Question:  I am the ASB bookkeeper at a junior high school.  The junior high has a student store that sells prepackaged snacks and various school supplies.  Do I report the sales tax of the snacks?

Response:  Although school districts are exempt from federal and state income taxes, they must pay California sales tax on items they sell.  There is an exemption for ASB organizations from collecting the sales tax when the sales are irregular or intermittent, such as at football games or at annual events, but since student stores are open on a regular basis, their sales are taxable and the ASB organization is subject to the collection of sales tax on those sales.

There is a sales tax return must be completed and filed for the sales tax collected.  In many cases, since the district office also needs to file a sales tax return, many districts also include any sales tax due on the same form for the student store.  You should verify whether that is possible in your own district.

Additional information about sales tax can be found on the State Board of Equalization Website at www.boe.ca.gov.