I would call. I've never heard of a PTO responsibile for the hot lunch program. That is usually the responsibility of the board of education since the children are within their building and under their jurisdiction at the time. You would think the Board of Ed would want to be sure the kids were meeting all state and government guidelines.
I don't know that clause gives you any particular loophole.
I think you need to call and talk to someone in the sales tax office and get their opinion as to whether sales tax needs to be collected on these lunches.
If you are providing school lunches under the federal lunch program, I think the sales may be except as a special exclusion. If you aren't tied into THAT, then it may simply be a taxable activity.
New PTO w/ a IL sales tax question. PTO organizes, collects fees from parents, remits to food supplier, serves & cleans up for Hot Lunch.
In IL : "An exempt organization may engage in sales to members (primarily for the purposes of the selling organization), noncompetitive sales, and "occasional dinners and similar activities" (this term allows exempt organizations two fundraisers per calendar year) without incurring Retailers' Occupation Tax liability. See Section 130.2005, subsections (a)(2)-(4), however, if exempt orgnizations engage in ongoing selling activities (such as Little League concession stands or sales of items in a thrift shop run by a church) they must register with the Department as retailers, provide their suppliers with Certificates of Resale for the items they sell, and collect and remit to the Department the tax due."
Does anyone know if a Hot lunch program falls under "primarily for the purposes of the selling organization?"
