Sales Tax Issues For California Churches [email protected]@yourchurchmatters.com © 2012 1.
Dec 17, 2015
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The information contained herein is intended provided general and educational in nature, and is not intended to be, and should not be construed as, legal or tax advice.
Laws of specific state or laws relevant to a particular situation may affect the applicability, accuracy or completeness of this information. Federal and state laws and regulations are complex and subject to change. David Rutledge disclaims any liability arising out of your use of or reliance on, the information.
For specific tax information about your own personal situation, consult your own attorney or accountant.
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Sales Tax Issues For California Churches
Each State’s Sales Tax Regulations Are Different
If you have church members that are involved in other Non Profit organizations – Sales Tax varies for different Non Profits – Check out BOE for churches
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Sales Tax Issues For California
Churches
Out of State Purchases
Without Sales Tax
= USE TAX
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Sales Tax Issues For California
Churches How To Pay Use Tax If you are not paying other
sales tax Form BOE – 401-DS Use
Tax BOE Pub. 79B Due: January 31 ,
Following the end of tax year
www.boe.com
Collecting Sales Tax
Selling Tangible Personal Property
Sales tax usually needs to be collected and sent to the state of CA
Sales Tax Issues For California
Churches
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Sales Tax added to the purchase price
Sale Price $1,000 Sales Tax Rate 10%
Tax: $100 $1,000 x 10% = $100
Sales Tax Issues For California
Churches
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Sales Tax included in the purchase price
Sale Price $1,000 Sales Tax Rate 10%
Tax: $90.91 $1,000 / 110% = $909.09, cost of
item $909.09 x 10% = $90.91 $ 909.09 (cost) + $90.91(tax) =
$1,000
Sales Tax Issues For California
Churches
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Tangible Personal Property
Tangible Personal Property is property that may be seen, weighed, measured, felt, or touched or which in any other manner perceptible to the senses.
Sales Tax Issues For California
Churches
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What Is a Sale
A sale is any transfer of title of tangible personal property for consideration .
Sales Tax Issues For California
Churches
Collecting Sales Tax
Unless your sales have a special exemption from sales tax, all sales that a church makes are subject to sales tax
Sales Tax Issues For California
Churches
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Sales tax application Form BOE – 400 SPA
www.boe.ca.gov
Left side : Forms & Publications
: Sales and Use Tax
Sales Tax Issues For California
Churches
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Items That A Church Might Sell
1. Food at different times -Wed. night
2. Books for bible studies
3. Sale of items at rummage sales
4. Sale of items at live or silent auctions
5. Vending machine items
Sales Tax Issues For California
Churches
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Meals at ChurchNO SALES TAX if all 3 conditions
are met
1. You sell the food at a social or other gathering you conduct
2. You furnish the meals to raise funds for your organization
3. You use the proceeds to carry out those functions and activities
Sales Tax Issues For California
Churches
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Pub. 18, Nonprofit Organization Pub. 42, Resale Certificate TipsPub. 51, Guide to Board of Equalization Services Pub. 61, Sales and Use Taxes: Exemptions & ExclusionsPub. 71, Sales and Use Tax RatePub. 73, Your Calif. Seller’s PermitPub. 103, Sales for ResalePub. 110, Calif. Use Tax BasicsBOE-230 General Resale CertificateBOE 400-SPA, CA Seller’s Permit Application
www.boe.ca.gov
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David Rutledge EA, CEP, RFC
800 – 669 – 1040 www.yourchurchmatters.c
om
Sales Tax Issues For California
Churches
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