taxes

Youth Sports Organizations

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.

What kinds of exemptions is my youth sports organization eligible for?

A qualified youth athletic organization is exempt from sales and franchise taxes.

How do we apply for an exemption?

Complete Form AP-204, Texas Application for Exemption – Federal and All Others (PDF), and submit it with:

  • A copy of the rules and regulations of the competition (if a description of the coaches' responsibilities is not included, provide a statement with that information)
  • A statement confirming that no person 19 years of age or older will be allowed to participate in the competition at any time
  • A description of the type of athletic competition the organization provides
  • The date the organization began registering athletes for competition
  • The date of the organization's first athletic competition

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.

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.

We have other questions—where can we get answers?