96-121

Response July 25, 1996

Request

July 25, 1996

XXXXX

Re: Sales tax exemptions for elementary and secondary schools.

Dear XXXXX

This letter is to follow up on a conversation that you had with Commissioner Oveson and other staff members at their recent presentation at XXXXX. As you know, the legislature has created certain sales tax exemptions for sales made by primary and secondary schools. You asked whether the exemptions applied to sales by DATC. The Commission has discussed your question and we find that DATC is not a elementary or secondary school within the meaning of the exemption statutes.

We understand that high school students may attend some DATC classes, but that alone does not qualify DATC as a secondary school. I am sure we would find that most colleges and universities enroll some high school students for special courses. To allow those schools to claim the exemptions would defeat the narrow legislative intent to alleviate the costs of providing a primary education to school children. Therefore, we interpret the statutes to extend only to public and private schools which exclusively serve a community of K-12 students. For that reason, we have informed public schools that the exemptions do not apply to sales associated with adult or community education classes.

As a public entity, DATC has always been entitled to a sales tax exemption on its purchases. Like all other government entities, DATC must collect tax on its taxable sales.

Please let us know if you have other questions.

For the Commission,

Alice Shearer,

Commissioner