Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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165.0000 CHARITABLE ORGANIZATIONS—Regulation 1570

Annotation 165.0098

165.0098 PTA Equivalent Organization. An organization which operates a second hand store to raise funds to assist students with financial aid does not qualify for the exemption provided in section 6375. The sales are not made as a matter of assistance to the purchasers. Such an organization may, however, qualify for the special tax treatment afforded Parent Teacher Associations and equivalent organizations under section 6370.

To qualify as a PTA equivalent organization, an entity must be a separate and distinct legal entity from the school to which it is related. It must generally follow the objectives and policies contained in Article II and III of the California State
PTA Model Bylaws, but need not have identical objectives or provide all of the services contained in the Articles. However, at the very least, it should be a nonprofit organization which includes parents and whose objectives include some coordinated promotion of educational programs or projects among parents, students, school authorities, and the general public. 10/24/88.