Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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C

165.0000 CHARITABLE ORGANIZATIONS—Regulation 1570

Annotation 165.0096

165.0096 Nonprofit Thrift Stores—Section 6363.3. Section 6363.3 provides an exemption for sales by thrift stores operated by a nonprofit organization if the purposes of that thrift store is to obtain revenue for the funding of medical and social services to chronically ill individuals, and at least 75 percent of those net revenues are actually expended for the purpose of providing medical and social services to the chronically ill. Chronically ill under section 6363.3 means individuals with a chronic, life-threatening illness, as defined in subdivision (c) of section 1568.01 of the Health and Safety code which provides: "Chronic, life-threatening illness means HIV disease or AIDS."

Thus, in order to qualify for the exemption set forth in section 6363.3, the nonprofit organization must be one that provides medical and social services to individuals with HIV disease or AIDS. Although cancer is certainly a life-threatening disease, a nonprofit organization providing services to the public and individuals with cancer does not qualify for the exemption. 3/25/97.