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Yes. Why would it not? Public school teacher work for a tax exempt entity - the town. So the tax exempt status did not effect the sales tax collection duty in that case. Does this make sense?
If you want more clarification , you can ask the state, but their answer will always be yes.
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Isn't a 403b treated differently than a 501c?
They are both tax exempt.
403b is a teacher's retirement plan. The teachers worked for the town in the case you cited. Towns are tax exempt, just like a parochial school.
Yes I realize that - I was referring to the tax code that teahers and certain school employees fall under as a means to distinguish a public school from a private entity. So the state classifies both as the same?
Yes, because the issue is whether the teachers, or in this case teachers and librarians, act as sales agents for the Scholastic Book Company.
See Scholastic Book Clubs, Inc. v. Commissioner of Revenue Services, SC 18425 (Conn. Mar. 27, 2012)
The issue in the case was whether Scholatic had a significant presence in the state for state tax liablility to attach. Held that Scholastic does have a sufficient nexus and therefore sales agents must collect sales tax on book sales in CT. Under this rational, all sales agents, whether at a parochial school, a public school or even a home school teacher are agents for Scholastic and must collect CT sales tax.
By the way, CT sales tax people are more agressive than the IRS. They will take the most expansive reading of this case.
In other words, the ruling applies to all sales in the state of CT.
I realize that this may not be the answer that you wanted, but at least you know.
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