ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.88.04. Exemption for Certain Sales by Elementary and
Secondary Schools, School Sponsored Clubs and Organizations, and School
Affiliated Groups.
(1) The term "elementary or secondary school" as used in Act No. 96-653
and in this regulation shall mean both public and private schools where
the curriculum consists of one or more of grade levels K through 12. The
term "elementary or secondary school" shall not include nurseries and day
care centers nor shall it include private schools at which the courses
of study are limited to specialized subjects such as dance, horseback riding,
music, cooking, or sewing.
(2) Provided the net proceeds from the sales are used solely for the
benefit of the elementary or secondary school, sales and use taxes do not
apply to sales by the following:
- (a) elementary or secondary schools,
- (b) nonprofit elementary or secondary school-sponsored clubs and organizations,
or
- (c) nonprofit elementary or secondary school affiliated groups, such
as parent- teacher organizations and booster clubs whose membership may
be composed of individuals other than students.
(3) The exemption outlined in paragraph (2) above also applies to sales
resulting from agreements or contracts entered into with resident or nonresident
organizations to participate in fund-raising campaigns for a percentage
of the gross receipts where students act as agents or salespersons for
the organizations by selling or taking orders for the sale of tangible
personal property. Neither the school, club, organization, or group enumerated
in paragraph (2) nor the resident or nonresident organization with whom
the school, club, organization, or group contracts is required to collect
or remit sales or use tax on the tangible personal property sold for fund-raising
purposes. (Adopted through APA effective November 5, 1996)
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