Question:  We currently do not have a "student store" run by the ASB. Whenever the kids/clubs have something to sell (i.e. tickets to prom, football games, etc.) it is usually intermittent/irregular. So thus far we have been exempt from collecting sales tax. Now we are considering selling items online on our school website. Since technically the items online will be available 24/7, and thus not intermittent/irregular, will we need to charge sales tax on those items? We will not have a brick/mortar store, just the option to purchase items online...please advise.

Response:  Please refer to publication 18 of the California State Board of Equalization (BOE) which provides guidance for the taxability of sales by non-profit organizations, including ASB’s.  In short, the ASB must collect and remit sales tax on items it sells unless those sales, among other things, are made on an "irregular or intermittent basis".  Sales made via a web site would appear to be outside that definition, so we believe they would be taxable.  Periodic tax reports would be required, with the sales volume determining the filing frequency.   See publication 18, chapter 7 for more information; you can access it on the BOE web site at www.boe.ca.gov. 

6/25/09