Ezel / Tax Rulings / CA

Were sales of postage stamps by a private philatelist taxable when buyers acquired them as collectibles rather than for postage or resale?

Short answer Yes. Private sales of stamps to collectors for purposes other than postage or resale were taxable, subject to the stated interstate-commerce and resale exceptions.
State
CA
Ruling
Annotation 540.0360
Tax type
Sales and Use Tax
Issued
1950-09-19
Issued by
California State Board of Equalization
Requested by
A person asking about California sales tax on a philately business (identity not stated)
Topics
postage stamps interstate commerce resale certificate
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1950. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1950
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 California State Board of Equalization Associate Tax Counsel letter dated September 19, 1950, published by CDTFA as support for a sales and use tax annotation. It concerns private philatelists selling stamps as collectibles and relies on historical interstate-commerce and resale-certificate rules. Another taxpayer should not treat this staff opinion or its seller-permit instructions as current and should check present stamp, collectible, interstate-commerce, resale, and sales-tax rules. 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

The letter treated sales of stamps by persons other than the United States Government as taxable when collectors or other buyers acquired them for purposes other than postage.

Sales to dealers for resale could be supported by resale certificates, and qualifying interstate or foreign-commerce sales could be excluded under the historical rule. A person operating a philately business otherwise had to hold a seller's permit.

Citations and references

  • Historical California Sales and Use Taxes Rulings 55 and 68

Source

Original ruling text

540.0360

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
September 19, 1950

Dear Sir:
This is in answer to your letter of September 13 with respect to the application of the State sales tax to the business of philately. You are advised that we regard the sale of stamps by persons other than the United States Government to collectors or others for purposes other than use as postage as subject to the California Sales and Use Tax Law. Accordingly, a person engaged in business as a philatelist is required to hold a seller's permit issued by this Board. We are, therefore, enclosing an application for a seller's permit. When completed, it should be presented to our branch office, 308 Main Street, Salinas, California. As indicated by Sales and Use Tax Ruling 55, copy enclosed, the sales tax will not apply to sales of stamps in interstate or foreign commerce, if all of the requirements of that ruling are complied with. The use of resale certificates in support of claims of exemption with respect to sales to dealers for resale in the regular course of business is governed by Ruling 68, copy enclosed. A member of the staff of our Salinas branch office will be pleased to advise you on any problems you may have involving the computation of the tax, the keeping of records, and the filing of returns.

Very truly yours,

R. G. HAMLIN
Associate Tax Counsel

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