This is something I keep harping on and will continue to do so.
Check with your states to find out your obligations as an organization. Your state laws concerning corporations is the place to start. Most state laws on taxation are complicated. As Renegade says about Ohio that stuff is burried pretty deep in their laws and most lay people would not be able to find it without help, so contacting a CPA or seeing if one has a kid in your school and is willing to give pro bono advice is a must!
Yep, PTA/PTO's in several states are discovering that having "non-profit status" does not provide a blanket exemption against the payment of sales tax. We're in OH, and are provided tax-free status for 6 days, and everything else over those 6 days is taxable, with the exception of magazines, newspapers, food packed for retail, gift certificates, and food sold "carry-out".
In short, we must follow the same rules as any other business. Considering that we'd been thinking we were totally "Tax Exempt" for more than 5 years, this was quite a shock. I had to kick and scream to even get the group to look at this situation. Even so, they signed up for a fall fundraiser company that promised that they'd "owe zero tax". WRONG! Well, that took $1,000 off the top of the event.
Anyhow, the best rule of taxation for PTA/PTO groups is to contact your state or national organization for assistance/documentation, then confirm the veracity of the information from another source. If no state or national organization is available, then anonymously contact your State Tax Authorities and ask them how the sales tax laws pertain to nonprofits - they get calls like this all the time!
Very disturbing! You should seek advice from a CPA in your state that specializes in non-profit organizations. Are you incorporated and registered as a non-profit group in your state? In Illinois you can become exempt from sales tax as a non-profit organization when following the procedures set forth by the state Dept. of Revenue. You may be able to look on-line for information but your best bet would be to consult an experienced accountant.
I live in Idaho and our PTO just got a visit from the state tax commission. It seems that we are required to register as a "merchant" and pay sales tax on all fundraisers. This includes items such as Book Fairs profits, Ticket Sales, Carnivals, Auctions, Cookie Dough profits, etc.... We must even pay sales tax on money earned at bake sales where ALL items are donated by parents. Is this common? Our school is only in it's 2nd year of operation and has a very inexperienced PTO. Some of our board members are extremely upset that we are paying taxes on funds that are raised to subsidize the education that our state should be paying for in the first place - but enough politics . Is this something that other PTO groups are required to do?
. Is this something that other PTO groups are required to do? 
