORGANIZATION AFFILIATED WITH THE SCHOOL WHICH MAY BE ENGAGED IN TAXABLE SALES.
II. Taxable/Non-taxable Items
Some of the more commonly sold items which are subject to the pro-visions of the Pennsylvania Sales Tax are:
1. books and dictionaries (except as noted
in B. 4, below);
2. calendars, greeting cards, cosmetics, magazines;
3. notebooks, notebook paper, pens, pencils;
4. stadium cushions;
5. shop or voc-tech repair services; including automobile and appliance parts;
6. service to wigs and hair pieces;
7. shampoo, powders, skin and sun lotions;
8. athletic and book bags
1. gym suits. sweat suits, sew-on emblems,
2. food, beverages sold in school;
3. candy, fruit
4. curriculum-required text books;
For further information regarding taxable items. a copy of the. Pennsylvania Department of Revenue pamphlet REV-7171AS-Re ers Information-Sales. Use and Occupancy Tax. should be secured from the Department of Revenue. Room 201, State Office Building, 1400 Spring Garden Street, Philadelphia, PA 19130. The telephone number is 215-560-2056.
III. Tax Collection
When a school, school organization or club engages in taxable sales or services, it must file with the State and receive a sales tax license number. There are two types of sales tax license numbers:
A. Temporary License - A one time temporary license can be obtained through any Department of Revenue District Office, Room 201, State Office Building, 1400 Spring Garden Street, Philadelphia, Pennsylvania 19130. It lasts thirty days or less, and terminates automatically with the filling of a single tax return. A separate license would be needed for each separate event.
B. Regular License - must be filed with the Department of Revenue, License and Bonding Division, Department 280901, Harrisburg, Pennsylvania 17128-0901. Tax returns must be filed quarterly. To terminate the obligation to file returns, a formal notice of termination must be filed with the Revenue Department.
C. Refer to #805.1 for sample form.
D. Home and School Associations, clubs or other organizations that engage in sales must obtain their own sales tax number and Me their own tax returns.
If a school or principal allows an organization to use their tax number, the school and principal will be responsible for any taxes which are not remitted to the Commonwealth.
IV. Payment of Sales Tax Through the Vendor/Supplier
There are a few limited exceptions to the general rule that the sales tax must be paid at the time of the re sale. They are as follows:
A. Fund Raisers
Only purchases of taxable property which the school or the school organization will sell to the public, as a fund raising activity, may have the sales tax paid to the supplier. Sales to the public means outside of the school and does not apply to school stores or concessions at fairs or athletic events.
Where yearbooks are purchased for resale or directly paid for as a part of class dues, the sales tax obligation will be met by payment of the tax to the supplier,
C. Supplier Does Not Collect Tax
If the supplier does not collect or refuses to collect the tax, or if the school's tax exempt number is used to e the purchase, the school must collect the tax and remit it to the Commonwealth. (See 111. above)
D. Direct Sales by Vendors to Student/Parents
In cases such as student photographs, or videos,
where the order and payment is directly between the buyer and the supplier,
sales, year tax collection is the responsibility of the supplier unless
the school places itself in the position of reselling the item. Mere collection
of orders does not amount to a resale.