Student Activity Presentation
by your Central Treasurer Ann Bedard
? Student Activities seem very confusing! ? ? ? ? ? ? Dances Field Trips Sales Tax Deposits Student Sales Report Check Requests Inventory Report Transfer of Funds Club Officers Board Policies
There is much confusion, misconception and inaccurate information that you may have heard regarding Sales Tax and Student Activity Clubs
Clubs are not tax exempt!
*Excerpt from NYSED The Safeguarding, Accounting, and Auditing of Extraclassroom Activity Funds Finance Pamphlet 2 Revised 2008
Schools that are buying tangible goods to be used at school are tax exempt. For example text books.
All Student Activity Clubs are not tax exempt. This is a NYS law. If we did not claim Sales Tax it would be a $40,000.00fine.
But…. You can use a Resale Certificate to save money and not pay sales tax on what you buy.
For example, if you were buying gummy bears from Price Chopper to sell at a dance, you can give Price Chopper a Resale Certificate and you would just pay for the item.
Then you would not pay tax on the item that you are buying but would charge tax on the item you are reselling. Instead of paying tax on the item you bought and sold. Which is not the same as being tax exempt!
I have a ready supply of Resale Certificates, for any of the Clubs to use. I just need the name and address of the company where you are going to buy items. I will fill out the Resale Certificate, keep a copy on file and give you a copy.
Take the Resale Certificate to the store, go to the Courtesy Desk and submit. You may have to check out at the Courtesy Desk. Each store is different so ask before you check out.
The Resale Certificate only needs to be submitted once. If you are not sure if one is on file, check with me and I will look it up for you.
If an outside vendor will not except the resale certificate, you must pay tax to the vendor and pay tax on your profit or pay the tax on the total that you collect. On each deposit slip I would need to know how much you are paying for each item, how much you are charging for each and how many were sold.
For example- A club is buying key chains The vendor Keys Are Us will not except the resale certificate as they are an out of state company. The key chains cost $2.00 each plus tax for a total of $2.16. The club wants to make a profit of $3.00 each. If they charge $5.16 each their profit would seem to be $3.00, but the tax on the profit would be $.22 making their total profit $2.78. You would need to charge $3.24 plus the $2.16 for a total of $5.40. You are still paying the tax on the total amount just partially to the vendor and partially to NYS tax. If the vendor does not collect sales tax then you will need to pay the tax on the total amount.
The general rules on taxes are - taxes need only be paid once, at the value of the end user - and, if you or I would have to pay tax on the item/service at the local store, it's taxable to the student organization. Regarding tax on club T-shirts. If the club is buying the T-shirts for its own use (end user and not as a fund raiser), the club would pay the tax on the purchase (clothing), so the tax obligation has been met.
Proms/Dances If you are paying to an outside vendor (for example Franklin Plaza/Dutch Apple) they are collecting the sales tax and you do not have to pay sales tax. As long as you are not making a profit. Please contact me before you start collecting money for your event.
How do I know what is taxable?
Please refer to the Taxable/ Non-Table Chart. If there are any updates, I will email a new chart to you.
A good rule of thumb is- If you pay tax for an item at a store, you will have to charge tax when you are selling it.
Please remember that if you have any questions regarding Sales Tax after looking at the Sales Tax chart, please contact me. We can go over whether your activity is taxable before an event to eliminate surprises.
Sometimes the Sales Tax does not seem to be the correct amount. Why is that?
It is assumed you collected sales tax and that it is included in the total of the deposit.
Therefore on a $100.00 deposit you need to calculate the tax collected $92.59 in Sales X .08 Sales Tax Rate $ 7.41 Total Sales Tax Collected $92.59 in Sales + 7.41 Sales Tax $100.00 Total of Deposit
Club Voting & Minutes
Clubs must meet and take minutes. They must vote on how to spend money from their account, (a check or a transfer of funds) even if the profits are going to charity. Please use the following voting form. Fill it out, keep a copy and send a copy to me.
Student Activity Proposal and Voting ___________________________________ ________________________ Name of Club Club Number ___________________________________ Date of Meeting Proposition:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Number of Votes: ______ Yes ______ No ______ Abstained __________________________________ ________________ Class President Date __________________________________ ________________ Class Treasurer Date __________________________________ ________________ Class Advisor Date
Clubs must have a full slate of officers Secretary President Treasurer Vice President
At the beginning of the year fill out your Charter and Brenda will send a copy to me.
If there are two faculty advisors for a club, let me know which person should receive the paperwork.
HS Principal can sign paperwork if an officer is unavailable
FIELD TRIP INFORMATION The following must be completed by the advisor Please refer to the corresponding policy for more information. All requests for field trips must be submitted to the building principal. (Policy 3.180-07) If trip is over 100 miles it must be Board approved, 60 days in advance. (Policy 3.180-07) Written parental permission must be obtained for each student (Policy 3.180-07) If using non district buses, you need to contact the Head of Transportation so the buses can be inspected (Policy 9.185-05) Any chaperones that are not employees must have reference checks You will need to let the Secondary Principal’s office know in advance so that they can send out reference packets.
All chaperones that are not current employees and have not been fingerprinted by NYS Education must be fingerprinted. (Policy3.180-07)
If a trip is not part of the approved curriculum, if not all students are going, if the district is not paying for the trip with ordinary revenues (state aid or tax money) it is not a district event. If it is not a district event the district's tax exempt status can not be used.
BRUNSWICK CSD POLICY 3.195-06 WELLNESS POLICY All Foods and Beverages Available on School Campuses during the School Day: Students’ lifelong eating habits are greatly influenced by the types of foods and beverages available in their daily environment. In addition to ensuring that reimbursable school meals meet program requirements and nutrition standards, the Brunswick (Brittonkill) Central School District believes it must also establish standards or guidelines to address all foods and beverages sold or served to students, including those available outside of the school meal programs. Foods and beverages sold as part of school sponsored fundraising activities shall be nutritious and meet federal recommended guidelines. (see list below) Foods and beverages sold in snack bars and school stores shall be nutritious and meet federal recommended guidelines. (see list below) Foods: A choice of at least two fruits and/or non-fried vegetables will be offered for sale at any location on the school site where foods are sold. (This will include any concession stand at dances, athletic events, etc.) Such items could include, but are not limited to, fresh fruits and vegetables, 100% fruit or vegetable juice; fruit- based drinks that are at least 50% fruit juice and that do not contain additional caloric sweeteners; cooked, dried or canned fruits (canned in fruit juice or light syrup); and cooked, dried or canned vegetables (that meet the above fat and sodium guidelines).
Steps to complete a Student Activity Event
Fill out an Activity Fund Raising Activity Form
October 22, 2008 Monopoly Club 77777 Dog Washing X 11/1/08 11/1/08 11/1/08 Washing 50 dogs at $8.00 each 400.00 23.00 29.00 Dog Soap Towels 348.00 Bring it to the Secondary Office for Principal’s signature Tammy Teacher 10/22/08 Ms. Money Bags Mr. Prez 10/22/08 X Polly Principal 10/23/08 Step 1 Fill out a Fund Raising Activity Request Form Ms. Money Bags 10/22/08
Your event will be put on the Fund Raising Calendar by the Secondary Office. The Request Form is then sent to me.
You will need to put in your actual amounts of how much money you took in (including the sales tax) and your actual expenses.
October 22, 2008 Monopoly Club 77777 Dog Washing X 11/1/08 11/1/08 11/1/08 Washing 50 dogs at $8.00 each 400.00 280.00 23.00 29.00 Dog Soap Towels 17.73 32.50 348.00 229.75 Tammy Teacher 10/22/08 Ms. Money Bags Mr. Prez 10/22/08 X Polly Principal 10/23/08
Steps to follow when making a deposit