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View Full Version : Fundraising in PA - Sales Tax
MiaBellaPA
03-18-2010, 06:52 AM
I was wondering if anyone could lay out the sales tax guide lines for fundraisers. Or point me in the direction of a web site that lays it out so that little ol me can understand it. I know the general stuff but I am looking for the hard cut and dry.
If you do a fundraiser for a non exempt organization and they are selling 16 oz jars do you charge them sales tax on the price they decide to sell the candle for or just the on the price you sell the candle to them.
Also,
What form do you need to collect from an exempt organization for your records?
Any help would be greatly appreciated.
Thanks
Brenda :confused:
If you do a fundraiser for a non exempt organization and they are selling 16 oz jars do you charge them sales tax on the price they decide to sell the candle for or just the on the price you sell the candle to them.
Also,
What form do you need to collect from an exempt organization for your records?
Any help would be greatly appreciated.
Thanks
Brenda :confused:
FlickerScents
03-18-2010, 07:37 AM
You would collect sales tax on the price you are selling the candles to them for.
I sell the candles for a set price and they give me a set price back per candle. If they are not tax exempt I need to have the tax so I can pay it.
I am not in PA....so laws may be different.
I think the form you need is a 503-B....your state would be able to tell you the correct form if you go to thier online site or give them a call.
Hope this helps
I sell the candles for a set price and they give me a set price back per candle. If they are not tax exempt I need to have the tax so I can pay it.
I am not in PA....so laws may be different.
I think the form you need is a 503-B....your state would be able to tell you the correct form if you go to thier online site or give them a call.
Hope this helps
AletheaAnderson
03-18-2010, 10:58 PM
Greetings,
Always check with your state and county, they can operate VERY differently!
One thing we need to consider is the organization is doing a fundraiser with we the 'distributor' not the company. Also the organization is not actually buying the candles, the 'shoppers' are and the organization is funneling the money down the line.... (see below)
The government wants their sales tax, and usually the sales tax exemption applies only to organizations who purchase product up front to sell for profit.
In the event of a Mia Bella fundraiser, the people who buy the candles are paying for the candles and thus would pay sales tax, the money then funnels to the organization where they keep their profits, then the money funnels to the distributor (it is not the org who pays the taxes, it's those who bought the candles, so the org is not exempt, they are not 'buying' the candles they are passing the money along to the distributor) who then keeps their profits paying the rest to the corporate offices.
The organization is not actually 'paying for' the product, the 'shoppers' are. So there is a fine line! The rules vary state to state, and down to county, parrish and some times city/town as well.
It is always best to check with your local sales tax board to find out the rules for fundraisers and tax exemption status for the city/town where the fundraiser is located.
If you are doing a fundraiser across state lines, your wholesale license on file will not be vaild. A resale license is ONLY valid for the state it is registered in. I.e someone lives in Maryland and does a fundraiser in PA. Taxes WILL be charged if the candles are shipped to PA. (or any FR across any state lines)
Always check with your state and county, they can operate VERY differently!
One thing we need to consider is the organization is doing a fundraiser with we the 'distributor' not the company. Also the organization is not actually buying the candles, the 'shoppers' are and the organization is funneling the money down the line.... (see below)
The government wants their sales tax, and usually the sales tax exemption applies only to organizations who purchase product up front to sell for profit.
In the event of a Mia Bella fundraiser, the people who buy the candles are paying for the candles and thus would pay sales tax, the money then funnels to the organization where they keep their profits, then the money funnels to the distributor (it is not the org who pays the taxes, it's those who bought the candles, so the org is not exempt, they are not 'buying' the candles they are passing the money along to the distributor) who then keeps their profits paying the rest to the corporate offices.
The organization is not actually 'paying for' the product, the 'shoppers' are. So there is a fine line! The rules vary state to state, and down to county, parrish and some times city/town as well.
It is always best to check with your local sales tax board to find out the rules for fundraisers and tax exemption status for the city/town where the fundraiser is located.
If you are doing a fundraiser across state lines, your wholesale license on file will not be vaild. A resale license is ONLY valid for the state it is registered in. I.e someone lives in Maryland and does a fundraiser in PA. Taxes WILL be charged if the candles are shipped to PA. (or any FR across any state lines)
robynec
03-19-2010, 05:40 AM
Loved the way you explained it Alethea. Good info thanks~
MiaBellaPA
03-19-2010, 10:37 AM
Thanks - This defiantly puts things into a perspective I can understand - I will check with my state for sure but I really appreciate your responses
