Form Pub. Ks-1560 - Kansas Business Taxes For Schools & Educational Institutions Page 18
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37A nonprofit day care provider may also qualify for
SCHOOL CLUBS AND ORGANIZATIONS
exemption under K.S.A 79-3606(ii) - see the Day Care
Q & A in our Policy Library. Other exempt school-related
organizations are endowment associations and
Most organizations that work with a school to raise
foundations, and PTA/PTOs. If you have a question
funds to be spent on students and their extracurricular
about the sales tax status of a particular organization,
activities are not exempt. School organizations and clubs
contact KDOR for advice.
that are separate from the school or university must
pay sales tax on all purchases of property or services
for their use or for the school’s use. Taxable student
SEMINARS
organizations and clubs include, but are not limited to:
Fees and charges for seminars and workshops are
• Cheerleaders, Pep Squads, Pep Clubs, Drill Team
not generally subject to sales tax. Textbooks and
• Chess club
materials provided as an integral part of the seminar
• Class clubs (freshman, sophomore, junior, senior)
and included in the fee charged may be purchased
• Clubs for art, computers, history, music, languages,
without tax by an exempt entity such as a school. If food
sports, science, etc.
is provided as a part of the fee, the charge for the
• Fellowship of Christian Athletes
food (voluntary or mandatory) is subject to sales tax.
• Forensics Club and National Forensics League
• Fraternities and Sororities (honorary & social)
A school administrator is attending a
• Honor Societies (academic and specific fields)
seminar sponsored by a teachers college.
• Journalism Society
The college charges $150 for the two-day
• Kansas Association for Youth - KAY
seminar. The fee includes lunch and
• Letterman Club
seminar materials. The charge for lunch is taxable
• Ethnic Student Associations and Multicultural Clubs
unless it is a direct purchase by the administrator’s
• Music groups (band, choir, orchestra)
school or school district.
• National Honor Society
• ROTC/Jr. ROTC
A fee charged to attend a lecture or seminar open to
• Student Council/Student Government Association
the public would generally be viewed as a taxable
• Students Against Drunk Driving (SADD)
admission. A lecture or seminar open to the public free
• Teens as Teachers
of charge is not subject to sales tax.
An alumni group sponsors a breakfast
Like a school, these organizations and clubs must
lecture for $25; this charge taxable. A
register and generally must collect sales tax on their
university’s lecture series offered free of
taxable fund-raising activities. The fact that the funds
charge to the public is not taxed.
raised are used to buy curriculum materials and
equipment for a school is not a factor. As registered
retailers, they will use a Resale Exemption Certificate
TEXTBOOKS
(ST-28A) to buy their resale inventory without tax.
The rental of nonsectarian textbooks by public
Exempt Organizations
or private elementary or secondary schools is specifically
exempted from sales tax at K.S.A. 79-3606(h).
Certain nonprofit, multidiscipline youth development
Nonsectarian means that the book is not associated
organizations are exempt under K.S.A. 79-3606(ii). Like
with, or limited to, a particular religious denomination.
a PTA or PTO, a qualified organization will not pay sales
Since the textbook rental exception applies only to
tax on its purchases, and is exempt from collecting tax
nonsectarian textbooks, the rental of a textbook of a
on sales of tangible personal property by or on behalf
religious nature by an elementary or secondary school
of the organization. It must, however, register to collect
is subject to sales tax.
sales tax on its sales of admissions or taxable services.
KDOR has determined that the following organizations
NOTE: This exemption does not apply to institution of learning beyond
qualify for the exemption and have been issued a
the 12th grade. The rental of any type of textbook by a college,
university or vo-tech school is subject to sales tax.
Tax-Exempt Entity Exemption Certificate that details
their exemption:
The sale of new or used books, including all types
of textbooks, is subject to sales tax.
• Business Professionals of America
• Distributive Education Clubs of America (DECA)
• Family, Career & Community Leaders of America
UTILITIES
(FCCLA)
• Future Business Leaders of America
Public and Private nonprofit schools are exempt on
• Future Farmers of America
their direct purchases of the utilities of electricity, gas,
• Health Occupations Students of America
water and heat, regardless of how the utility is used*.
• Skills USA - Vocational Industrial Clubs of America
To obtain the exemption, complete and file your KDOR-
• Technology Student Association
issued tax exempt entity exemption certificate, with your
18
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