Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 15
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37“all sales of tangible personal property and services
property. Fees or services that are not subject to sales
purchased by a parent-teacher association or organization,
tax include but are not limited to:
and all sales of tangible personal property by or on behalf
of such association or organization;”
• Building/room rental
• Child care
Like the school it supports, a PTA/PTO is exempt
• Consulting services
from paying sales tax when buying goods or taxable
• Fee for the first copy of a transcript or school
services. A qualified organization will use the Tax-Exempt
record
Entity Exemption Certificate (PR-78PT) to claim its
• Fees for seminars, training and workshops
exemption.
• Hair & nail care for people
• Mowing/Tree trimming
However, unlike a school, a PTA/PTO is also exempt
• Library fines and fees for lost or stolen
from collecting sales tax on its sales of tangible personal
books
property. Also exempted are sales of tangible personal
• Locker rentals
property by others on behalf of a PTA/PTO. This
• Medical or dental services
exemption from collecting sales tax on sales of goods
• Parking fees and permits
or merchandise makes a PTA’s exemption broader than
• Photo sitting fees (if the fee is for the sitting
the exemption for the school for which it is working.
only – the student does not receive a
photograph)
Sales tax is not due when birdhouses,
• Reimbursement for lost or damaged school
concessions, fireworks, flowers, T-shirts,
equipment or property
and other types of tangible personal
• Research and testing services
property are sold by a PTA, or by a school
• Snow & ice removal services
or other organization on behalf of its PTA. However,
• Trash service
when a school is selling tangible personal property on
• Tuition
its own behalf, it must collect sales tax.
• Veterinary services
IMPORTANT: Note that the exemption cited in
When in doubt about the sales tax treatment of a
K.S.A. 79-3606(yy) applies ONLY to sales of
fee or service not listed here, contact the KDOR for
tangible personal property by a PTA or by others on
advice. See Taxation Resources.
behalf of a PTA. PTA/PTO organizations must still
register to collect and remit sales tax when they are
providing taxable services (car washes) or selling
LEASES AND RENTALS
admissions (tickets to concerts/fun nights, etc.).
Kansas sales tax applies whether the item of tangible
PTA/PTO Defined
personal property is being sold at retail, rented or
leased. Schools must collect sales tax on the lease or
For purposes of the exemption, a parent-teacher
rental of all items except nonsectarian textbooks. The
association (PTA) means a nonprofit parent-teacher
rental of nonsectarian textbooks is specifically exempted
association chartered by the National PTA or Kansas
at K.S.A. 79-3606(h). See also Textbooks.
PTA. A parent-teacher organization (PTO) means a
nonprofit parent-teacher organization that is functionally
Schools that rent musical instruments, padlocks,
equivalent to a parent-teacher association. A PTA or
sports equipment, videos, etc., must collect sales tax
PTO is authorized to operate within a public or private
on each rental or lease payment. While the school itself
school by the governing authority of the school. For
may rent or lease equipment and musical instruments
the purpose of the PTA exemption, a school is defined
without tax, when the school rents these items to its
as an institution that meets the compulsory attendance
students, the lease/rental is taxable.
provisions of K.S.A. 72-1111.
IMPORTANT: The rental or lease of real
To be exempt, a PTA/PTO must:
property is not subject to sales tax. The fees
charged by a school for use of its building, auditorium,
• operate for the benefit and support of an
sports field, etc. are not taxable. However, if the building
individual school;
rental is included in a fee charged for a taxable event or
• have a defined organizational structure,
service, and is not separately stated, it would be subject
purpose, and goals; and
to sales tax as part of the gross receipts.
• be recognized by the school as a PTA or PTO.
PTAs/PTOs
A PTA/PTO provides programs within a school that
promote the education, health and safety of children.
Generally, there is only one PTA/PTO within a school
Parent-teacher associations or organizations (PTA
and it would have long-term goals and objectives and
or PTO) are granted a sales tax exemption under K.S.A.
numerous programs operating within the school.
79-3606(yy). A PTA/PTO is exempt on:
15
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