Paying Sales Tax on Resell Items

QUESTION: 

I attended a PTA & the Law workshop and learned that PTAs do not have to pay sales tax on items that they purchase to resell.  Earlier this year we held a spirit wear sale at our school, and paid sales tax when we purchased the items we sold.  Is there any way to get a refund on the sales tax? 

ANSWER: 

Yes.  You can apply to the Department of Revenue for a refund of tax paid on items that were resold, by completing the application and sending it to the Department.  If your PTA wants to avoid paying sales tax on items for resale in the future, you should apply for a Reseller’s Permit, which you can do either online or via a paper application.  More information is available here.

Are Board Meetings Open to Members?

QUESTION: 

Is there a rule that PTA Board meetings be open to members?  

ANSWER: 

There is no legal requirement or anything in the WSPTA Uniform Bylaws requiring that PTA Board meetings be open to members.  Anyone who has been a member for at least three months has the right under state law to review and obtain (at their expense) copies of minutes of board of directors’ meetings, and a local unit could include such a provision in its standing rules.  (The section of the WSPTA Uniform Bylaws governing the WSPTA Board of Directors was amended in 2009 to require that there be a minimum of ten seats available at WSPTA Board meetings for members to observe the meeting.  But that only applies at the state level.)  While opening the board meeting to members who want to observe is not required, you might to do so anyway to avoid creating the perception that the Board has something to hide.  Of course if someone is disruptive, they can be asked to leave and/or the meeting can be moved to a different location.  Also, even if the meeting were to be open to members, that would not give them the right to participate in board discussions.

Charitable Solicitations Renewal

QUESTION:  

I saw the notice on the side about filing with the Charities Division of the Secretary of State’s office—how do I know whether our  PTA is required to register?  Also, if we are already registered, how do I  file the annual update?

ANSWER:  

Any nonprofit that receives more than $25,000 in revenue from public contributions (including dues, receipts at fund-raisers, and donations) is required to register with the Charities Division of the Secretary of State’s Office, and file an annual report that must be received by the Secretary of State's Office no later than May 31st following the end of the fiscal year.  More information and the necessary forms are available online at the Secretary of State’s website.  If you have any questions or need assistance from our office, please contact Tatia Vasbinder either at 253-565-2153 or  1-800-562-3804.

Sharing Executive Positions

QUESTION:   

Our PTA’s standing rules do not allow for  sharing of positions (“co-president,” “co-treasurer” etc)” or, but the job of treasurer has become so complex that we’re having trouble finding one person willing to take on the job.  What would we need to do to allow for co-treasurers?  Are there any limitations on who can share the positions—for example could a husband and wife share the position?   

ANSWER:   

Generally speaking, there is nothing in the Bylaws that allow sharing positions, but there is also nothing specifically prohibiting it.  If your unit’s standing rules don’t allow sharing of positions, then the first step would be a vote of your membership to amend the standing rules, and the amendment should indicate whether each person will have a separate vote on the Board of Directors or whether the vote for the position will also be shared.  In this case, perhaps a better option would be to set up separate positions – one being a treasurer (responsible for monthly reports and tax filings) and the other being a bookkeeper (responsible for day-to-day activities, keeping track of check writing, bank deposits, and reimbursement requests).  

With respect to limitations, the Uniform Bylaws specifically provide that “In the event two (2) or more members of the same household hold offices in the same local unit or council, only one (1) shall co-sign financial matters.”  Article 5, Sec. 7 (a)(3).   Thus in the example you give, the husband and wife could be co-treasurer, but only one of them could be a signer on the bank account under this Bylaw provision.  In addition, whether it’s spouses or other relatives sharing the position, or a single person filling it, you want to make sure that there’s an unrelated person who is not a signer on any of the accounts who is charged with reviewing and signing the monthly bank statement(s) (original preferred but a copy acceptable) and looking at transaction with an eye to identifying anything that looks irregular.