To qualify for tax exemption, youth sports organizations must be engaged exclusively in providing athletic competition among persons under 19 years of age. They are not automatically tax exempt, but can apply for state tax exemption.
A qualified youth athletic organization is exempt from sales and franchise taxes.
Complete Form AP-204, Texas Application for Exemption – Federal and All Others (PDF), and submit it with:
Unincorporated organizations must include a copy of the organization's governing document, such as the bylaws or constitution. The document must show that the organization is nonprofit. We will review the corporation's formation documents on file with the Texas Secretary of State to verify that the corporation's purpose is consistent with requirements.
Non-Texas corporations must also include a copy of the corporation's formation documents and a current Certificate of Existence issued by their state of incorporation.
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.