What's happening
This bill exempts items under two dollars sold for school-based fundraising from sales tax when not sold by third-party vendors.
Why it matters
Reduces fundraising costs for school groups. By exempting small, under-two-dollar items from sales tax, parent-teacher associations, student organizations, and similar groups can keep more of the money they raise, making fundraising efforts more effective for school activities.
Helps support extracurricular and educational programs. The exemption is specifically aimed at organizations that contribute to student life and activities for K-12 students, potentially making it easier to fund things like field trips, clubs, and sports.
Targets direct, community-led fundraising. The exemption only applies when there’s no third-party vendor involved, encouraging direct involvement by school communities rather than outsourcing fundraising to external companies, which often take a portion of proceeds.
Prioritizes affordability and accessibility. By focusing on low-cost items, the law is likely to benefit fundraisers that are inclusive and accessible to a broader range of families, helping ensure all students can participate in school-supported events and activities.
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Who cares
Headline styles
No Tax on School Fundraisers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
315
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to granting a sales and compensating use tax exemption for certain goods sold for the purpose of fundraising organized by school-based volunteer organizations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 45 to read as follows:
(45) School-based organizations; any item sold for a cost of under two dollars and for the purpose of fundraising sponsored or promoted by a parent-teacher association and/or student organization, booster club, or similar school-based association, which supports the functioning and viability of educational or extracurricular activities by impacting student life between grades K through twelve, when there is no thirdparty vendor collecting a sales or compensating use tax through such sales.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01413-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to granting a sales and compen- sating use tax exemption for certain goods sold for the purpose of fundraising organized by school-based volunteer organizations
Purpose or general idea of bill
Makes any item sold for the purpose of fundraising by school related fundraising entities under $2 tax free.
Summary of specific provisions
Adds a new paragraph 45 to subdivision (1) of section 1115 of the tax law to state that any item under $2 sold for the purpose of fundraising sponsored or promoted by a PTA, or student organization, booster club, or similar school based association which supports education or extra- curricular activities for grades k-12 shall be tax free.
Section 2 is the effective date.
Justification
PTAs, drama clubs, sports teams, these are a few of the common entities in schools that use fundraising as a tool to support their activities. These groups are run by volunteers whether it be students, teachers or in a few instances parents. Requiring them to collect and remit payment for items under $2 is burdensome and unnecessary. Funds raised from these events are a form of fundraising to support the group, not aimed in making a profit. Removing this bureaucratic hurdle will go a long way towards improving the outcomes these groups seek to achieve.
Prior legislative history
None.
Fiscal implications for state and local governments
Minimal.
Effective date
This act shall take effect January 18t next succeeding.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.