Accounting Office

ASB Directors/Primary Advisors

FR: Gina Zeutenhorst, Accounting Manager

Phone number: (425) 339 – 4653

Fax number: (425) 339 - 4324

DA: Monday, January 10, 2000

RE:

Fundraising Activities/New Sales Tax Regulations

In December 1999, the Department of Revenue issued Excise Tax Advisory 2004.04/08.167 on Fund-

raising Activities of Public Schools and Associated Student Body Groups. The advisory’s tax

interpretation results in savings for some specific ASB fund-raising purchases.

Effective immediately, all periodic fundraising activities conducted by qualified non-profit

organizations, that do not constitute the operation of a regular place of business (ie. Book store, thrift

shop, restaurant, student store, concessions, etc.), are exempt from paying sales tax. In short, this

means when you purchase goods for re-sale in an ASB fundraising activity, you no longer have to pay

sales tax on those purchases.

Please be aware, this only applies to items you are purchasing for resale in an ASB fundraiser. It

does not apply to other ASB purchases such as incidental supplies, uniforms, instruments, sports

equipment, etc. In addition, it is important to understand the exemption from sales tax is limited to

those purchases the ASB makes in its own name. The exemption does not apply if the ASB group

makes a purchase as an agent for a third party. The fundraising exemption does not extend to

purchases or sales made on behalf of non-qualifying organizations.

Directions for completing the Resale Certificate for a tax exempt ASB fund-raiser are as follows:

1) Prepare an ASB purchase order for the items you want to sell in your fundraising activity. Clearly

indicate on the purchase order, “FUNDRAISING ACTIVITY – EXEMPT FROM SALES TAX”.

2) On a copy of the attached “Resale Certificate”:

•

Complete line 1 – The seller’s name is the company you are going to buy goods from;

•

Complete line 2 – Your school’s name

•

Complete line 6 – Description of the items you are going to sell during the fundraiser;

•

Check the appropriate certification box (

for resale during a tax exempt fund-raising activity)

•

Print the name of the administrator who signs the purchase order;

•

Have the administrator sign and date the resale certificate.

3) Send the Purchase Order along with a copy of the resale certificate to the vendor.

4) Attach a copy of the resale certificate to the yellow copy of the Purchase Order, and forward to the

Accounting Department.

5) When the invoice arrives, review to ensure the vendor did not charge Washington State sales tax.

Please make copies of the attached resale certificate so that you will have an adequate supply on

hand