Agency: Department of Revenue
Contact Person/Department: Rulings & Regulations Bureau
Tel. No.: (617) 626-3250
Fax No.: (617) 626-3290
Public Schools (K-12)
Private Schools (K-12)
School Groups (e.g., clubs, bands, teams)
Other parent groups
Youth Sports League
501 (c)(3) organizations
501 (c)(6) organizations
No Exemption. There is no categorical exemption for fundraising sales of tangible personal property by any of the above. However, fundraising sales by any of the above groups may qualify as "casual and isolated sales", under G.L. c. 64H, § 6 (c) provided that the requirements of 830 CMR 64H.6.1 (Casual and Isolated Sales regulation) are met. Please note that sales to government entities and agents purchasing on their behalf are exempt under M.G.L. c. 64H, § 6(d) and 830 CMR 64H.6.1. Salesto 501(c)(3) organizations and agents purchasing on their behalf are exempt under M.G.L .c. 64H, §6(e) and 830 CMR 64H.6.1.
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?
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.
Candies and Confections - Exempt (2)
Cookies and Other Baked Goods - Exempt (1)
Cheese Products - Exempt
Meat Products - ExemptNuts, popcorn and other snack food - Exempt (2)
Other edible items (please identify) - Exempt
Magazine subscriptions - Exempt
Paper products (e.g., calendars, cards stationery, books, gift wrap) - Exempt (3)
Decorative tins, baskets, other containers - Exempt (3)
Decorative novelties (mugs, ornaments) - Exempt (3)
Sundry items (please specify item below) - Exempt (3)
Clothing and accessories - Exempt (4)
Jewelry - Exempt Plant and seeds - Exempt
Other hard good items - Exempt (3)
(1) Sold in units of six or more for off-premises consumption. See Sales Tax on Meals Regulation 830 CMR 64H.6.5.
(2) Unless sold by a vending machine at a cost of $3.50 or more.
(3) Exempt if qualifying as casual and isolated sales - see Casual and Isolated Sales Regulation 830 CMR 64H.1.6.
(4) Subject to $175 limit per article of clothing or footwear. Exemption does not apply to special clothing primarily designed for athletic activity on protective use and which is not normally worn except when so used.
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?
Limits on number of fundraiser events per year
Limits on duration of fundraisers
Limits on dollar amount of each item
Limits on total amounts raised per year
There are no specific limits on the number or duration of fundraising events, and no specific limits on the dollar amounts that may be realized fundraising events. An organization may conduct any number fundraising events that qualify as casual and isolated sales, so long as the organization does not make sales of such property in the regular course of its business. See 830 CMR 64H.6.1 for general rules for determining whether sales are made in the regular course of business.
Sales to government entities are exempt under M.G.L. C.64H, § 6(d).
Sales to 501 (c)(3) organizations are exempt under M.G.L. C.64H, § 6(e). See 830 CMR 64H.6.1 for rules regarding sales to agents of these entities. See also attached statues, Technical Information Release 99-4, Administrative Procedure AP 101; forms ST-2, ST-5, TA-1.
While no products are categorically exempt by virtue of being sold in a fundraising transaction, many products may be exempt by virtue of an independent exemption provision found in G.L. c. 64H, § 6. See e.g., G.L. c. 64H, § 6(h), exempting food products for human consumption; See also DOR's publication A Guide To Sales and Use Taxes for illustrataive lists of such exempt items.
The fundraising group (e.g., school, PTA, church) and the company distributing goods to the fundraising group. Joint liability imposed on "retailers" per G.L. C.64H, § 1.
Under G.L. c. 64H, § 1 (Definition of "Retailer") "every salesman, representative, peddler or canvasser who, in the opinion of the commissioner, it is necessary to regard for the efficient administration of (Chapter 64H) as the agent of the dealer, distributor, supervisor or employer under whom he operates or from whom he obtains the tangible personal property sold by him, in which case the commissioner may treat such agent as the retailer jointly responsible with his principal, employer or supervisor for the collection and payment of the tax."
Sales tax is imposed on five percent of the gross receipts of a vendor from all sales at retail in the commonwealth of tangible personal property. G.L.c. 64H, § 2. The sales price is the total amount paid by a purchaser to a vendor as consideration for a retail sale, valued in money or otherwise.
Last Updated: September 2006