Baylor University is exempt from paying sales tax on its purchases; however, student organizations are not to use Baylor's tax-exempt status when making purchases. Registration with and official recognition by Baylor University as a chartered student organization does not give the student organization Texas sales tax exemption status. A student organization may avoid paying sales tax by applying and attaining exempt status with the State of Texas. Sales tax exempt status only allows an organization to avoid paying sales tax when buying, leasing, or renting taxable items that are necessary to the organization’s mission.
Generally, all student organizations must obtain a sales tax permit and collect sales tax on every taxable item sold, and then remit this money to the State, if the student organization is the seller of more than two sales of taxable items during any 12 month period. An exception to the sales tax permit requirement exists if the sales are made by a qualified student organization. Qualified student organizations are exempt from collecting and paying sales tax to the State Comptroller on the following sales:
To be designated as a qualified student organization, the University must file a University-issued certification with the Texas State Comptroller showing the organization is affiliated with Baylor University. This certification is obtained by sending a request to Student Activities for review in conjunction with the Tax & Compliance Department. The certification is valid until the student organization is decertified, suspended, or otherwise loses its campus privileges or affiliation and the University notifies the State Comptroller.