Does a parent-teacher association collect Kansas sales tax when it sells admission tickets, and can it buy the tickets tax-free?

Plain-English summary

A parent-teacher association asked how Kansas sales tax applies to its sales, particularly the sale of admission tickets. The Department drew a line between selling property and providing a taxable service.

The exemption — and its limit. K.S.A. 79-3606(yy) exempts "all sales of tangible personal property and services purchased by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization." The key point: on the selling side, the exemption reaches only sales of tangible personal property, not the providing of a taxable service.

Property sales vs. admission-ticket sales. "[I]f the tangible personal property is sold on behalf of a parent-teacher association or organization, then the sale of tangible personal property would be exempt from sales tax." But "if the service of selling admission tickets is rendered to the final user, by or on behalf of a parent-teacher association or organization, the respective organization would be obligated to collect the appropriate Kansas sales tax(es)." The reason: "the statute exempts only the sale of tangible personal property and not the providing of a taxable service." Selling admission to an event is a taxable service (an admission), not a sale of goods, so it falls outside the (yy) exemption.

The buying side stays exempt. "In either case, the parent-teacher association or organization would be able to purchase the respective tickets from [the vendor] exempt from Kansas sales tax(es)." So even though the PTA must collect tax when it sells admission to the final user, it does not pay tax when it buys the tickets.

Bottom line: a PTA's sale of goods is exempt, but its sale of admission tickets to the public is a taxable admission on which it must collect tax — while its purchase of those tickets from the vendor is exempt.

What this means for you

Parent-teacher associations selling admissions

When you sell admission tickets to the people who will attend the event (the final users), you must collect and remit Kansas sales tax on those admissions — the PTA exemption does not cover taxable services. You can still buy the tickets themselves from the vendor tax-free.

PTA merchandise and goods sales

Your sales of tangible personal property — merchandise, goods, fundraiser items — by or on behalf of the PTA remain exempt under K.S.A. 79-3606(yy). The taxable-admission result is specific to selling a taxable service, not goods.

Distinguish goods from admissions

The dividing line is what you are selling: tangible personal property (exempt) versus a taxable service such as an admission (taxable to the final user). Classify each revenue stream on that basis rather than assuming the PTA's status exempts everything it sells. (Compare P-1999-194, where a PTA's purchases and its sales of tangible personal property were both exempt.)

Common questions

Q: Does a PTA charge sales tax on admission tickets?
A: Yes, when selling admission to the final user. Because "the statute exempts only the sale of tangible personal property and not the providing of a taxable service," the PTA "would be obligated to collect the appropriate Kansas sales tax(es)."

Q: Can the PTA buy the tickets tax-free?
A: Yes. "In either case," the PTA "would be able to purchase the respective tickets from [the vendor] exempt from Kansas sales tax(es)."

Q: Are the PTA's sales of goods taxable too?
A: No. Sales of tangible personal property by or on behalf of the PTA are exempt under K.S.A. 79-3606(yy); only the taxable-service (admission) sale is taxed.

Citations and references

• K.S.A. 79-3606(yy) — exempts a parent-teacher association's purchases and its sales of tangible personal property, but not the providing of a taxable service; the basis for taxing admission-ticket sales while exempting ticket purchases and goods sales.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1999-185

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

August 17, 1999

TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT
TTTTTTTTTTT

Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter dated July 23, 1999, regarding the application of Kansas Retailers'
Sales tax.

This is a private letter ruling pursuant to K.A.R. 92-19-59.

K.S.A. 79-3606(yy) exempts from sales tax: "all sales of tangible personal property and services purchased by a
parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such
association or organization."

Please be advised that if the tangible personal property is sold on behalf of a parent-teacher association or
organization, then the sale of tangible personal property would be exempt from sales tax in the State of Kansas.
However, if the service of selling admission tickets is rendered to the final user, by or on behalf of a parent-teacher
association or organization, the respective organization would be obligated to collect the appropriate Kansas sales
tax(es). The reason that the latter transaction would be subject to sales tax in this state is that the statute exempts
only the sale of tangible personal property and not the providing of a taxable service. In either case, the parent-
teacher association or organization would be able to purchase the respective tickets from TTTTTTT exempt from
Kansas sales tax(es).

This response private letter ruling is based solely on the facts provided in your request. If it is determined that
undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and
void. This private letter ruling will be revoked in the future by operation of law without further department action if
there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially
effects this private letter ruling. If I may be of further assistance, please contact me at your earliest convenience at
(785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

Date Composed: 09/14/1999 Date Modified: 10/11/2001

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