Details

Many schools sell taxable items directly to students often in school stores. School organizations and clubs also make sales. Generally, sales tax applies to these sales because the exemption for school purchases does not apply to sales made by a school. Fundraising exemptions may apply.

If sales are made by a school or SPPS, the funds must be deposited with the business office. In this situation, fundraising exemptions do not apply and tax must be collected. If sales are made and the received money is deposited into a student activity (intraschool) account or other account, the sales are taxable. 

Organizations such as PTAs, PTOs and booster clubs are separate entities from the school. These organizations must have their own Minnesota tax identification number and be registered for sales tax unless they qualify for fundraising exemptions.

Examples of Taxable Sales

• Admission to
  • Swimming pools
  • Tournaments
  • Any non-regular season games, events and activities
• Amusement devices such as jukeboxes or pinball machines
• Athletic equipment, such as the sale or rental of football shoes or pads
• Books (other than textbooks), encyclopedias, dictionaries and yearbooks
• Cosmetic and toiletry items
• Fees for the use of computers
• Graduation announcements, class rings, and pictures
• Lodging for less than 30 days, unless it’s included in the charge for a school-sponsored educational program on the school’s premises
• Non-instructional shop, art, and sewing supplies
• Parking fees
• Rental of recreation areas and athletic facilities
• School supplies, such as pencils, paper and notebooks

Examples of Tax Exempt Sales

• Admission to artistic performances, such as concerts and plays sponsored by the school
• Reimbursement for breakage or loss of books or equipment
• Candy sold for fundraising purposes (on or off school premises)
• Lodging where the agreement is for more than 30 days
• Feminine hygiene products, such as sanitary napkins and tampons
• Graduation cap and gown rental
• Gym clothes
• Food or sewing materials for Family and Consumer Science instructional purposes
• Magazine subscriptions (not sold over the counter)
• Meals served at pre-kindergarten through 12th grade schools
• Membership dues to school organizations
• Tickets to regular season games, events and activities held on or off school premises
• Course-required textbooks and instructional materials sold to regularly enrolled students
• Tuition and related instructional fees