Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales And Use Tax Court Decisions


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Good Shepherd Lutheran Home of the West v. State Board of Equalization . . . (1983)

Thrift Shop Did Not Qualify for Exemption

A charitable organization which operated several thrift shops brought a suit for refund of sales tax paid to the Board of Equalization on sales at its shops. It was the Board's position that the organization did not qualify for the exemption provided to charitable organizations pursuant to Section 6375 of the Revenue and Taxation Code because the organization had not received a property tax exemption pursuant to Section 214 of the code. The trial court granted judgment in favor of the Board.

The court of appeal affirmed, holding that the organization had not met its burden of showing that the sales in question were made "as a matter of assistance to the purchasers" as required by Revenue and Taxation Code Section 6375. The court noted that the organization's statement that the sales were made to the general public, without any indication of what prices were charged or what prices were lower than those charged for comparable products by retailers, resulted in the organization not qualifying for the welfare exemption. Good Shepherd Lutheran Home of the West v. State Board of Equalization (1983) 139 Cal.App.3d 876.