When did California's historical advice treat a public administrator's estate-property sales as taxable?

Plain-English summary

Board counsel applied the same historical sales-tax rule to public administrators that Sales Tax General Bulletin 52-6 applied to executors and administrators generally. The bulletin was said to be enclosed but is absent from the official PDF.

The sales count was made separately for each estate. One or two sales during administration of a particular estate were not taxed, no matter how many other estates the public administrator was handling. Three or more sales in substantial amounts from the same estate within twelve months were taxable.

Sales for resale to dealers, liquidators, or other resellers remained outside that result. When estate goods were delivered to an auctioneer for sale, the auctioneer had to report the tax under the letter's historical rule.

Inquiry, per-estate thresholds, resale and auction rules, and source limits

Tax Counsel E. H. Stetson sent the October 24, 1952 letter to a redacted attorney, for the attention of a second redacted person. It answers an October 17 inquiry about tax on sales by public administrators. The incoming letter's year is not printed, and the source does not identify the requester, client, public administrator, estate, property, transactions, or reason advice was sought. An unidentified Tax Administrator appears on the copy line.

Stetson enclosed Sales Tax General Bulletin 52-6, which set out the Board's views on sales by executors and administrators. That bulletin is not present in the one-page supporting PDF. No statute, regulation, case, ruling, form, or other authority is cited, so the scope and basis of the underlying general rule cannot be checked from this document alone.

The letter said public administrators were taxed to the same extent as executors and administrators generally. The count was specific to each estate: one or two sales during administration of a particular estate were not taxed, regardless of how many other estates the same public administrator managed.

If a public administrator made three or more sales in substantial amounts during any twelve-month period while administering one estate, the letter said sales tax was due and payable by the administrator. Sales for resale to dealers, liquidators, and other resellers were excepted. The source provides no standards for “substantial,” no transaction count beyond the thresholds, no gross receipts or tax rate, and no records establishing a buyer's resale purpose.

If goods were turned over to an auctioneer to sell, the auctioneer was required to return the tax. The letter gives no auction contract, agency terms, consignment records, sale proceeds, reporting period, filing method, or allocation of responsibility beyond that sentence.

The PDF also omits the October 17 inquiry; Bulletin 52-6; public-administrator appointment and authority; estate and probate records; inventories and appraisals; completed or planned sales, buyers, dates, prices, invoices, and receipts; resale certificates and dealer or liquidator status; auctioneer identity and returns; permits, tax returns, assessments, payments, refunds, correspondence, appeals, and later outcome. It does not show that the Board applied the rule to any identified estate or accepted a filing.

The live annotation preserves the general comparison to executors and administrators, one-or-two-sale no-tax result, estate-specific counting, no aggregation across estates, and three-or-more substantial-sale threshold within twelve months. It omits the October 17 inquiry and redacted recipients; Bulletin 52-6 enclosure; absence of cited statutes or regulations; administrator's duty to pay; resale exception for dealers, liquidators, and others; auctioneer return duty; copy recipient; missing transaction and authority records; and outcome gap.

What this means for you

Public administrators and estate fiduciaries

Under this historical rule, managing many estates did not aggregate their sales. The relevant series was measured within each particular estate.

Accountants and tax professionals

Maintain a separate twelve-month sales log for every estate and identify resale buyers. For auction sales, document who possesses the goods, conducts the sale, collects receipts, holds the permit, and files the return under current law.

Common questions

Q: Were one or two sales from an estate taxable?
A: No, under the letter's rule.

Q: Did sales from different estates get combined?
A: No.

Q: When did tax apply?
A: When a particular estate had three or more substantial sales within twelve months.

Q: Who reported tax on goods turned over to an auctioneer?
A: The auctioneer.

Q: Is General Bulletin 52-6 included?

A: No. The letter says it was enclosed, but the official PDF contains only the response.

Q: Does the source identify any actual sale or resale buyer?

A: No. It supplies no estate, asset, count, amount, buyer, resale certificate, auction record, or tax return.

Q: Does the letter show a later filing or tax outcome?

A: No. It gives general staff advice and no follow-up result.

Citations and references

• California Sales Tax General Bulletin 52-6 — said to be enclosed, but not included
• October 17 incoming inquiry — identified but not included; year not stated
• No statute, regulation, case, ruling, or form is cited in the letter
• Public-administrator, estate, sale, buyer, resale, auction, permit, return, tax, and outcome records — described or implicated but not included
• Unidentified Tax Administrator — copy recipient

Verbatim support

From the official October 24, 1952 E. H. Stetson letter:

Thus, the tax does not apply if but one or two sales are made during the administration of a particular estate, regardless of how many estates may be in the course of administration by a public administrator.

If, however, the administrator makes three or more sales in substantial amounts during any twelve-month period during the administration of a particular estate, it is our opinion that the sales tax is due and should be paid by the administrator, excepting of course as to those sales which are made for the purpose of resale such as sales to dealers, liquidators, and other resellers.

If goods are turned over to an auctioneer to be sold, the auctioneer is required to return the tax.

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Live annotation: Annotation 395.0960
• Original supporting opinion: 395.0960 PDF

Original ruling text

395.0960

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

October 24, 1952

Mr. R--- W. R--Attorney at Law
XXX --- Street
---, California
Attention:

Mr. R--- E. P---

Dear Sir:
We are enclosing herewith a copy of Sales Tax General Bulletin 52-6 setting forth our views as to the application of the sales tax with respect to sales by executors and administrators. In answer to your inquiry of October 17 as to the application of the tax to sales by public administrators, it is our opinion that the tax applies with respect to sales by public administrators to the same extent as to sales by executors and administrators generally. Thus, the tax does not apply if but one or two sales are made during the administration of a particular estate, regardless of how many estates may be in the course of administration by a public administrator. If, however, the administrator makes three or more sales in substantial amounts during any twelve-month period during the administration of a particular estate, it is our opinion that the sales tax is due and should be paid by the administrator, excepting of course as to those sales which are made for the purpose of resale such as sales to dealers, liquidators, and other resellers. If goods are turned over to an auctioneer to be sold, the auctioneer is required to return the tax. Very truly yours,

E. H. Stetson
Tax Counsel

EHS:ph

cc:

--- - Tax Administrator