The PTO is considered to be a 501(c)(3) organization, exempt from Federal income tax. Our Tax ID is 75-2244848. We file an annual information return called a Form 990 with the IRS. We have also been registered with the State of Texas as an organization exempt from Texas sales and use tax. This means that we do not have to pay income tax, nor do we have to pay sales tax on items that we purchase from others. Please see our IRS determination letter.
However, we DO have to collect sales tax (8.25%) on items that we resell, such as our spirit items and school supplies. The only exception is that as a 501(c)(3) organization we are allowed to designate two calendar days during the year as tax-free days. CMSW PTO uses its two tax-free days for its August school supply sale. All other sales of school supplies and spirit items are taxable. Note that there is a second exemption that applies to meals and food products, so we do not have to collect sales tax when selling hot dogs, popcorn, baked goods, etc.
When purchasing tax exempt supplies for the PTO, the buyer may be asked to present a sales tax exemption certificate. The buyer can print and complete a Tax Exemption Form and provide the form to the vendor.
For more info regarding sales taxes in Texas, please visit the Texas Comptroller web site (Form 96-122).
Cash Handling Procedures
The PTO has documented procedures in place for handling cash and checks. Any request for reimbursement or refund is handled using the check request form below.