Multistate Tax Commission/Association of Fund-Raising Distributors & Suppliers   Massachusetts

Agency:  Department of Revenue

Contact Person/Department:  Rulings & Regulations Bureau

Tel. No.:  (617) 626-3250

Fax No.:  (617) 626-3290

E-mail:

  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

    (please identify)

    Church Groups

    Youth Sports League

    501 (c)(3) organizations

    501 (c)(6) organizations

    Other (specify:__________________)

    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. Sales to 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?

    Not applicable

    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.

     

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

Candies and Confections - Exempt (2)

Cookies and Other Baked Goods - Exempt (1)

Cheese Products - Exempt

Meat Products - Exempt

Nuts, 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?

Not applicable.

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.

No specific products are categorically exempt for fundraising purposes, but such products may be exempt when sold in casual and isolated fundraising sales. See Casual and Isolated Sales regulation 830 CMR64H.6.1.

 

  1. 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.)

    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

    Other____________X_____________________

    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.

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  3. 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.

    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.

  4.  

  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.

    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.

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  7. 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 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."

  8.  

  9. 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?

    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.

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  11. 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.

Last Updated: September 2006