Were an out-of-state nonprofit foundation's retail sales of historical books in California exempt?
Apply this to your situation
This page answers the general question as of 1963. Ask about yours and see what current California tax law says, with citations.
Plain-English summary
An unidentified out-of-state historical and research foundation asked about tax on sales of historical books. California concluded that its retail sales made in California were subject to sales tax.
Neither nonprofit status nor headquarters or incorporation outside California created an exemption for those California retail sales. The opinion directed the publisher to apply to the nearest Board office for a seller's permit required of all sellers.
Source and live-annotation limits
The official PDF does not include the February 13 letter, requester or foundation identity, historical books, publisher or entity records, headquarters or incorporation documents, California business or delivery facts, contracts, prices, invoices, retail sales, seller's-permit application or issuance, returns, exemption documentation, tax calculations or payments, audit, assessment, claim, appeal, or later outcome. The foundation, publisher, customers, transactions, quantities, prices, and tax amounts are redacted or unidentified.
The source names E. H. Stetson as Tax Counsel, then prints By above Robert H. Anderson without a filled signature line. The original-text section preserves that layout and does not assign a different formal role to Anderson.
The live annotation preserves the nonprofit foundation, California retail sales, out-of-state headquarters or incorporation, date, and taxable result. It omits the request and personnel, historical-and-research purpose, historical books, publisher, seller's-permit instruction, missing records, redactions, signature layout, and absent outcome.
What this means for you
Nonprofit publishers, out-of-state sellers, and tax professionals
Preserve entity and nonprofit records, every book and transaction, California solicitation, delivery and sale facts, marketplace arrangements, contracts, invoices, seller's-permit application and account, returns, exemption documents, tax calculations, and payments. Organizational status alone does not establish transaction exemption.
Common questions
Did nonprofit status exempt the book sales?
No.
Did out-of-state headquarters or incorporation change the result?
No.
What registration step did California require?
The publisher was told to obtain a seller's permit.
Did the source show that a permit was obtained?
No.
Which books and sales were reviewed?
The opinion calls them historical books and California retail sales but supplies no copies, titles, transactions, or amounts.
Citations and references
- February 13 request — described but not included, with no year printed
- Historical books, foundation and publisher records, California sales, permit records, tax records, and outcome — described or implicated but not documented
Verbatim support
From the official opinion:
Retail sales in this state of the books will be subject to the sales tax.
The fact that the foundation is headquartered or incorporated outside of California would not give rise to any tax exemption on retail sales made in California.
The publisher should apply to our nearest office for a seller’s permit, required of all sellers.
Source
- Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
- Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/390-0000-all.html
- Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/390-0040.pdf
Original ruling text
390.0040
STATE OF CALIFORNIA
STATE BOARD OF EQUALIZATION
February 20, 1963
REDACTED TEXT
Dear Mr. REDACTED TEXT
We have your letter of February 13 in which you inquire about tax on the sale of historical books sold by an out-of-state, historical and research, nonprofit foundation. Retail sales in this state of the books will be subject to the sales tax. There is no tax exemption under the Sales and Use Tax Law of retail sales made in California even though the foundation is nonprofit. The fact that the foundation is headquartered or incorporated outside of California would not give rise to any tax exemption on retail sales made in California. The publisher should apply to our nearest office for a seller’s permit, required of all sellers. Very truly yours, E. H. Stetson Tax Counsel
By
RHA:o’b
cc: San Francisco – District Administrator
Robert H. Anderson
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