California Sales Tax Exemptions for NonProfits - Typical Taxable Sales

As noted above, a sale of merchandise or goods is generally taxable unless it’s covered by a specific exemption or exclusion.


A sale is an exchange of merchandise or goods for something else of value: money, barter, or trade.

The barter or trade doesn’t have to be a two-way exchange of merchandise.

It also includes an exchange of merchandise for services.

For example, if you give meals to your accountant in your museum café in exchange for accounting services, that’s considered a sale of the meals.

Nonprofits commonly conduct a variety of activities that are considered sales. These include (but are not limited to) the following:

Sales of food, meals, beverages, and similar items under a number of different circumstances.

Sales of tickets that buyers will exchange for food, beverages, or other physical products.

Sales of booklets, books, pamphlets, etc.

Sales of tickets for fundraising events when the ticket price includes amounts for food or beverages.

Sales of items at rummage sales, bazaars, carnival booths, community events, and other fundraisers.

Sales of merchandise in Internet, live, and silent auctions.

Sales of tickets for game booths where prizes are guaranteed to each ticket purchaser, even when the prizes have little value.

Examples include white elephant, fish pond, grab bag, and “pitch-’til-you-win” games.

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

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

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