Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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495.0000 SALE

Annotation 495.0209


495.0209 Donated Property—Trust. A revocable living trust donated fine art prints and books to a religious organization. The trust had received the prints and books from the grantor when the trust was created. The trustee has a seller's permit.

The religious organization plans to give the donated books and prints to persons making donations to the religious organization. No sales or use tax arises as a result of the transfer from the trustee to the religious organization because the trustee had received the property as a gift from a person who is not a seller and had not purchased the property for resale.

If the religious organization does not suggest a minimum donation in exchange for the property it gives to donors, the transfer is not a sale nor is there a taxable use since the property was not acquired in a transaction subject to sales or use tax. 2/3/94.