Ezel / Tax Rulings / CA

Were sales to Navy Relief Societies exempt as sales to United States agencies or instrumentalities?

Short answer No. California said Navy Relief Societies were not United States agencies or instrumentalities and therefore refused the federal-purchaser exemption. It invited the society to submit its legal basis if it disputed that status.
State
CA
Ruling
Annotation 505.0580
Tax type
Sales and Use Tax
Issued
1953-07-28
Issued by
California State Board of Equalization
Requested by
A seller to a Navy Relief Society
Topics
federal instrumentalities sales tax exemption
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1953. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1953
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a July 28, 1953 California State Board of Equalization tax-counsel letter published by CDTFA as support for a sales and use tax annotation. It states the Board's historical entity-status conclusion without describing the society's organization or governing documents. Verify current law and the exact purchaser's status before relying on it. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A seller asked whether purchases by Navy Relief Societies qualified for the exemption covering sales to the United States and certain federal agencies and instrumentalities.

California concluded that Navy Relief Societies were not United States agencies or instrumentalities. Sales to them therefore were not exempt on that basis.

The Board told the seller that if the customer disagreed, the society could submit a statement explaining its legal reasons for claiming federal-instrumentality status.

What this means for you

Military-affiliated charities, vendors, and tax advisers

Military affiliation or a relief mission does not itself establish federal status. Obtain and evaluate the entity's legal authority rather than accepting a general exemption claim.

Common questions

Q: Did California recognize Navy Relief Societies as federal instrumentalities?

A: No.

Q: Were vendor sales to them exempt?

A: No, on the claimed federal-instrumentality ground.

Q: Could the society provide more support?

A: Yes. The Board invited a statement of its legal reasons.

Citations and references

  • The letter cited no numbered statute, regulation, or case.

Source

Original ruling text

505.0580

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

July 28, 1953

--- --- ----- --- ----- --- ---, -Gentlemen:
This is in answer to your letter of July 16 requesting to be informed whether sales to Navy Relief Societies are exempt from California retail sales tax. The exemption upon which the society relies, as indicated in the second paragraph of your letter, is the exemption of sales to the United States and certain of its instrumentalities and agencies. Navy Relief Societies are not agencies or instrumentalities of the United States and we, therefore, are unable to recognize sales to such societies as exempt transactions. If your customer takes the position that it is an instrumentality of the United States, we suggest that you obtain from the society, or have the society forward directly to us, a statement of its reasons for claiming to be an agency or instrumentality of the United States. Very truly yours,

E. H. Stetson
Tax Counsel

EHS:ph

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