Most PTA’s file on an annual basis so this form is due on returns are due on January 20 for the previous calendar (January-December) year. If the due date falls on Saturday, Sunday, or a legal holiday, the return may be postmarked on the next business day and still be considered timely. The return must be filed if you have a permit, even if you have no sales tax due during the reporting period.
The following items are not subject to sales tax:
● PTA food sales made at a PTA fundraising event are exempt from sales tax unless the PTA is in direct competition with a retailer required to collect sales tax. In this circumstance, the PTA would be required to collect sales tax as well.
● There is no tax on admission tickets (including those at carnivals); fees or raffle tickets provided all the proceeds go directly to the PTA. Student directories, yearbooks, cookbooks, and any other publications of the PTA are exempt from sales tax.
Total sales will equal the amount of PTA receipts as a result of the sale of tangible property. PTA membership dues, an admission price to an event or donations are not considered sales. Total sales will be the accumulation of the income from items such as spirit wear, school supplies, cookie dough sales and school store merchandise.
Taxable sales are those sales that are held and the PTA collected tax. Any taxable sales that occurred during the two tax-free days would not be included in this calculation as well.
In escrow accounting the accounting entry doesn’t balance because the Texas Comptroller requests computation on income in whole dollars only, there will be a difference in the amount collected and what is remitted to the Texas Comptroller. In addition, there is a .05% deduction for paying timely. Once sales tax is paid, there is always a small amount left in sales tax escrow that remains as a part of the PTA’s income. The PTA should zero out the balance in the sales tax escrow account and increase the donations income by that same amount.
Please contact the ACPTA treasurer if you need additional information on the Texas Sales Tax Return process