Sales Taxes

See Free State PTA Financial Guide pages 81 through 83 and Maryland Comptroller’s Sales and Use Tax guidance.

With the passage of House Bill 232, effective July 1, 2013, PTAs no longer need to charge sales tax when fundraising items are sold or re-sold by PTAs (like gift wrap, pizza kits, or spirit wear), in which funds from sales are deposited into the PTA account and paid out to a vendor (if applicable). HB0232: “This bill exempts from the State sales and use tax sales made by a parent-teacher organization or other organization within and elementary or secondary school in the State or within a local school system in the State.”

Every PTA unit must have a SALES AND USE TAX LICENSE NUMBER to be able to issue a Blanket Certificate of Resale to vendors (see below) and must report $0 in taxable sales.

Use the Maryland Tax Connect portal to file your sales tax report.

Local PTA units are required to pay sales tax on items purchased, unless those items will be resold. PTA units with a merchant account and using their own credit card machine must collect, file, and report sales taxes in one of three ways:

1. Issue a Blanket Certificate of Sale (see FSPTA Financial Guide) to the vendor in lieu of paying sales tax.

2. Pay the sales tax, then request a refund of that sales tax from the State.

3. Apply for Sales and Use Tax Exemption Certificate. PTA units may not use the school’s exemption certificate. The exemption may be obtained by filing the current year Combined Registration Application. NOTE: Most units do not have this certificate because applying for one requires an officer’s SSN and there are issues tied to this, especially since unit officers change so quickly.

PTAs must pay sales tax when they buy items for their own use such as in a cultural arts program or for their own office supplies.

PTAs are independent organizations and are not authorized to use the school tax number.