Does a school support group that acts as the functional equivalent of a parent-teacher organization qualify for the Kansas 79-3606(yy) exemption?

Plain-English summary

Effective July 1, 1998, K.S.A. 79-3606(yy) exempts all purchases of tangible personal property and services by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such an association or organization. A school support group asked whether it qualifies.

On the facts supplied, the school had no PTA or PTO, and this group was the sole parent organization — the functional equivalent of a parent-teacher organization. It raises funds to buy curriculum materials and equipment used for educational purposes, and its by-laws state the objective of encouraging parental participation in the education of children. Based solely on that information, the Department concluded the group is exempt under 79-3606(yy): it is not required to charge sales tax on its sales of tangible personal property and taxable services, and it does not pay sales or compensating tax on items it consumes.

(A companion ruling issued the same day, P-1999-60, reached the same result for another school's sole parent group on materially identical facts.)

What this means for you

If your group functions as a school's parent-teacher organization, the 79-3606(yy) exemption can apply even if it isn't literally named "PTA" or "PTO."

• The exemption covers both sides. 79-3606(yy) exempts the organization's purchases and its sales of tangible personal property.
• "Functional equivalent" can qualify. Where the school has no PTA/PTO and the group is the sole parent organization doing PTO-type work (fundraising for curriculum/educational equipment, encouraging parental involvement), the Department treated it as within 79-3606(yy).
• No tax on consumed items. The group does not pay sales or compensating tax on items it consumes.
• Facts and documentation matter. The ruling rests on the information supplied — the school having no PTA/PTO, the group's fundraising purpose, and its by-laws. A group that is really a booster or other support club, not the parent-teacher organization, may be treated differently.

Common questions

Does a group have to be called "PTA" or "PTO" to be exempt?
No. The Department found a group that was the school's sole parent organization and the functional equivalent of a PTO qualified under 79-3606(yy).

What does the exemption cover?
Both the group's purchases of property and services and its sales of tangible personal property — and it owes no tax on items it consumes.

When did this exemption take effect?
K.S.A. 79-3606(yy) became effective July 1, 1998.

Can any school support club rely on this?
Not directly. A private letter ruling binds the Department only for the requesting taxpayer and stated facts; a club that isn't the parent-teacher organization may not qualify (compare rulings denying the exemption to booster clubs).

Citations and references

• K.S.A. 79-3606(yy) (effective July 1, 1998) — exempts all purchases of tangible personal property and services by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization. The Department applied it to a group found to be the functional equivalent of a PTO.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1999-63.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

March 12, 1999

XXXXXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXXXXX

RE: XXXXXXXXXXXXXX

Dear XXXXXXXXXXXX:

The purpose of this letter is to respond to your letter received by this office on October 19, 1998.

Effective July 1, 1998, K.S.A. 79-3606(yy) exempts all purchases of tangible personal property and services by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization.

In your letter you stated:

The XXXXXXXXXXXXXXXXXX is the sole parent organization. The school does not have a parent teacher association or parent teacher organization.

The XXXXXXXXXXXXXXXX is the functional equivalent of a parent teacher organization. The club raises funds to purchase curriculum materials and equipment used for educational purposes.

The XXXXXXXXXXXXX By-Laws provide for the objective of encouragement parental participation of parents in the education of their children.

Based solely on the information supplied by you, it is the opinion of the Kansas Department of Revenue that the XXXXXXXXXXXXXXX is exempt from sales and compensating pursuant to K.S.A. 79-3606(yy). Your organization is not required to tax sales of tangible personal property and taxable services or pay sales tax or compensating tax on items consumed.

This 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 make 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 a published revenue ruling, that materially affects this private letter ruling.

Sincerely,

Mark D. Ciardullo
Tax Specialist

cc Mr. Robert Clelland

Date Composed: 03/26/1999 Date Modified: 10/10/2001

Table 1

Table 2