Connecticut

Agency: Dept. of Revenue Services

Contact Person/Department: Taxpayer Services Division

Tel. No. for Information: (860) 297-5962 (from anywhere), 1-(800) 382-9463 (in-state)

Tel. No. for Forms:  (860) 297-4753 (from anywhere), 1-(800) 382-9463 (in-state)

Fax No.: (860) 297-4929

E-mail: drs@po.state.ct.us

1. If your State exempts fundraising sales by certain groups from sales or use taxes, please indicate which of the following are exempt in your State.

Public Schools (K-12) - *

Private Schools (K-12) - *

School Groups (e.g., clubs, bands, teams) - *

PTAs - *

PTOs - *

Other parent groups  - * and **

Church Groups - **

Youth Sports League - *

501 (c)(3) organizations - **

501 (c)(6) organizations - **

Other (specify:) 501 (c)(13) organizations - **

* Sales of $20.00 or less, see 1b below.
** Up to five one-day events per calendar year, see 1b below.

1a Are local sales and use taxes in your State applied to these groups in the same manner as State sales and use taxes are applied to these groups?

N/A Connecticut does not have a local sales tax.

1b Please set forth any comments including a list of groups not listed above whose fundraising activities are exempt from sales and use taxation in your State.

*Sales of items for $20.00 or less by accredited elementary and secondary schools or eleemosynary organizations formed to sponsor and support youth activities are exempt. Conn. Gen. Stat. §12-412(26).   See also Policy Statement 2002(3), Sales and Use Tax Exemptions for Sale by Eleemosynary Organizations and Elementary and Secondary Schools.

** In addition, sales of goods by non-profit organizations at up to five fundraising events or social events of one day's duration during any calendar year are exempt, without any limit on the sales price of such goods.  Conn. Gen. Stat.  § 12-412 (94); see also Special Notice 98(11), Exemption from Sales and Use Taxes of Sales By Nonprofit Organizations At Fundraising Or Social Events.  Sales qualifying for this exemption do not include sales at retail establishments operated by nonprofit organizations.

Besides sales by the organizations listed above, Connecticut also exempts (i) sales of tangible personal property by public libraries and book sales by library organizations (Conn. Gen. Stat. § 12-412(24)); (ii) sales of items for not more than $100 by any nursing home, rest home, residential care home, convalescent home or adult day care center, provided that the sales are made through a gift shop located in such home or center and provided that any profits from such sales are retained by the home or center for the benefit of the patients of the home or the users of the center (Conn. Gen. Stat. § 12-412(56));(iii) sales of tangible personal property by historical societies (Conn. Gen. Stat. § 12-412 (98)); and (iv) among other sales made by hospitals, sales made through hospital gift shops operated by hospital auxiliaries located on hospital premises (Conn. Gen. Stat. §12-412(5)).  See Informational Publication 2002(11), Nonprofit Hospitals, Nonprofit Nursing Homes, Nonprofit Rest Homes, and Nonprofit Residential Care Homes. 

2. If your State exempts fundraising sales of certain products from sales and use tax, please indicate which of the following products are exempt.

ALL THE FOLLOWING ARE EXEMPT UNDER THE EXEMPTIONS DESCRIBED ABOVE.

Candies and Confections

Cookies and Other Baked Goods

Cheese Products

Meat Products

Nuts, popcorn and other snack food

All other edible items

Magazine subscriptions

Paper products (e.g., calendars, cards

stationery, books, gift wrap)

Decorative tins, baskets, other containers

Decorative novelties (mugs, ornaments)

Sundry items

Clothing and accessories

Jewelry

Plant and seeds

Other hard good items

2a Are local sales and use taxes in your State applied to these products in the same manner as State sales and use taxes are applied to these products?

N/A Connecticut does not have a local sales tax.

2b Please set forth any comments including a list of products not listed above that are exempt from sales and use taxation for fundraising purposes in your State.

The exemptions described in the response to 1b apply to any item of tangible personal property, as long as the requirements of the exemptions are met.

In addition, most sales of food and beverages, other than candy, confectionery, alcoholic beverages or carbonated beverages, are exempt without regard to sales price or the number of events per year;  see Conn. Gen Stat. § 12-412 (13).   Meals are not included in this exemption.  However, sales of meals at fundraisers may be exempt only if they qualify for one of the exemptions described in the response to 1b.

3. If some or all fundraising groups or products qualify for exemption from sales and use tax in your State, please indicate any exceptions to or limitations on such exemptions. (Check all that apply and specify the limitation.)
   
   See answer in 1b 

4. If some or all fundraising groups qualify for exemption from sales and use tax in your State, please set forth the procedure through which a group may establish its qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.
   
   See answer in  1b.
   
   Eleemosynary organizations that are not registered for collection of sales and use taxes must provide a completed copy of CERT-136, Purchases of Items by Eleemosynary Organizations and Schools That Will Be Resold Tax-Exempt for $20 or Less, to their suppliers to purchase items to be sold exempt from sales tax.  (If an organization is registered as a retailer, it must use a resale certificate instead of CERT-136.)
   
   Section 501 (c)(3) or (13)  nonprofit organizations may purchase items to resell at fundraising or social events exempt from sales tax by providing a completed CERT-119, Purchases of Tangible Personal Property and Services by Qualifying Exempt Organizations, to their suppliers.
   
   Governmental agencies may purchase items to resell at fundraising or social events exempt from sales tax by providing a completed CERT-134, Exempt Purchases by Qualifying Governmental Agencies, to their suppliers. 

5. If some or all fundraising products qualify for exemption from sales and use tax in your State, please set forth the procedure for establishing a product’s qualification for the exemption. Attach relevant statutes, regulations, procedures, etc.
   
   See Answer to 1b and 2b. 

6. In instances where a fundraising product or group is not exempt from sales or use tax, please indicate who bears the responsibility for collecting and remitting the tax.
   
   The nonexempt fundraising organization may make purchases using a resale certificate of items that it will sell if it is registered as a retailer.  The nonexempt organization must collect and remit sales tax from its customers on its subsequent sales of its products. The nonexempt entity must apply sales tax to the total sales price, including mark-up and profit.  If the nonexempt organization does not provide a resale certificate to the vendor, the vendor must collect tax on its sales to the organization. 

7. In instances where a fundraising product or group is not exempt from sales or use tax, what is the basis for calculating the sales/use tax?

The measure of tax is the price paid by the consumer to fundraising group.  The sales and use tax rate for sales of tangible personal property is 6%. 

8. Provide any additional information regarding the sales and use tax treatment of fundraising transactions and/or groups in your State. Also set forth any statements, disclosures, disclaimers, etc., to be provided as part of the clearinghouse regarding your state’s practices and procedures. Attach additional sheets if necessary.
   
   This information may be referred to for general guidance by taxpayers and tax practitioners.  The Taxpayer Services Division is available to assist with more detailed questions at 1-800-382-9463 (toll free within Connecticut), or 1-860-297-5962, or by email at drs@po.state.ct.us.  Documents referred to herein may be found on the DRS website, www.ct.gov/DRS.