Booster clubs are not covered by a school's exempt status. But they can apply for exemption.
A booster club for a band, football team or similar group may qualify for a sales tax exemption on its purchases. After receiving exempt status, the club can hold two one-day tax-free sales or auctions each calendar year.
Tax-free sales days cannot be used when selling items for a for-profit retailer (such as candy, gift wrap or similar items), because the booster club is not considered to be the seller.
A booster club with a 501(c)(3) or (4) federal exemption is exempt from sales and franchise tax.
A booster club with a 501(c) federal exemption should complete Form AP-204, Texas Application for Exemption – Federal and All Others (PDF), and submit it, along with a copy of its IRS exemption letter, to the Comptroller's office.
If your application is approved, we'll send a letter or email notification. The notification includes links to print additional verification letters and the exemption certificate (Form 01-339, Texas Sales and Use Tax Resale Certificate (PDF)) to present to vendors.
When purchasing a taxable item, give the seller a properly completed exemption certificate to document the exempt sale.
If a seller chooses not to accept an exemption certificate, ask the seller to provide a properly completed Assignment of Right to Refund so the organization can request a refund of the tax directly from the Comptroller.