Yes - We have a new school (we are in our 2nd year) and last year we got our 501c3 - when I became president this year I asked about state sales tax and everyone thought it was the same. Unfortunately so far our "vendors" haven't been much help other than to say - well no one else collects it.
I certainly don't have the answers, but keep in mind that the "tax exemption" that comes with 501c3 status is exemption from paying FEDERAL income tax. For most (?) states, when your group is a federally-recognized 501c3, you might also qualify to be exempt from paying STATE SALES tax on purchases your group makes. That does not necessarily exempt your customers from paying state sales tax.
As a vendor, you may need to collect sales tax and remit it to the state on your customers' behalf. It's a good question to ask any fundraising vendor you are evaluating. Presumeably, the professional fundraising company should know how sales tax collection works in the states in which they do business. I've always felt a bit foggy on this issue, too. Unfortunately, rules vary from state to state, making it that much harder to get advice.
I know it's a bad subject but I've been beating myself for an answer and figured I needed to ask those that have been doing it. (I understand that no one can give tax advise - I just would like to know how others are handling it).
We are working on getting our sales tax exemption (GA) but I'm told that we have to charge our "customers" sales tax and then pay it directly to the state. I do not recall ever having to collect sales tax when I was in school and have never been asked to pay sales tax when purchasing from others.
Is this something specific to Georgia? In researching the internet it looks as though other states also have this rule. Do your groups charge sales tax or is this something that is covered by the vendor of the product? (This all came up with having to pay "Original Works" the sales tax - for those people that were talking about it in the fundraising forum).
