Did sales tax apply when a public or private college provided student-record copies at actual cost under a statutory access right?

Plain-English summary

California concluded that sales tax did not apply when a public or private college or university furnished a student a copy of the student's records at actual cost under the then-current Education Code.

The cited law gave current and former students a right of access, defined access to include an accurate copy or a request to release a copy, and permitted a reasonable copying charge not exceeding actual cost. It prohibited a charge for searching for or retrieving the record.

Because the institution was complying with a statutory duty at the fee prescribed by law, the memorandum treated the transfer as involuntary rather than a consensual retail sale. It applied the same principle previously used for copies that municipalities were legally required to furnish.

What this means for you

Colleges and universities

The result was tied to the statutory access obligation and the actual-cost fee limit, not a general exemption for every document or transcript product.

Accountants and tax professionals

Confirm current record-access law, who is entitled to the copy, whether the charge exceeds permitted cost, and whether any separate search, certification, rush, or delivery services are included.

Common questions

Q: Were the statutory at-cost transcript copies taxable?

A: No.

Q: Did the rule apply to both public and private institutions?

A: Yes, under the memorandum's analysis.

Q: Could the institution charge for searching for the record?

A: The quoted statute said no.

Citations and references

• Former California Education Code §§ 66000 et seq., 67110, 67123, and 67130
• Business Taxes Law Guide Annotation 515.0140

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Annotation page: Annotation 515.0228
• Original supporting opinion: 515.0228 PDF

Original ruling text

State of California

Board of Equalization
Legal Division (MIC:82)

Memorandum
515.0228

To:

Mr. Ramon J. Hirsig, Supervisor
Audit Evaluation & Planning Unit

From:

Ronald L. Dick
Senior Tax Counsel

Subject:

Inquiry on Sale of Student Transcripts

Date:

June 4, 1990

This is in reply to your March 29, 1990 memorandum regarding the application of sales tax to transfers by the U--- of the P--- to students of copies of their student records. As you noted, the Donahoe Higher Education Act (Ed. Code § 66000 et seq.) provides the law relating to student records. Section 67130 provides that any currently enrolled or former student has a right of access to all studen records relating to that student. Section 67110 defines “access” to mean “a personal inspection and review of a record or an accurate copy of a record, an oral description or communication of a record or an accurate copy of a record, and a request to release a copy of any record.” Section 67123 provides that, “any college or university may make a reasonable charge in an amount not to exceed the actual cost of furnishing copies of any student record; provided, however, that no charge may be made to search for or to retrieve any student record.” You noted that, since the school is providing the transcripts pursuant to statute, the transaction is nontaxable. We agree. As you noted, the legal staff has previously taken the position that, “if the furnishing of copies of documents held by a municipality is made mandatory by statute or ordinance, the transfer of such tangible personal property is a governmental act and the tax does not apply, whether the amount of the charge for the copies is fixed by law or by a public official.” (Bus. Taxes Law Guide Annot. 515.0140.) We believe the same result obtains when the transfer is of copies of transcripts at cost by a public or private college or university, pursuant to statute, at a fee prescribed by the statute. The transfer is not a consensual agreement; that is, it is an involuntary transfer. RLD:sr