Nonenterprise activities

Nonenterprise activities are activities not financed and operated in a manner similar to a private business. Activities include all sales of goods and services that are exclusively governmental in nature, and related to providing public education.

Nonenterprise activities also include activities funded by less than 50% of user fees or charges to consumers.

For example, the cost of maintaining recreational facilities that a school may lease to organizations or groups is rarely, if ever, funded more than 50 percent with amounts charged to those groups or organizations.

To determine the percentage, user fees or charges to consumers must be measured against the total costs attributable to providing the activity, including overhead. This review should be performed on the fiscal year basis used by the school district in maintaining its books and records.

Application of tax

  • Nonenterprise activities are exempt from B&O tax.
  • Retail sales tax must be collected on nonenterprise activities defined as retail sales.

Examples of non-retail, non-enterprise activities (exempt from B&O tax, exempt from RST):

  • charges for academic transcripts
  • charges for admission for school events
  • charges to a group, organization, or the public for use of recreational facilities when the school does not control the facility
  • sales of meals/beverages to students, faculty, and staff
  • shop & lab fees