Sales of New Merchandise by Charitable Organizations Subject to Tax, Clarifies California Tax Department

• Sales and Use Tax generally applies to a charitable organization’s sales of new tangible personal property purchased from other retailers.
• Tax applies to sales of new merchandise purchased for resale and sold by a charitable organization at its thrift stores.
• Sales of new merchandise by qualifying charitable organizations are taxable.
• Regulation 1570 provides that sales of merchandise by a qualifying charitable organization may be exempt from tax if the property sold is made, prepared, assembled, or manufactured by the charitable organization.

Source: cdtfa.ca.gov

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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