Bill > S02142

This bill amends New York state tax law to create a sales and compensating use tax exemption for items sold for under $2 by school-based volunteer organizations such as parent-teacher associations, student organizations, and booster clubs. The exemption applies specifically to fundraising activities that support educational or extracurricular activities for students in kindergarten through 12th grade, and only when no third-party vendor is collecting sales tax on these transactions. This means that small fundraising items like bake sale goods, school spirit merchandise, or other low-cost items sold directly by school-affiliated groups would be exempt from sales tax, potentially making these fundraising efforts more financially beneficial for the organizations. The tax exemption will go into effect on the first day of January following the bill's passage into law.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S2142