Exempting certain school organizations from sales tax on certain items sold or resold and services provided for educational purposes

1 Co-sponsor

• Kenneth Zebrowski

BILL NUMBER:A10030

Title of bill

An act to amend the tax law, in relation to exempting certain school organizations from sales tax on certain items and services sold or resold for educational purposes

Purpose or general idea of bill

To allow certain organizations recog- nized by the school to raise funds without sales tax.

Summary of specific provisions

Section 1: Adds a new paragraph 10 to Subdivision a of section 1116 of the tax law to include any school organization officially recognized by the school board of a nursery, kindergarten, elementary or secondary school shall not be subject to the sales and compensating use taxes

Section 2: Adds a new paragraph 44 to subdivision a of section 1115 of the tax law listing tangible personal property, food, food products and beverages that are sold or resold and personal services provided by the school organization described in section 1 as exempt from sales and compensating use taxes where the goods and/or services are provided for educational purposes. Section 3: effective date

Justification

With the rising cost of education and cuts to school budgets on both the State and local level, parents and students are relying on fundraising events to help underwrite programs within the school.

Currently these groups are required to collect and remit sales and compensating use taxes to New York State. These requirements are seen as onerous to the students and parents and often deter groups from engaging in efforts to raise additional funds for educational programs.

The current fiscal situation in our State is making the use of fundrais- ing activities more important and imperative for our children's educa- tion.

The bill only exempts groups officially recognized by the school board. Currently the school works with these groups on existing fundraising efforts and are open to enforcement action if these groups do not appro- priately collect sales and compensating use taxes.

Prior legislative history

None. New Bill.

Fiscal implications

To Be Determined.

Effective date

Immediately.