Student Organization Activities & Taxation
Student Organization Activities
When conducting activities, student organizations need to be aware of the various State and Federal laws governing income and the sale of goods or services. Many student organizations operate as unincorporated associations without formal recognition from the State of North Carolina or the Internal Revenue Service as a tax exempt non-profit organizations. This page will provide some helpful links for student organization leaders to navigate the various questions that may arise regarding sales and income taxes.
North Carolina Sales Taxes: Tangible Goods (including food sales)
Sales of tangible personal property and/or food are taxable in North Carolina requiring the seller to collect and remit sales tax to the State. The following link provides answers to frequently asked questions and addresses how an organization can register for a sales and use tax account in addition to what rate to charge, and how and when to remit taxes to the state: http://www.dornc.com/faq/sales.html
North Carolina Sales Taxes: Admissions and Tickets
Effective January 1, 2014 sales tax is to be charged on admission to entertainment activities. Entertainment activities are defined as any: live performance or event, motion picture or film, sporting event, museum, cultural site, garden, exhibit, show, guided tour, or any admission expense to view or watch an event for entertainment purposes. Amenities, such as parking, access to services, or food, when included in the cost of a ticket are not taxable.
For University funded organizations tickets sold as a fundraising event and an ASU facility is used the student organization will be required to sell tickets through a university agency fund. Proceeds from the ticket sales will be deposited into the agency fund and the University will remit the tax on ticket sales.
All other student organizations will be responsible for collecting and remitting sales tax as specified by the facility use agreement. The following link provides additional information regarding sales taxes on admissions: http://controller.appstate.edu/accounting-resources
North Carolina Other:
The link below discusses state taxation and nonprofit organizations:
Federal taxation resources:
The following links provides information federal taxation: