Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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410.0000 PERMITS—Regulation 1699

Annotation 410.0067.750


410.0067.750 Issuance of Permit to Minors. The Board of Equalization is precluded from issuing a seller's permit to a non-emancipated minor (minor). A minor is defined in Family Code section 6500 as a person under 18 years of age. Legal limitations on the ability of a minor to contract, to sue and be sued, and to delegate power are set forth under Family Code sections 6701 and 7050. There are also practical and physical limitations on a minor's ability to actively engage in or conduct business.

A minor may not generally enter into binding contracts, except under certain circumstances as provided in Family Code sections 6710 and 6712. The limited capacity of a minor to enter into binding contracts remains unaltered by the addition of a co-applicant, e.g., a parent, corporation, or limited liability corporation, on the minor's seller's permit application.

A minor may not be sued in his or her own name, nor may the minor settle his or her own legal claims. Additionally, although a co-applicant on the permit would arguably provide the Board with a responsible person against whom to enforce tax collection obligations, the co-applicant may request to be removed from the minor's seller's permit after it is issued. In such a case, the Board would not be able to effectively enforce payment of tax collection obligations against the minor as the holder of the seller's permit.

A minor is prohibited from being a partner in a California partnership, under Family Code 6701, because he or she lacks the legal capacity to give a delegation of power and a delegation by a partner to the other partners is required for partnership under California law. Accordingly, a minor cannot be a partner in a partnership applying for a California seller's permit.

Since a minor lacks the capacity to enter into binding contracts, to compromise claims, and to delegate authority, and because the addition of a co-applicant does not alter the inability of the minor to do so, the Board is precluded from issuing a seller's permit to a minor regardless of the addition of co-applicants on the application. 8/20/03. (2004–1).