Were communion wafers exempt because they were religious items or because they were food?

Plain-English summary

California did not have a general sales tax exemption for religious items, Sunday School materials, or most educational materials. The letter explained that only specific statutory exemptions could apply.

Communion wafers qualified under a different exemption: food products for human consumption.

Their sales were therefore exempt because they were food, not simply because they had a religious use.

Common questions

Were all religious supplies exempt?

No. The source expressly says there was no general exemption for religious items.

Why were communion wafers exempt?

They were food products for human consumption.

Did the opinion exempt Sunday School publications generally?

No. It explained that only publications fitting a specific exemption, such as qualifying newspapers and periodicals, were exempt.

Citations and references

• California Sales and Use Tax Law general tangible-personal-property rule and newspaper, periodical, and food-product exemptions — applied without section citations in the official letter
• July 21, 1966 letter to the Franchise Tax Board asking about religious publications, materials, supplies, and communion wafers — referenced; not reproduced in the official PDF
• Franchise Tax Board referral of the July 21 letter to the State Board of Equalization — date, form, and copy not provided in the official PDF
• Prior bills proposed to exempt Bible sales — legislative history stated without bill numbers, dates, texts, or copies in the official PDF
• Religious publications, Sunday School materials and supplies, educational materials, and communion wafers — categories and treatment described; underlying catalogs, publications, product samples, labels, invoices, and sales records not reproduced in the official PDF
• Copy to the Santa Rosa District Administrator — recipient stated; copy, response, and any follow-up not reproduced in the official PDF
• Possible later sale, return filing, audit, assessment, refund claim, appeal, legislative change, or other agency action — no follow-up or final outcome supplied in the official PDF

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/245-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/245-0320.pdf

Original ruling text

245.0320

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

August 5, 1966

[X]

Dear [X]:
Your letter of July 21, 1966, addressed to the Franchise Tax Board has been referred to this board which administers the California Sales and Use Tax Law. The sales tax in California is a general tax applying to sales of all tangible personal property not specifically exempted. Among the specific exemptions are sales of newspapers and periodicals issued quarterly or more frequently. This is an exemption enacted by the Legislature. There has never been enacted an exemption with respect to Sunday School material generally or with respect to religious items. Several times, bills have been introduced to exempt sales of the Bible, but these have never been enacted into law. Accordingly, we can only advise you that under the present Sales and Use Tax Law, sales of newspapers and periodicals, issued quarterly or oftener are exempt, but other publications are not exempt. Thus, the tax applies to sales not only of Sunday School materials and supplies but to all educational materials excepting only those falling within some specific exemption such as the exemption for newspapers and periodicals. Another exemption is the sale of food products for human consumption. Under this exemption, the sale of communion wafers would be exempt from the sales tax. Very truly yours,

E. H. Stetson
Tax Counsel
EHS:ab
cc:

Santa Rosa - District Administrator