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Sales tax exemptions for school fundraising sales discussed 2/27/20

Sales tax exemptions for school fundraising sales discussed 2/27/20


BEGUN; THANK YOU VERY MUCH. REP PRESENTED WE HAVE ACTUALLY 2 BILLS THAT ARE THE SAME. REPRESENTED HEWITT I THINK REPRESENT IT SANDSTEDE WILL BE HERE BUT WE’RE GOING TO DO IS REMOVE. HOUSE FILE 33. 20 WHICH IS THE HEWITT BILL AND GO THROUGH NORMAL. EVERYTHING TESTIMONY SO FORTH. THEY WILL COME BACK AND DO JUST KIND OF A. ROUTINE AND HOUSE ABOUT 33 62 BECAUSE THE IDENTICAL BILL WILL MOVE OUT WHEN TO FOLD. YEAH IT WILL HELP BOTH AUTHORS SPEAK AT THAT POINT REPRESENT LEFT THE CAR YOU WANT TO. REPRESENT LESS THE MOVES SOFT HOUSE POE 33 TO 20 TO BE LAID OVER FOR POSSIBLE INCLUSION INTO THE OMINOUS REPORT. REMEMBER THAT YOU WELCOME TO THE COMMITTEE.>>THANK YOU MISTER CHAIR AND MEMBERS THIS IS A REALLY GOOD I PERSONALLY I’M INVOLVED WITH CONCESSIONS OF MY OWN SCHOOL DISTRICT SO WHAT THIS WILL DO IS BASICALLY EXEMPT THE SALES FOR FUND RAISING BY CERTAIN STUDENT ORGANIZATIONS; THESE ORGANIZATIONS ARE SIMILAR TO THE SALES THAT CONCESSIONS SPEAR AT THE ELEMENTARY LEVEL; THE SECONDARY ORGANIZATIONS FOR THE ACTIVITIES SPORTS IN A DIFFERENT STUFF LIKE THAT AND I’M YOU KNOW THE FISCAL MCCAIN BACK ON THIS YESTERDAY AT AROUND 700;000 THAT’S THREAT THROUGHOUT THE STATE. YOU KNOW SOME OF THESE DISTRICTS ONLY OF THIS IS MAYBE LIKE 35 TO $40. BUT AS HE LEFT EMPTY. AS REPRESENTED FABIAN KNOW $35 THE DIFFERENCE BETWEEN A BUS LEAVING FOR WITH THE TEAM ON IT NOT. THE SCHOOL DISTRICT TO FOR THEIR SPORTS ARE REALLY TIGHT AND THEY NEED EVERY DOLLAR ON TOP OF THIS. THIS ALSO CREATED A PROBLEM WITHIN THE DISTRICT’S IT’S KIND OF COME PICK FOR US THAT THE DISTRICT ACTUALLY GOT TO GO BACK FILED A SALES TAX AND THE DAX ROSE TRADE SOME FROM SOME OF THE FINANCIAL STAFF MONTHS. I WOULD LIKE TO SEE THIS BILL GO THROUGH.>>THANK YOU VERY MUCH SO REPRESENT STANCE THAT WE HAVE NOT MOVED YOUR BILL BUT WE’RE GOING TO HAVE YOU SPEAK TO IT RIGHT NOW AND THEN WE’LL MOVE IT LATER; BUT THAT REPRESENTS SENSE THEN.>>THANK YOU MISTER MISTER CHAIRMAN MEMBERS I HAVE POST BY A 3; 3; 6; THE 2; IT’S BASICALLY IDENTICAL TO WHAT YOU JUST HEARD WITH REPRESENTATIVE HEWITT IT REMOVES A NEW REQUIREMENT THAT SCHOOL-SPONSORED GROUPS COLLECT SALES TAX AND FUNDRAISING ACTIVITIES. THIS IS ALREADY PRESENTING HARDSHIPS FOR STUDENTS PARENTS COACHES AND ADVISORS OF THAT ATHLETIC ACADEMIC AND ARTISTIC TEAMS AND CLUBS WITHIN THEIR SCHOOLS. PREVIOUSLY A STUDENT GROUP LAB THAT COULD RAISE UP TO $20;000 ANNUALLY UNDER EXEMPTION FOR FUNDRAISING SALES OR FOR NONPROFIT GROUPS. THE EXEMPTION WAS ELIMINATED FOLLOWING A PROVISION IN LAST THAT THIS EDUCATION BILL WHICH NOW REQUIRES SCHOOL DISTRICTS TO TAKE CHARGE AND CONTROL OVER ALL EXTRACURRICULAR FUNDRAISING ACT TO THESE TO BE IN COMPLIANCE WITH THE GOVERNMENT ACCOUNTING STANDARDS BOARD’S PRINCIPLE. THIS CHANGE IN ESSENCE TREAT SCHOOLS. SPENCE IT EXCUSE ME TEAMS AND ORGANIZATIONS DIFFERENTLY FROM BOOSTER CLUBS WHICH HAS 5 OH ONE C 3 ORGANIZATIONS AREN’T SUBJECT TO SALES TAX DESPITE FUNDRAISING ACTIVITIES BUT BOTH GOING BY BOTH GOING TO THE SAME PURPOSE. MANY HIGH PROFILE SPORTS. IT WAS JUST BOOSTER CLUBS BUT SMALLER NON ACADEMIC TEAMS AND CLUBS OFTEN DO NOT BUT A COACHES AND ADVISORS OF SCHOOL TEAMS AND CLUBS EXTREMELY DEDICATED AND THEY ALREADY PUT IN COUNTLESS HOURS ON WEEKENDS AND EVENINGS FOR LITTLE PAY OFF AND ON TOP OF THEIR WORK IN THE CLASSROOM AS THEIR DEDICATION. WE SHOULDN’T EXPECT THEM TO GO THROUGH THE HASSLE OF FILING AND ADMINISTERING A SEPARATE NONPROFIT SIMPLY TO AVOID COLLECTING AND PAYING SALES TAX. A ONE ACT PLAY ADVISER IN MY DISTRICT TOLD ME ABOUT HOW HER STUDENTS HOLD A LARGE FUNDRAISING EVENT EACH YEAR. NOT VERY OF COMING FROM THE IRON RANGE. THE STUDENTS PUT IN THE LABOR OF MAKING AND SELLING PASTIES AND THIS OFFENSE FUNDS THINGS LIKE ANNUAL BANQUETS T SHIRTS AND OCCASIONAL CHIPS. LIKE LESSONS AT THE GUTHRIE WITH THIS EXEMPTION GUN NOW STUDENTS ARE RESPONSIBLE FOR COLLECTING A SALES TAX. PLEASE JUST THINK ABOUT WHAT THEY SAID STUDENTS RESPONSIBLE FOR COLLECTING SALES TAX AT A PAST THE SALE. AS THIS COMMITTEE DOES ITS WORK. THE DIFFICULT WORK YOU DO EVERY SESSION TO DETERMINE OUR STATE’S A SALES TAX POLICIES. KEY VALUE OF FAIRNESS SHOULD BE AT THE FOREFRONT TO THAT END. I THINK WE HAVE THE RESPONSIBILITY TO ASK TO WHOM EXACTLY IS THIS PROVISION FAIR MISTER CHAIR MEMBERS I THINK YOU NOT JUST FOR THE OPPORTUNITY TO HEAR THIS BILL BUT ASK FOR YOUR SUPPORT.>>THANK YOU VERY MUCH REPRESENTS AT SEA. THIS IS WHAT HAPPENS WHEN OTHER COMMITTEES TRY TO DO TAX POLICIES THAT MAKE YOU CAN HAVE THE AMATEURS DOING IT AND NOW WE HAVE TO CLEAN UP THE MESS ALL HERE WE ARE TODAY JUST A LESSON TO BE LEARNED IT’S REALLY SOMEHOW THE LANGUAGE THERE I DON’T THEY A BABY BIGGER DAYS TAX IMPLICATIONS WOULD BE THERE SO HERE WE ARE AND IT REALLY IS SOMETHING WE HAVE TO FIX SO YOU WELL A COMMENT NOW REPRESENTED DOWN OR YOU CAN GO TO TEST FIRED REPRESENTED ON WHAT THANK YOU SURE I HAD A QUESTION FROM HIS TONE BUT WE CAN CERTAINLY A PROCEED THE PUBLIC IS IF YOU WISH; BUT MISSED ALL OR A REPRESENTATIVE DONALD JUST DON’T KNOW THE TRUTH AND I THINK IT WAS 2018 THE PAST SALES TAX EXEMPTION.>>IT’S A GROUP CIVIC GROUPS AND NONPROFITS A 5 OH ONE C THREES AND FIVES LYNNSEY FORCE WOULDN’T THESE FOLKS FALL INTO THAT CATEGORY FOR THE FUND RAISING ACTIVITIES THAT THE RAIN STILL TO COME. WAS CHAIR RIPS OF MCDONALD. THIS WAS A REALLY INTERESTING CONCEPT.>>THESE THESE ORGANISMS THE STUDENT ORGANIZATIONS AREN’T 5 OH ONE C THREES. THEY THEY DON’T FILE REALLY SEPARATELY AND SO THEY WERE INCLUDED IN THIS NONPROFIT FUNDRAISING BUT THE LAW AS IT EXISTS EXISTED. ALREADY EXISTS RIGHT NOW SAYS BUT SCHOOLS DON’T QUALIFY FOR IT SO IT FUNDS HAVE TO GO THROUGH THE SCHOOL. THOSE ARE TAXABLE SALES. SO WHAT HAPPENED IS OVER IN THE EDUCATION DEPARTMENT THEY WERE JUST TRYING TO CLEAN UP THE COUNTING ISSUES AND SO WELL; I’M GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRED THAT THE SCHOOL DISTRICTS HAVE ANY MONEY THAT’S BEEN RAISED BY STUDENT ORGANIZATIONS GO THROUGH THE SCHOOL BOOKS. CHANGE THE LAW TO REQUIRE THAT WE GENERALLY COUNTED GENERALLY ACCEPTED ACCOUNTING PRACTICES.>>NOT HAVING ANY IDEA THAT THEY WERE IN.>>ACTING THE SALES TAX EXEMPTION. AND SO THAT’S WHY WE NEED TO FIX AND.>>REPRESENTIVE DOWN FOR FULL DISCLOSURE FOR THE COMMITTEE I AM ON THE EDUCATION FINANCE. WE HAVE A TEST THE FIRE AND SOME OF THAT HERMAN THE REPRESENTATIVE DONALDS SO YOU’RE FIXING YOUR OWN MISTAKES. I’VE GOT JUST THE TIRES. WE’VE GOT TO MOVE ON PLEASE WELCOME PLEASE IDENTIFY YOURSELF.>>THANK THANK YOU REPRESENTATIVE STANCE THAT IN HEWITT FOR BRINGING THESE BILLS FLORIDA BY NAME IS THERESA HERE COME THE EXECUTIVE DIRECTOR FOR US CME RDC IN SYNC CLOUD AND I WANT TO THANK COMMITTEE MEMBERS AND CHAIRMAN AND MISTER CHAIR FOR HAVING ME TODAY. A SENIOR DC IS A JOINT POWERS ORGANIZATION ESTABLISHED IN 1960 BY 2 PROVIDES AFTER SOLUTIONS; COOPERATE PURCHASING IN SPORT TO MEMBER DISTRICTS IN THE SURROUNDING CENTRAL MINNESOTA WELLS THE GROUND TO PROVIDE SEPARATE SPORTS LUCIUS OVER 300 EDUCATIONAL ENTITIES OVER 19 STATES. I’M HERE TODAY REPRESENTING OUR MEMBER AS BOTH MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS MUST BE A MINNESOTA SCHOOL BOARD ASSOCIATION. WE ARE HERE SUPPORTING THE LANGUAGE MODIFICATIONS PRESENTED AND HOUSE ABOUT 3320 AND 33 62 IN JANUARY 2017 THE GAS; THE GOVERNMENT OF COUNTY STANDING STANDARDS BOARD RELEASED GADSBY STATEMENT NUMBER 80 FOR RELATED TO THE SHIRI ACTIVITIES EFFECTIVE OF THE STATEMENT WHICH WAS IT A BAD IDEA. WHAT WAS TO PROVIDE GUIDANCE AND HOW VARIOUS TYPES OF ACTIVITY. HE’S NOT RELATED TO THE COURT EDUCATIONAL THINK STATES SHOULD BE HANDLED. I WAS INVITED TO JOIN THE SUBCOMMITTEE DEVELOPED BY THE MINNESOTA DEPARTMENT OF EDUCATION TO ASSIST IN ESTABLISHING RULES AND GUIDELINES SPECIFICS OF MINNESOTA PUBLIC SCHOOLS IN THE PROCESS OF BUYING ALL THE VARIOUS TYPES OF THINGS THAT HAPPEN IN THE SCHOOL. IT BECAME VERY CLEAR THAT WE’RE GOING TO NEED TO MAKE SOME SIGNIFICANT CHANGES TO THE WAY STUDENT ACTIVITY ACCOUNTING WITH HANDLE IT SCHOOLS; I WON’T BORE YOU WITH MORE OF THOSE DETAILS COULD SPREAD MORE THAN YOU NEED. BUT AFTER MANY DISCUSSIONS THAT MDE CONVERSATIONS WITH REPRESENTATIVES FROM THE GOVERNMENT ACCOUNTING STANDARDS BOARD. WE DETERMINED THAT BUT AT THAT TIME WE NEEDED TO ROLL THOSE 2 ACTIVITIES INTO THE GENERAL FUND OF THE DISTRICT. THIS IS WHERE THE UNINTENDED CONSEQUENCES OF THAT DECISION CAME IN TO PLAY MINNESOTA STATUTE TO 97 A. 7 SUBDIVISION 13 WHICH ADDRESSED FUND RAISING FOR NONPROFIT GROUPS ALLOWS FOR $20;000 SECTIONS. HER ACTIVITY. HOWEVER; WHEN ALL THE ACTIVITIES BECAME LUMPED TOGETHER IN THE GENERAL FUND THAT IS THE EXEMPTION IS OFTEN USED UP BY ONE FUND-RAISER. SO THE REMAINING FUNDRAISERS IN THE YEAR AS HAS REPRESENTED SAN STATE SAID THE 2 EITHER INFLATE PRICES TO COLLECT THOSE SALES TAXES OR THEY DO NOT COLLECT SALES TAX AND THE GENERAL FUND OF THE DISTRICT IS PAYING THOSE SALES TAXES OR THEY SELL ITEMS THAT ARE EXEMPT FROM SALES TAX SUCH AS YOU KNOW HOLIDAY CANDY INSTEAD OF DOING THAT WE’RE SELLING MORE CANDY INSTEAD OF THAT WRAPPING PAPER THAT MIGHT HAVE BEEN SO BEFORE. AT THE END OF THE DAY WE’RE JUST SHIFTING TAX DOLLARS FROM ONE PART TO ANOTHER IN THIS STATE AND AT THE END OF THE DAY IS THAT REALLY NECESSARY THE FISCAL IMPACT OF THE COLLECTIVE FUNDS; IT’S REALLY MINOR IN THE GRAND SCHEME OF THINGS AND THE LANGUAGE PROPOSED IN-HOUSE ABOUT 3233 2033 62 RESORT RESTORES THE $20;000 A FUND RAISING SALES TAX EXEMPTION PER ACTIVITY. SO YOU LOVE THAT THEY HAVE A $20;000 EXEMPTION PURSES ALL LUMPED TOGETHER. THE GROUP THAT I REPRESENT AS MOMENTS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS AND MSP A MINNESOTA SCHOOL BOARDS ASSOCIATION. FULLY SUPPORT THIS KIND OF ACTION I WANT TO THANK YOU FOR HAVING US. THANK YOU VERY MUCH ANY QUESTIONS.>>IF REPRESENT PETERSBURG NOT THANK YOU MISS YOUR I’M JUST A COMMENT AND ANOTHER OPTION OF COURSE; MISTER CHAIR WOULD BE JUST ELIMINATE THE SCHOOL DISTRICT MP SALES TAX ALTOGETHER.>>I I STAND FOR A>>REPRESENT MCDONALD; THANK YOU MISTER CHAIR SEEKING A QUESTION THAT I GOT A TEXT FROM OUR NECK NEIGHBOR BASEBALL TEAMS HIMSELF. THEY DO THAT TO DROP IT COMMUNITY US A LOT OF THE REASON A LOT OF MONEY WOULD THEY BE SUBJECT UNDER A SALES TAX A.>>THOSE GROUPS HAVE TO. WITH JUST CURIOUS WHY THE PROMOTION THE>>I PROPHETICALLY SPEAKING ISN’T MCDONALD IS THIS A HIGH SCHOOL. THIS PULLED HIM TO IT. MISTER CHAIR IN THIS HYPOTHETICAL SCENARIO. YES. THIS TO ME. MISTER A. BECAUSE A MCDONALD’S YES THAT UNDER OUR CURRENT LAW. THE CHANCES OF THAT ARE THAT THE BLUES TO A STATIC LEE THEY WOULD BE. ANY OTHER QUESTIONS FOR MISTER ERIC. IF NOT I’M GOING TO GO TO THE AUDIENCE IS THERE ANYONE; HEAR THAT LIKE TO TESTIFY. ON HOW SPOUT 3320. SCENE ON UM YOU KNOW WE HAD MENTIONED THE REVENUE NOTES ON THESE OTHER ONES. AND YOU KNOW WE SHOULD BE ACTUALLY MENTIONING THAT SO THE FIRST BILL WE HEARD WAS A 180;000. THIS THE SECOND BILL WAS 150;003RD BILL 120;000. THE 4TH BILL WAS 40;000 SO YOU GET AN IDEA OF WHAT THOSE SALES TAX EXEMPTIONS WOULD BE THIS. REVENUE KNOW THE 660;000. ANY OTHER QUESTIONS FOR EITHER ONE OF THE AUTHORS OF THESE BILLS AND THEN WE’LL MOVE HOUSE FILED 33. 20. REPRESENT YOU REPRESENT SENSE THAT ANY CLOSING COMMENTS.>>MEMBERS AS AN EDUCATOR MYSELF I JUST THINK THIS IS A REALLY IMPORTANT PIECE TO PASS. IN A PERFECT WORLD UTOPIA SCHOOLS; ONE TO HAVE TO FUNDRAISE BUT WHAT THAT’S WHERE WE’RE AT AND WE REALLY ARE NOT INTENDING TO TAX OR KIDS IN TAX; YOU KNOW THE THINGS THAT THEY NEED TO DO TO SUPPORT THE OUT OF SCHOOL ACTIVITIES OR EXTRACURRICULARS SO THANK YOU FOR CONSIDERING THIS AND I URGE YOU SUPPORT THE GOVERNMENT OF IT.>>COMMITTEE AND MISTER CHAIR THANK YOU FOR HEARING. THAT’S AND LEAVE YOU WITH THIS. LINES ARE LONG AT THE CONCESSION STAND AND WE TRY TO TEACH OUR STUDENT HELPERS TO COMPACT CHANGE RIGHT NOW THAT IT SOMEHOW TO DO A SALES TAX ON TOP OF THAT.>>IT WOULD BE THANK YOU VERY REPRESENTED LESS LIKELY READ NEW SAYS MOTION THE LAYOVER HOUSE FILE 3320 FOR POSSIBLE INCLUSION INTO THE ON THIS TAX PLAN AND THEN IF SOMEONE COULD MOVE THAT WE’RE NOT PLAYING TO THIS GOT ME MORE ALL FILED 3362 REPRESENTATIVE ERIC SAID MISTER CHAIR A MOVE THAT.>>8362 FOR POSSIBLE INCLUSION IN THE>>VERY GOOD REPRESENTATIVE ERICKSON OF MOVES

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