New Sales Tax Requirements
As Ií´m sure you know, in the recent special session, the State Legislature initiated major changes in the stateí´s sales tax requirements as of April 1, 2016. Unfortunately, these changes will have an impact on CHS and some of its policies and procedures as they relate to school-related sales.
Prior to April 1, 2016, CHS was exempt from paying sales tax on food items re-sold to students, on technology purchases for instructional purposes, on bookstore sales and numerous other smaller transactions. However, with the recent change, the school will now be required to collect sales tax on many of these types of transactions.
As you might suspect, there is still quite a bit of confusion at the state level regarding the implementation of this change. I can assure you, we are gathering information as quickly as possible to clarify any uncertainties regarding which transactions will be included, and which school policies or procedures (if any) need to be adjusted. We will certainly communicate any changes that must be made.
In the meantime, if you have any questions or concerns, please do not hesitate to contact me.
Below is a preliminary list of items we believe will be affected by the new sales tax requirement:
Sales Tax Must Be Charged:
« Parking fees
« Food sales (at the point of sale, not when money is deposited on a student account)
« Bookstore sales
« Sale of instructional items (books, supplies, etc.) even if not sold in the bookstore
« Athletic events
« Concessions sales at events
« Dances, plays, concerts, etc. that charge admission
« Alumni event entry fees
« Mothers’ Club and Mení´s Club events
« Anything sold by clubs on campus
« Sport program sales
« Spirit packs sales (unless CHS has paid sales tax on the items upon purchase)
« Sale of yearbooks