Which charges at a charitable organization's convention were subject to California state and local sales tax?

Plain-English summary

Gross receipts from convention meals—including luncheons and dinner banquets—and gift-shop merchandise were subject to California state and local sales tax.

Convention registration fees and hotel-room charges were not subject to that sales tax under the letter. The staff advised contacting the City and County of Los Angeles because separate local taxes might apply to convention fees, hotel rooms, or entertainment.

Common questions

Did the organization's charitable status exempt banquet meals?

No. The letter treated the meal receipts as taxable.

Were gift-shop sales treated differently from meals?

No. Merchandise receipts were also taxable.

Did the letter rule out every tax on registration or lodging?

No. It addressed sales tax and expressly flagged possible city or county taxes.

Citations and references

• California state and local sales tax — applied to retailer gross receipts from meals and tangible merchandise
• City and County of Los Angeles taxes — separate inquiry recommended for convention fees, hotel rooms, and entertainment

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/165-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/165-0020.pdf

Original ruling text

165.0020
STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 5, 1964
REDACTED TEXT
This is in reply to your letter of July 14 in which you inquired about the application of sales tax with respect to certain fees and charges which will be made in connection with a convention of a charitable organization which will be held in Los Angeles. The California State and Local Sales Tax is applicable with respect to the gross receipts of retailers from the sale of tangible personal property. Therefore, gross receipts from the sales of meals, including luncheons and dinner banquets, and gross receipts from sales of merchandise at a gift shop will be subject to sales tax. The California State and Local Sales Tax is not applicable with respect to convention registration fees or hotel room charges. However, we suggest that you communicate with the City and County of Los Angeles to determine whether they impose taxes with respect to convention fees, hotel room charges, or entertainment. Very truly yours,

George A. Trigueros
Associate Tax Counsel
GAT:o'b [lb]