TSSN-31

Eleemosynary Organizations and Accredited
Elementary and Secondary Schools

This TSSN is superseded by PS 2002(3)

As of July 1, 1990, the sale of items for not more than $20 sold for the purposes of youth activities by eleemosynary organizations and by accredited elementary and secondary schools are exempt from Sales and Use Tax. Prior to July 1, 1990, the exemption from Sales and Use Tax applied only to such sales of $5 or less.

The purpose of this Special Notice is to publicize a change in the Department's policy regarding the registration of eleemosynary organizations and elementary and secondary schools for Sales and Use Tax. The Department has required all eleemosynary organizations and elementary and secondary schools that sell items, to register for collection of Sales and Use Tax. As of July 1, 1990, only such organizations selling items costing $20 or less will not be required to register, provided that the items sold are for the purpose of raising money for youth activities.

Registration to Collect Sales and Use Tax

As of July 1, 1990, eleemosynary organizations formed to sponsor and support youth activities and accredited elementary and secondary schools whose sales are exclusively of items costing $20 or less sold for the purpose of raising funds for youth activities are not required to register with this Department to collect Sales and Use Tax. Those organizations and schools that sell any items costing more than $20 are required to register with the Department and to collect Sales and Use Tax on each such taxable sale.

Resale Certificates

Organizations that are registered for collection of Sales and Use Tax with the Department may purchase those products which they resell in the regular course of business without the payment of Sales Tax by issuing a valid Resale Certificate, Regulation 1, to the suppliers of these items.

Certificate of Exempt Sales

Qualified eleemosynary organizations and accredited elementary and secondary schools that are not required to register with the Department may also purchase those products which they resell without paying Sales Tax by issuing a valid Certificate of Exempt Sales by Youth Groups and Schools to suppliers of these items. The certificate must be issued to the seller each time the charitable organization or school conducts a sale of items for the purpose of raising money for youth activities.

Examples of Qualifying Eleemosynary Organizations

The following organizations are examples of qualifying eleemosynary organizations: boy and girl scouts, parent teacher organizations, boys and girls clubs, little leagues, pee wee football, 4-H clubs, camp fire girls, Junior Achievement.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Web home page.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

TSSN-31
New 7/90