Sales Tax Exemption

Attention: This only applies to Parent Teacher Associations(PTAs) in the state of Alabama

Being income tax exempt is not the same as being sales tax exempt.  Alabama PTA and it's local units are not sales tax exempt.  There is an important reason why Alabama PTA has never sought sales tax exemption.  As you are aware, public education in the State of Alabama is funded through sales tax revenues, so by seeking sales tax exemption, we would be taking funds from public education, which is not part of our mission. 

 

In reference to a request for Sales Tax Certificate Exemption for Statutorily Exempt Entities, 40-9-31 Schools or School Sponsored Organizations, the net proceeds from such sales are used solely for the benefit of children enrolled in PTA applying for Sales Tax Exemption.

 

You may use a sales tax exemption for fundraising purchases only.

For example, concession stand items or spirit wear.

 

If you would like to apply for a Sales Tax Exempt Certificate,

you can find the form on Alabama Department of Revenue website.

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If the Department of Revenue requests a letter of Determination to verify your IRS Not For Profit status, and you aren't sure what that is, please contact the office alabamapta@yahoo.com 

 

The Department of Revenue may also request the following before approving your applications.

• Official letter on letterhead from the school administrator stating that all proceeds raised will be used for the sole benefit of the school.

• Bylaws

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If you are granted sales tax exempt status, please read the instructions for use included with the approval letter. Sales Tax Exempt status must be renewed every year.

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NOTE: As a prerequisite to renewal of a certificate, the quadrennial report must be filed as required by law. These reports are not based on individual exemptions, but instead are required every 4th year. The last year was 2017.  So even if you have not had an exemption for 4 years, you will still need to complete on the year it is due. Sales Tax Exempt renewals will need to complete the report by Oct 31, 2021

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To complete the quadrennial report or manage your sales tax exemption, you will need to create a

My Alabama Taxes (MAT) account. See below.​

NOTE: The report should be available for you to file online beginning October 1, 2021, and will be deemed late if filed or submitted after October 31, 2021. 

Example of letter your PTA should have received either in the mail or in MAT.

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In order to access your exemption account and file the report, you will need to visit the MAT website at https://myalabamataxes.alabama.gov and create a MAT web profile (username and password).

 

If you already have a MAT web profile (username), you may add your exemption account to your current profile. You will find step-by-step instructions on how to create a web profile and how to add access to an existing account at:
https://revenue.alabama.gov/wp-content/uploads/2017/05/st-mat_info.pdf.