New guidelines for purchases and tax exemption  |

Dear Melissa,

As we get ready for Fall, we want to introduce a new policy to reduce confusion about collecting sales tax at your Fair.

To meet tax obligations for your school and Scholastic, starting this July, we’re requiring schools to collect sales tax for all purchases at their Fairs. Does your school have tax-exemption paperwork on file with us? Then you can avoid sales tax on purchases made by your school with school funds for school use. That’s the only exception.

We’re making this requirement easy to follow. Most importantly, the register that comes with your Fair will calculate the correct sales tax amount for every purchase. Here’s what else you’ll notice at your next Fair:

• We’re updating the Certificate of Agreement. It’s coming soon to your Chairperson’s Toolkit!
• For every tax-exempt purchase, your register will ask you to certify that the transaction qualifies for exemption.
• After the Fair, your financial form will note the amount of sales tax that you should have collected.

Start with these FAQs. Look out for more online resources coming soon to simplify collecting sales tax at your next Fair. Got questions in the meantime? Your Fair Consultant is ready with answers and advice.

Gratefully,