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Responsibility for Collecting Sales Taxes

Collecting sales tax when 4-H groups sell products

Even though 4-H is an organization that is not required to pay income tax to the state or federal government, 4-H organizations are not exempt from paying sales tax on items they purchase and may be required to collect a 5% sales tax on the products they sell.

Learn more about Massachusetts Department of Revenue (DOR) Guide to Sales and Use tax

Treasurer’s Checklist for Collecting Massachusetts Sales Tax on Products Sold

Check off the following steps as you go along to ensure that you have complied with all regulations and procedures.

  • Does sales tax need to be collected for this event/activity/fundraiser?  See items 2-5 in this document for more detail. 
  • If you are selling food you need to determine if you need to collect sales tax.  You may also need a food vendor’s permit from the local Board of Health. 
  • Ensure that your organization has registered with the Massachusetts Department of Revenue as a vendor (Form TA-1 for original registration).
  • At the end of the event, remit 5% of the total revenue generated from selling taxable items to the Department of Revenue in a timely manner.  See item 6 in this document.

To calculate the tax due, multiply the total revenue by .05.
For example, total revenue of $200 would be $200 x .05 = $10: this means $10 would be due to DOR in taxes.

Common Questions Regarding Massachusetts Sales and Use Tax