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BTLG Table of Contents > Sales and Use Tax Annotations > D > 210.0000 Demonstration, Display and Use of Property Held for Resale > Annotation 210.0065

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D

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210.0000 Demonstration, Display and Use of Property Held for Resale—General—Regulation 1669

Annotation 210.0065

(a) General

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210.0065 Clearing House for Nonprofit Agencies. A clearing house, which is a nonprofit corporation, accepts goods and services as donations to charity. When received, a value is placed on the donation for distribution purposes. Credits are given to member agencies who could exchange the credits for the donated goods and services. In this way, the goods are distributed under a fair system among member agencies. No sale is involved in exchanging credits for goods or services and no tax is due.

The clearing house also accepts donations of goods that cannot be used by member agencies and trades them to retailers or distributors for goods that member agencies can use. The transfer of nonusable goods by the clearing house is a sale for resale and tax would not apply. However, the transfer of goods to the clearing house is a retail sale. The transferor is liable for sales tax and could charge tax reimbursement to the clearing house. 4/24/95.