taxes

Parent-Teacher Organizations (PTOs)

PTOs, as well as parent-teacher-student organizations (PTSOs), are generally not covered by a school's exempt status. But they can apply for state tax exemption.

What kinds of exemptions is my PTO eligible for?

PTOs are eligible for sales and franchise tax exemptions. Once approved, a PTO may buy tax-free goods and services that further the organization's exempt purpose.

How do we apply for an exemption?

PTOs that are affiliated with their national organization should submit Form AP-207, the Application for Exemption - Educational Organization (PDF), and a letter from the parent organization confirming the affiliation (or provide a web address for the parent organization where this information can be verified).

PTOs that are not members of the national organization should complete the same application and provide a copy of the organization's governing document (Certificate of Formation or Certificate of Registration).

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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