Fundraising & Sales Tax
Sales Tax Exemption on the Sale of Products
Charitable organizations that make retail sales are subject to the same licensing requirements of other retailers unless all of the organization’s sales are exempt from taxation.
Occasional retail sales of tangible personal property made by a charitable organization are exempt from collecting and remitting sales tax, if all of the following conditions are met:
- The sales are made for fund-raising purposes
- The funds raised by the sales are retained by the organization to be used in the course of the organization's charitable service
- The organization conducts sales for a total of 12 days or less during the calendar year
- The net proceeds of such sales do not exceed $25,000 during the calendar year.
See FYI Sales 2 for additional information regarding sales made by charitable organizations. Visit the Sales Tax Licensing page to apply for a state sales tax license if you do not meet all of the criteria above.
Sales made by schools, school activity booster organizations, and student classes or organizations are exempt from state sales tax if all proceeds of the sale are for the benefit of a school or school-approved student organization. A “school” includes both public and private school for students in kindergarten through twelfth grade or any portion of those school grades. [§39-26-725(2), C.R.S]
Preschools, trade schools, and post-secondary schools (colleges and universities) are not eligible for this exemption. For more information, review FYI Sales 86.