Do Booster Clubs Have to Collect Sales Tax?

Do Nonprofit Booster Clubs Have to Collect Sales Tax?

Short answer: Yes, in many states, nonprofit booster clubs are required to collect and remit sales tax on certain types of sales — even if you're a 501(c)(3). But the rules vary dramatically by state.

Here’s what you need to know:

• Some states don’t have a sales tax at all (hello, Oregon and Delaware!).
• Others, like Texas and California, allow a few tax-free events each year.
• In Wisconsin, you’re safe if you sell under $50,000/year and operate fewer than 75 days.
• States like Florida and Mississippi don’t give nonprofits any special breaks.

With laws this inconsistent, it’s no wonder booster club leaders are confused. That’s why BoosterSpark compiled a 50-state sales tax guide just for you (see below). Simply choose your state and instantly view applicable rules. No fluff, just facts.

Why Sales Tax Applies to Nonprofits

First things first: being a nonprofit — or even a registered 501(c)(3) — does not automatically exempt your booster club from collecting or paying sales tax. Nonprofit status only impacts federal income tax. Sales tax is a state‑level issue. Each state decides whether a nonprofit must collect tax on items it sells like concessions, spirit wear, etc.

Think of your booster club like a small business in the eyes of your state’s Department of Revenue. If you’re selling tangible items (like apparel, food, or gear), you’re often required to treat those sales like any retail transaction — taxes and all.

Common Sales That Might Be Taxable

Depending on your state, you might need to collect sales tax on:

• Concession stand food and drinks
• Spirit wear and uniforms
• Event tickets or admission fees
• Fundraiser merchandise (like candles, tumblers, or popcorn)
• Silent auction items (if not donated)

Weird State-by-State Rules

Here’s where it gets interesting. Some states offer quirky exemptions that make things even more complicated:

In Texas, nonprofits get two tax-free sales days per year — but if your booster club holds a third event, you’re suddenly on the hook to collect tax for all of them. Meanwhile, New York offers exemptions only if your nonprofit is registered and approved for tax-exempt status by the state. In California, you can make two occasional sales per year without collecting tax — but those sales must be for your organization's benefit, not personal fundraising for athletes or teams.

Then there’s Alaska, which has no state sales tax but allows cities and boroughs to impose their own. So while you’re clear at the state level, you might still owe local tax in Juneau or Wasilla.

What About Reseller Certificates?

If your booster club buys merchandise (like t-shirts or mugs) for resale, you can often avoid paying sales tax at the time of purchase by providing a reseller certificate. This document tells the vendor you intend to resell the items, not consume them. But don’t get too comfy — this doesn’t let you off the hook. You’re still responsible for collecting and remitting sales tax when you sell those items to others.

Each state has its own process for issuing reseller certificates, and in most cases, you must register with the state tax department first. Using a certificate without proper registration could expose your booster club to penalties and back taxes.

Find Your State

Important Caveats

The information in our 50-state tool is based on available data from official sources. However, tax laws change frequently. Local (city or county) taxes may also apply — and our guide focuses only on state‑level obligations. Always consult with a tax professional in your area to ensure full compliance with all applicable laws.