I Have Read the Threads, but I Am Still Confused.

[krzymomof4]

My director is MIA ,so to speak, so I figured I would come to the best source of info...MY PEEPS!(lol)
I have a great opportunity to do a funraiser for the band at our school. There will be over a 100 kids participating and they seem excited about it because they are tired of the popcorn, candy, etc. And their sales seem to be showing it.
My question is this..They are a tax exempt organization. I have read our policies on this and it says that if individuals purchase they must pay sales tax. Here is the proposed question. In all there other fundraisers, the customer makes their payments out to the band boosters and they in turn write a check to the vendor or consultant. They don't want to not follow the laws and I am totally lost.
HELP!! Quick answers would be appreciated as to they are going to try to discuss this at their meeting tomorrow night.

Leslie

 

[cmdtrgd]

Who is receiving the products? The band for resale or the customer? If the band is purchasing products and reselling them, I'm not sure if that is kosher through PC. The warranty is not transferrable. If the customer is purchasing the products and the band is just the way the money gets to you, the tax is applicable.

 

[jrstephens]

In their other fundraisers there probably was not a warranty when it involved wrapping paper and popcorn and things and then they could do it b/c of that, but from what i understand of PC's rules and regulation they have to pay the same sales tax as any other individuals orders since the band is not the one actually getting the products. plus, as was just said the warranty is not transferrable. to be for certain i would call HO and that way you know for sure. or email them and then you have their response in writting in case anything ever comes up about it.