Nonprofit or exempt organizations do not have a blanket exemption from sales and use taxes.

This page discusses various sales tax exemptions in California. In California, all sales are taxable unless the law provides a specific exemption. How Can a 501(c)(3) Also Be Sales Tax Exempt?. Revenue and Taxation Code 23701. Individuals, business, and groups must pay use tax on their taxable purchases. Examples of exempt sales include, but are not limited to: Sales of certain food products for human consumption. Although sales tax can be passed on to customers who buy goods, an organization is responsible for paying it unless it fits within one of the state’s specific exceptions. While the California sales tax of 6% applies to most transactions, there are certain items that may be exempt from taxation. In most states, 501 (c) (3) entities must pay sales tax on their purchases and charge sales tax on the items they sell. Not all 501 (c) (3) entities are automatically exempt from sales and use tax. Generally, a nonprofit’s sales and purchases are taxable. Internal Revenue Code Section 501 (c) (3) Sales and Use Taxes in General. Although many nonprofit and religious organizations are exempt from federal and state income tax, there is no similar broad exemption from California sales and use tax. Are 501c3 exempt from sales tax in California? No general exemption for nonproft and religious organizations Although many nonprofit and religious organizations are exempt from federal and state income tax, there is no similar broad exemption from California sales and use tax.
An organization that will sell goods must obtain a seller’s permit. rules summarized in this publication. Tax-exemption applied to nonprofits means that in most cases the sales tax for certain sales is waived for transactions relating to the charity’s “charitable mission.”. Sales Tax Exemptions in California . Revenue and Taxation Code 214 "welfare exemption". The California Sales and Use Tax Law, as implemented by duly adopted regulations of the California Department of Tax and Fee Administration (CDTFA), should be consulted to determine the requirements and complete description of the exemptions and exclusions identified by the listings. ANSWER: Any 501 (c) organization can potentially be required to pay sales tax. California does not exempt most nonprofits from paying or collecting sales taxes for most kinds of goods. Some sales and purchases are exempt from sales and use taxes. However, some states allow certain types of nonprofit organizations a special exemption from sales tax.