California Sales Tax Exemptions for NonProfits - No General Exemption

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.


Generally, a nonprofit’s sales and purchases are taxable.

In other words, nonprofit and religious organizations, in general, are treated just like other California sellers and buyers for sales and use tax purposes.

However, there are special exemptions and exclusions available for certain nonprofit and religious organizations.

Some organizations may not owe tax on their sales, whereas some organizations may owe tax on certain types of sales, but not all sales.

Other organizations may be responsible for tax just like other California sellers.

It all depends on what type of organization you are and what your organization’s practices and activities are.


Source: California Department of Tax & Fee Administration (CDTFA)

Course: https://salestaxsolutions2000.com/california-sales-tax-exemptions-nonprofits

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