To buy from Lakeshore Learning tax exempt, a qualifying organization submits its current state-issued exemption certificate to Lakeshore’s customer service team, and Lakeshore then flags the account so future orders skip sales tax. The exemption belongs to the organization, not to any individual employee, and the organization has to be the actual buyer on the transaction. Buyers in Alaska, Delaware, Montana, New Hampshire, and Oregon can skip the process entirely because those states charge no sales tax.
Who Qualifies
Sales tax exemption on retail purchases is tied to the buying entity. Three categories usually qualify:
- Public schools and government agencies. School districts, public universities, and municipal offices qualify automatically in most states as political subdivisions or instrumentalities of state government.
- Nonprofits with 501(c)(3) status. Private schools, charities, and religious organizations with federal recognition under 26 U.S.C. § 501(c)(3) can claim sales tax exemption in most states if they also register with the state’s revenue department. The organization has to be operated exclusively for charitable, educational, religious, or scientific purposes.1Office of the Law Revision Counsel. 26 U.S. Code 501 – Exemption From Tax on Corporations, Certain Trusts, Etc.2Internal Revenue Service. Exemption Requirements – 501(c)(3) Organizations
- Other exempt entities recognized by state law, such as tribal nations or veterans’ organizations in some jurisdictions. Check your state’s Department of Revenue for the full list.
One point trips up a lot of teachers: an employee cannot personally use the school’s exemption. If you walk into a Lakeshore store, hand over your own credit card, and buy supplies you plan to use in class, that is a personal retail transaction. The institution itself has to be the purchaser, through a purchase order, a school-issued payment card, or an arrangement set up before the sale.
What You Need Before You Contact Lakeshore
Gather these items so the submission can go through in one pass:
- The state-issued exemption certificate. Every state has its own version. Some call it a Certificate of Exemption, others a Sales Tax Exempt Purchaser Certificate, and a few use a blanket resale certificate format. Download the correct one from your state’s Department of Revenue. Organizations operating in multiple states may be able to use the Streamlined Sales and Use Tax Agreement Certificate of Exemption, accepted across all 24 member states of that compact.
- The organization’s Federal Employer Identification Number (EIN). Most state certificates require it.
- The IRS determination letter, for 501(c)(3) organizations. Lakeshore may request a copy for verification.
- The organization’s legal name and address, matching the Lakeshore account exactly. Small discrepancies between the legal name and the account name cause rejections.
- Your Lakeshore account or Rewards number. The exemption gets linked to that account so future orders process tax-free automatically.
The certificate itself asks you to specify the reason for exemption, such as government entity, charitable organization, or religious institution. An incorrect exemption type or a mismatched EIN is the most common reason a submission gets kicked back.
How to Submit the Certificate
Lakeshore requires a current tax-exempt certificate on file before it will remove sales tax from your orders. There are four ways to get the paperwork to them:
- Online at checkout. Enter your sales tax-exempt number in the billing information section. Your certificate must already be on file for this to apply.
- By email. Send the certificate to Lakeshore’s customer service team. If you have already placed an order, replying to the order confirmation email with the certificate attached is one accepted method.
- By phone. Call Lakeshore at (800) 778-4456 and arrange submission with a representative.
- In store. Bring a physical copy of the certificate to a Lakeshore retail location. Some stores issue a tax-exempt reference card for future visits so you don’t have to carry the paperwork every time.
Verification typically takes one to three business days after Lakeshore receives the documents. You should get a confirmation email once the account is flagged tax-exempt. Qualifying orders placed through that account should then process without sales tax automatically.
Payment Rules That Protect the Exemption
Getting the certificate on file is only half of it. The organization’s funds have to pay for the purchase. If a teacher pays with a personal credit card and the school reimburses them later, the original transaction was still a taxable retail sale. The exemption does not apply retroactively, because the buyer at the point of sale was an individual.
To keep the exemption clean, use a school purchase order, a district procurement card, or have the school place the order directly. Items bought tax-free also cannot be redirected for personal use. Markers bought for a classroom are fine; the same markers taken home for your own kids are not.
Keeping the Certificate Current
Tax-exempt certificates do not last forever in most states. Validity periods range from about three years to indefinite depending on the state, with five-year terms common in several jurisdictions. When yours expires, Lakeshore will start charging sales tax again until a renewed certificate is on file.
The bigger risk sits with the seller. If an audit finds tax-free purchases processed against an expired or invalid certificate, the retailer can be held liable for the uncollected tax plus interest and penalties. Lakeshore has every reason to enforce expiration dates strictly, so don’t expect a grace period. Set a calendar reminder a few weeks out and start the renewal with your state’s Department of Revenue early.
If You Are an Individual Teacher
The school’s exemption doesn’t transfer to you, but the federal tax code has a separate benefit for out-of-pocket classroom spending. K–12 teachers, instructors, counselors, principals, and aides who work at least 900 hours during a school year can deduct up to $300 in unreimbursed classroom expenses on their federal return. Married couples where both spouses are eligible educators can deduct up to $600 combined, but no more than $300 each.3Internal Revenue Service. Topic No. 458, Educator Expense Deduction It’s an above-the-line deduction, so you claim it whether or not you itemize.
The key word is “unreimbursed.” If the school buys the supplies using its exemption or reimburses you afterward, those purchases no longer count toward the $300.3Internal Revenue Service. Topic No. 458, Educator Expense Deduction There is a real tradeoff. Using the school’s exemption saves the sales tax on the order, while spending your own money and claiming the deduction reduces your taxable income. For most teachers, the deduction is worth more on a single order than the sales tax savings would be, but the math depends on your state’s rate and your federal bracket.