Workingmom, you need to check this out further. It's not quite that simple. If the PTO is raising funds by selling things, in Texas you need to apply for a sales tax exemption. If that is granted, then you are allowed 2 tax free days per year as a tax exempt nonprofit. (So if you had a catalog sale, you'd count the day all the funds are turned in as one of your two days.) Obviously, you want to pick the two biggest taxable events to earmark as your two. Other things, like the T-shirts you mention would be taxable. It can get a bit complicated as to what's taxable and what's not - especially if you sell food (i.e., concessions). Example, if you prepare the food yourself and sell it (spaghetti dinner), it's not taxable. If you buy it and re-sell it (pizza), it probably is taxable.

Here's a link to some information www.cpa.state.tx.us/taxinfo/taxpubs/tx96_122.html

I was told by our district tax advisor that here in Texas nothing is taxed unless it is a year round fundraiser (ie: shirts sold from the first day to the last day of school). Regular brochure fundraisers and the like would not be taxed. Check with your state's Secretary Of State (SOS) -they are probably on the web!

charla,
for california you have to file a separate form to get out of collecting sales tax. our pto has its own exempt status and corporation number. just call your secretary of state office or look on their web site for nonprofit groups and you should be able to get the information you are looking for.
lisa:)

Do you have to collect sales tax on items you sale or can you function under your schools tax exempt number. Does your pto have to have it's own tax exempt status?