Extra Class / Club Accounts are subject to New York State Sales Tax for ALL taxable fundraisers. A financial record (statement of Budget-Profit and Loss) should be kept for all deposits and expenses associated with ALL fundraisers. The statement of Budget-Profit and Loss Statement should be kept with your club records and in the case of taxable fundraisers the form must be submitted to the main office secretary (Mrs. Weaver HS, Mrs. Doepel MS). A Statement of Budget-Profit and Loss has been added to your account books in the HS to use when completing a taxable or non-taxable fundraiser. You don’t have to collect tax during the fundraiser. The District Office Treasurer will let the main office know how much tax is taken out of your account and the main office secretary will send a copy of the Budget-Profit and Loss Statement to the advisor showing the amount of tax charged in the bottom right-hand corner. This amount should be entered into your club account books by the club’s treasurer.
Not all fundraising is taxable (see samples below). When pricing your items for re-sale, roughly 7% HS and 8% MS, will be going to pay tax for taxable fundraisers. You may want to increase the price of the items you are selling based on this information. When Vendors charge you tax up front when purchasing their items for resale, we only pay taxes on the profit made on the fundraiser (no Resale Certificate given to vendor, and the Receipt obtained from the Vendor would show that taxes were paid). When Vendors do not charge you tax up front when purchasing their items for resale, we pay taxes on the entire amount collected (a Resale Certificate required and Receipt obtained from Vendor would show no taxes paid). Please see example given below regarding taxes. If you have questions, please feel free to ask me (Mrs. Weaver-HS; Mrs. Doepel-MS).
A. You buy $1,000 worth of candles from company ABC. You give company ABC a Resale Certificate and company ABC doesn’t charge you tax and gives you a receipt showing the purchase of: 100 candles @ $10 each = $1,000.00
Your club sells 100 candles for $15.00 each = $1,500.00
Your EC account will be charged tax on the entire sale price
The district will deduct $105.00 from your EC Account for tax on this fundraiser.
B. You buy $1,000 worth of candles from company ABC. Company ABC charges you tax. You don’t provide them with a Resale Certificate and your receipt shows the purchase of:
You club sells 100 candles for $15.00 each = $1,500.00Your EC account will be charged tax on the profit ($1,500 less $1,000 = $500)
The district will deduct $35.00 from you EC Account for tax on this fundraiser.
Total tax paid= $105.00 ($70 up front and $35 after resale)
**Note: Regardless of which option you choose the tax will always be the same.