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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 4. Exemptions
Article 1. General Exemptions
Section 6361.1
6361.1. Nonprofit youth organization. [Repealed by Stats. 1990, Ch. 116, in effect June 1, 1990.]
6361.1. Handcrafted items. (a) Any qualified organization is a consumer of, and shall not be considered a retailer of, tangible personal property if all of the following conditions are met:
(1) The tangible personal property is of a handcrafted or artistic nature and is designed, created, or made by either individuals with developmental disabilities or children with severe emotional disturbances who are members of, or receive services from, the qualified organization.
(2) The price of each item of tangible personal property sold does not exceed twenty dollars ($20).
(3) The qualified organizations's sales are made on an irregular or intermittent basis.
(4) The qualified organizations's profits from the sales are used exclusively in furtherance of the purposes of the organization.
(b) For purposes of this section, "qualified organization" means any organization that meets all of the following conditions:
(1) The organization is exempt from taxation pursuant to paragraph (3) of subsection (c) of Section 501 of Title 26 of the United States Code.
(2) The primary purpose of the organization is to provide services to either individuals with developmental disabilities or children with severe emotional disturbances.
(3) The organization does not discriminate on the basis of race, sex, nationality, or religion.
History—Added by Stats. 1993, Ch. 653, in effect October 1, 1993, but operative January 1, 1994. Stats. 1995, Ch. 290, in effect August 3, 1995, added "or artistic" after "handcrafted", added "either" after "made by" and added "or children … disturbances" after "disabilities" in paragraph (1) and substituted "twenty dollars ($20)" for "ten dollars ($10)" in paragraph (2) of subdivision (a); added "either" after "services to" and added "or children … disturbances" after "disabilities" in paragraph (2) of subdivision (b). Stats. 2004, Ch. 183 (AB 3082), in effect January 1, 2005, substituted "organization's" for "organizations's" after "The qualified" in paragraphs (3) and (4) of subdivision (a), and substituted "paragraph (3) … United States" for "Section 501(c)(3) of the Internal Revenue" after "pursuant to" in paragraph (1) of subdivision (b).