Charitable Organization State Sales & Use Tax

Under existing law, charitable organizations are exempt from state sales and use tax. The definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization. The act requires the department of revenue to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.(Note: This summary applies to this bill as enacted.)