Agency:  Department of Revenue

Contact Person/Department:  Rulings & Regulations Bureau

Tel. No.:  (617) 626-3250

Fax No.:  (617) 626-3290

E-mail:

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)

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.)

   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.

 

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.

   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.

 

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.

 

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 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."

 

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?

   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.

 

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.