taxes

Booster Clubs

Booster clubs are not covered by a school's exempt status. But they can apply for exemption.

What kind of exemption is my booster club eligible for?

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) federal exemption is exempt from sales and franchise tax.

How do we apply for an exemption?

Complete and submit Form AP-207, the Application for Exemption – Educational Organization (PDF), to the Comptroller's office. 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.

How do we use the exemption certificate?

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.

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