Regulation 3450 – Sales Tax

Suppliers or retailers selling rings, pictures, sweaters, jackets, school annuals, musical instruments,
shoes and similar items, or renting gowns, caps and other items which are for personal, individual
benefit and use of a student, should include and collect the sales or use tax on such sales or rentals.

Purchase orders will designate if purchases are for school purposes and not for students’ individual
and personal ownership. If the purchases are for the school’s purposes as part of its regular
educational activities, no tax should be collected by the sellers. (Examples of nontaxable purchases:
books, desks, school supplies and equipment; diplomas, medals, awards or cups; athletic, musical or
other equipment and supplies purchased for the athletic and other departments; and items for the
general use by or benefit of all students entered or engaged in regularly sponsored school athletic or
other educational programs, classes, events or activities.)

Operators of vending machines or commissaries located in schools, but not operated by the schools
or any school group, are required to report the tax on the gross receipts from these vending machines
or commissaries operated by them (retailers).

Tax will not be collected on admissions charged to school plays or entertainment sponsored as a part
of the regular school program, as such activities are considered occasional in nature. However, when
entertainment or programs are put on by individuals, entertainers or groups who make this a business
and receive as compensation a portion of the net receipts, then the sales tax must be collected on the
admission charge even though sponsored by the school, and the profits, if any, are intended to be
used for school purposes.