Colorado – Sales by Schools and School Groups

SALT Report 2879 – The Colorado Department of Revenue issued an FYI that addresses sales made by Colorado public and private kindergarten through grade 12 schools, school activity booster organizations, and student classes or organizations.

The publication provides that sales made by these schools and organizations are exempt from state sales tax if all proceeds from the sale are for the benefit of the school or school-approved student organization.

The only exception to this rule is that a portion of the proceeds can be used to pay for the actual cost of the items being sold.  However, the exemption does not apply if the proceeds are used to pay facility charges, such as space rentals, or for equipment, labor, transportation, meals, and insurance costs.

Additionally, the publication provides that proceeds from sales made by public school parent/teacher organizations are exempt if the association is a charitable organization and the school that it supports is a public school.

For Further Information

Colorado Department of Revenue – FYI Sales 86, Sales Tax Exemption On School Related Items