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Important Information on Sales and Excise Tax Reporting FAQs


Frequently Asked Questions

I thought AYSO was exempt from sales taxes because we are a non-profit?
In general, what is considered taxable?
Are there any fundraising activities that are NOT considered taxable?
What NAP Account Codes are considered taxable?
Do Regions have to file sales tax returns?
Should I contact on my own the sales tax agency for my state or local government?
Why should I not contact any sales tax agencies on my own?
How is the sales tax paid?
Do these sales tax guidelines apply to Section, Area and Tournament accounts too? 
Why is the Monthly Deposit Report Form (MDRF) necessary?  
Why must the MDRF form be received by the National Office by the 5th of each month?  
Don't we need a special cash register to itemize and add-on any sales tax due for each concession or fundraising sale?  
Won't that decrease the net amount of money my Region receives from the sale? 
Where can I find more information?  
Will this issue be covered during the 2014 Section Meetings?  
What if I purchase from an out of state vendor?  
Is this list of anticipated questions full and complete?  
Who do I contact if I have further questions? 


I thought AYSO was exempt from sales taxes because we are a non-profit?
In general, this is true as the majority of our revenue comes from player registration fees that are almost universally considered exempt from sales tax. A number of Regions have other sources of revenue however such as fundraising activities. Fundraising activities include sales of merchandise such as T-shirts, and concession sales, which some states do consider to be taxable even though AYSO is considered a non-profit charitable organization. In addition, certain states consider a variety of purchases to be taxable, such as uniforms or equipment. In general uniforms are treated one of three ways, non-taxable, taxable upon the purchase of any kind of uniform or taxable for the sale of player uniforms. Equipment is treated either as taxable or non-taxable in certain states that we have an exemption specifically for consumable items (ie; purchases used to run the program).e comes from player registration fees that are almost universally considered exempt from sales tax. Many Regions have other sources of revenue however such as fundraising activities. Fundraising activities include sales of merchandise such as T-shirts, and concession sales, which some states do consider to be taxable even though AYSO is considered a non-profit charitable organization.

In general, what is considered taxable?
Some states consider fundraising income to be taxable. Examples of taxable fundraisers are concessions and merchandise sales such as pins or t-shirts. There are also a number of states that consider player uniforms taxable because the player pays for the uniform either out right or within the registration fee. There are also a few states that consider all purchases to be taxable.

Are there any fundraising activities that are NOT considered taxable?
Yes! Generally, non-taxable fundraising activities fall into the category of sales of intangible items, such as raffle tickets, car washes, or silent auctions. Revenue from non-taxable fundraisers should be coded to 4959-Other Income which is a non-taxable account code.

What NAP Account Codes are considered taxable?
Revenues recorded in the following NAP accounts will be taxable in several states; codes 4010 (Merchandise revenue), 4012 (T-shirts revenue), 4024 (Concessions revenue), 4027 (Concessions - Packaged). The same is true for Expense codes that are noted in the memo section of each check. The expense codes that are noted in the memo section of each check are entered into AYSO's financial system which is used to create reports to calculate the fees due and file each state's sales tax return. The taxable expense codes are; 5101-5104 (Uniforms), 5105 (Uniforms Taxable CA Only), 5130 (Equipment) and 5135 (Equipment Taxable CA Only). It is critical that expenses are being coded to the proper code to insure accurate tax filings and fees.

Do Regions have to file sales tax returns?
No, the AYSO National Office will file all sales tax and other required state tax forms and returns on your behalf as part of our normal support of your Region. The Sections, Areas, and Regions need to submit their MDRF by the due date and verify that deposits and expenses are coded correctly, so that the National Office can file the tax returns on time.

Should I contact on my own the sales tax agency for my state or local government?
No! Under no circumstances should you have any direct contact. Instead please email SalesTax@ayso.org for assistance.

Why should I not contact any sales tax agencies on my own?
As a single legal entity, AYSO operates as a single corporation with one tax identification number. Regions setting up their own separate sales tax reporting or communicating directly with a state or local government will cause confusion. As previously mentioned, the National Office will file all sales tax and other required state tax forms and returns on your behalf.

How is the sales tax paid?
The National Office will do the calculation, filing and payment for each state. Each Region will then be invoiced separately by the National Office for its portion of the total amount due and paid on its behalf. These sales tax invoices will show up on both the unpaid invoice screen in eAYSO as well as the monthly AR statement.

Do these sales tax guidelines apply to Section, Area and Tournament accounts too?
Yes, all bank accounts on NAP are subject to sales tax reporting.

Why is the Monthly Deposit Report Form (MDRF) necessary?
The MDRF has all of the known possible categories of revenue subject to sales tax. We need this information to file accurate sales tax returns. You can download the MDRF form.

Why must the MDRF form be received by the National Office by the 5th of each month?
This is necessary to meet state sales tax filing deadlines. 

Don't we need a special cash register to itemize and add-on any sales tax due for each concession or fundraising sale?
No. On receipts you receive from familiar merchants such as WalMart, the actual amount of sales tax due is added to the price of the merchandise resulting in a new grand total. For AYSO, the Finance Department will calculate sales tax due from sales of merchandise and concessions by simply multiplying the appropriate tax rate for your state times the amount of revenue you received from the sale. 

Won't that decrease the net amount of money my Region receives from the sale?
Yes it will, but you can minimize this by raising the price of what you are selling slightly to cover the tax that will be due. For example, you may choose to sell T-Shirts for $25 each instead of $20. 

Where can I find more information?
The AYSO Management Commission is reviewing all existing lesson plans, manuals and reference books to identify and revise content where needed. 

Will this issue be covered during the 2014 Section Meetings?
Yes, the regularly scheduled management update session will include a full description of the new sales tax procedures and allow time for questions. 

What if I purchase from an out of state vendor?
Depending on the state you live in, certain states consider all purchases to be taxable. If the vendor did not charge sales tax, a use tax may be owed. Email salestax@ayso.org to find out if your purchases are considered taxable. 

Is this list of anticipated questions full and complete?
Probably not, but it covers most of the really important ones we need to focus on right now. There are many different definitions of what is and what is not taxable throughout the various states, county and city governments of our country.

Who do I contact if I have further questions?
Please email salestax@ayso.org.
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