Are California schools tax exempt? I need the actual code that states the answer.?

Question

I am looking to sell goods to a local public school. I have always charged sales tax on goods sold to schools but am getting resistance from a new customer. I am a small business owner and still learning the ins and outs of taxation. I'd like the actual tax code to cite to support my stance. I think I am right to charge sales tax.

Save the snarky comments. I couldn't find the answer online. I looked all over the Franchise Tax Board website as well as any others that appeared to have pertinent information -- all to no avail.

I spoke to the Board of Equalization today and was informed that all entities - including churches, schools, and other non-profits - are taxed on good purchased in California. Only the federal government is not taxed. Some schools are tax exempt due to special circumstances but this is rare. Institutions may acquire a reseller's permit which is a sales license. They will then be tax exempt as they will charge the end-user of whatever they are selling the tax. To the best of my knowledge, the above is true.

Answer 1

Schools are 'supported' by taxes. They don't generate income. But I'll be looking back to see if someone else answers with a reference to some sort of tax exempt status and how it can apply to a school.

As to California property tax exemptions, you can find reference to schools on page 10 of the following.
http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf#search=%22california%20school%20%22tax%20exemption%22%22

Answer 2

I'd call the California Board of Equalization, who appear from the CA website to be in charge of sales tax there, and ask them.

I'm in Pennsylvania, so laws are different, but in PA an exempt entity has a form from the state showing that they're exempt from paying sales tax - the form has a number assigned to the entity, and this form is presented to get exemption from paying sales tax when buying something that's otherwise taxable. You might ask the new customer if they have anything from the state to show you that they are exempt.

Answer 3

HAHA! I work in a CPA office in California. Have you considered going on the internet to get the answer, or do you trust your Yahoo 'friends' sooooooooooo much?