Sales By PTO and Other Organizations

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.

Sales made by parent-teacher organizations or other organizations are not subject to the tax.

• 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.

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 Comptroller's 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 organization's sales and use tax registration number.

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