Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 13
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37Meals, snacks or beverages sold to off-campus
institutions sell a convenience card to students. It comes
groups or student organizations are taxable. Sales of
in various monetary amounts, may be recharged, and
these items to the school directly are not taxable.
is designed to be used by the student instead of cash
for all types of campus purchases. This is really a
Your college cafeteria charges $50 to
“charge card” and included in the price paid or charged
provide cookies and coffee for a workshop
for any item will be the applicable sales tax on the sale
held in your student union, but sponsored
of the item. The sale of the card itself is not taxable.
by an outside organization. The cafeteria
must charge sales tax on this sale, unless the outside
As a convenience to students for campus
organization is exempt, such as a city or school district.
transactions, you offer a rechargeable
university card in several monetary
Contracted Food Services
denominations. It is designed to be used
by the student instead of cash for purchases at the
A caterer or concessionaire operating a cafeteria,
bookstore, snack bar, computer lab, cafeterias, etc. The
lunch or dining room on the premises of any public or
student does not pay sales tax on the card itself, but
private elementary or secondary school or public or
included in the total price paid for items purchased with
private nonprofit educational institution shall collect and
the card will be any applicable sales tax.
remit sales tax on its sales to the public.
FUND-RAISING
A university contracts with XYZ Corp. for
food service on campus. This includes a
restaurant and snack bar in the student
Fund-raising activities are an integral part of the
union and any food served on-campus for
funding of schools and educational institutions. A
meetings, seminars and other events. As the food service
common misconception is that the sales tax does not
vendor, XYZ Corp. must be registered to collect sales
apply if the proceeds of a fund-raising activity are for
tax on all of its food sales to the public and off-campus
the exclusive use of the exempt school or educational
organizations.
institution for school purposes. This is not the case.
Direct sales to the university would be exempt with a
Although exempt on its purchases, a school or an
completed exemption certificate. However the university
educational institution is not exempt from collecting sales
would pay sales tax on its indirect sales of food or
tax on its taxable fund-raising activities, such as the
beverages provided as part of an event/seminar for
retail sale of admissions, goods or services listed earlier
which a fee is charged.
in this publication. Only a sale that meets the
qualifications of an isolated or occasional sale as
A university’s School of Eduction is
defined herein is not taxed.
conducting a continuing education
seminar for teachers. Included in the $50
Booster clubs and most student organizations must
seminar/registration fee is a $15 charge
also collect sales tax on taxable fund-raising events.
for lunch provided by its food service contractor, XYZ
Only PTAs/PTOs and certain nonsectarian youth
Corp. The $15 lunch charge is taxable.
organizations are exempt from collecting tax on retail
sales of merchandise, but must still collect tax on sales
Meal Cards or Tickets
of admissions and services.
Semester meal cards used at a cafeteria closed to
For more information about the tax treatment of a
the public are not subject to sales tax.
particular group or fund-raising activity, consult the
topics in this guide (Auctions, PTAs/PTOs, Student
For $700 a semester a dorm resident may
Clubs and Organizations), and/or use the Policy
eat at any of the university’s students-only
Information Library on our web site.
dining halls (closed to the public). This
meal card is not taxable.
Buying fund-raising items for resale
However, a meal card that entitles the holder to eat
Another common misconception about fund-raising
at a cafeteria open to the public is subject to sales tax.
sales is that if an organization, school or individual pays
the sales tax when it buys its inventory, it does not have
You offer a monthly meal card to students,
to collect sales tax on its retail sale of that item. This is
faculty and staff. For $200 the holder may
also not true.
dine in cafeterias open to dorm residents
only and the student union facility open
Sales tax is designed to be paid only once - by the
to the public. The sale of this type of meal card is taxable
final consumer or user. A school or student organization
as it entitles the person to eat anywhere on campus.
(except a PTA/PTO) making retail sales (to the final
The sale of other types of cards may or may not be
consumer) is required to obtain a tax registration and
taxed. The sale of a munchies card entitling the student
collect sales tax on its sales. Therefore it is not the final
to obtain pop and snacks is taxable. Some educational
consumer of the fund-raising items and should not pay
13
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial