Creating a New Organization
- Questions to Answer Before You Commit
- Creating Your Own Identity Overview
- Life Cycle of a Public Charity
- Incorporation of a Non-Profit Organization
Following the Rules
- Authoritative Guidelines Overview
- District Board Policy GE (Local)
- University Interscholastic League (UIL) Booster Club Guidelines
- UIL Brochure
- State Regulatory Information
- Federal Regulatory Information
Taking Care of Business
- Accounting Procedures
- Bank Accounts
- Receiving Contributions / Donations
- Giving Contributions/Donations
- Facilities Use/Rental
- Financial Aid Guidelines
- Fund-Raising for Individuals or Families
- Mailing Address
- Membership Dues
- Money Handling Procedures
- Paying and Reporting of Workers (District Employees or Others)
- Record Retention
- Sales Tax
- Student Fines and Fees List
- Treasurer's Report
For fund-raisers in which sales tax must be collected, the Booster Club can sell items at a certain price plus sales tax or sales tax may be included in the price. Including sales tax in the price and having the price an even amount such as $10.00 or $10.50 is an easy method to use; however, you need to be careful to avoid paying sales tax on sales tax.
If sales tax is included in the price of the items:
If your sales price included sales tax, you need to do the following calculation to determine your correct amount of sales and sales tax:
TOTAL FUNDS RECEIVED DIVIDED BY (1.0 + TAX RATE) = SALES AMOUNT EXCLUDING TAX
If total receipts are $1,000 including tax and the tax rate is 8 ¼ % or .0825.
$1,000 : 1.0825 = $923.79 Taxable Sales
$923.79 x .0825 = $76.21 Sales Tax
Your customer must be informed that sales tax is included in the sales price. A posted sign or a statement on a receipt indicating that tax is included may be used.
If sales tax is charged in addition to the price of the items:
If sales tax is not included in the sales price, then taxable sales equals the no. of items sold multiplied by the sales price. For example, if you sold 100 T-shirts for $10 each, the taxable sales is $1,000.
100 T-shirts sold X $10 = $1,000 Taxable Sales
Sales tax would then be calculated as Sales price multiplied by the tax rate. If you sold 100 T-shirts for $10 each, you would collect at least $82.50 in tax. There may be a little difference due to rounding.
$1,000 X .0825 = $82.50 Sales Tax