Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011
 

Sales And Use Tax Law

CHAPTER 4. EXEMPTIONS

Article 1. General Exemptions

Section 6375

6375. Sales by charitable organizations. There are exempted from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of, tangible personal property made, prepared, assembled, or manufactured by organizations formed and operated for charitable purposes qualifying for the exemption provided by Section 214 known as the "welfare exemption," which are engaged in the relief of poverty and distress, and make the sales and donations as a matter of assistance to the purchasers and donees.

History.—Added by Stats. 1959, p. 3582, in effect September 18, 1959. Stats. 1989, Ch. 1447, operative January 1, 1990, substituted "state" for "State", added comma after "assembled", deleted "of the Revenue and Taxation Code" after "Section 214", added "and donations" after "sales", and added "and donees" after "purchasers".

Exemption not applicable when sales made to general public.—Charitable organization did not qualify for charitable sales exemption because it did not sell goods at discounted prices to distressed or needy purchasers. Charitable organization cannot be denied sales tax exemption solely because it has insufficient property to qualify for property tax exemption. Good Shephard Lutheran Home v. State Board of Equalization (1983) 139 Cal.App.3d 876.