- It is not required to hold a seller’s permit pursuant to this part.
- It is not required to be registered pursuant to Section 6226 (a retailer)
- It is not a holder of a use tax direct payment permit as described in Section 7051.3.
- It receives at least one hundred thousand dollars ($100,000) in gross receipts from business operations per calendar year.
Although the BOE has sent out notices and automatic registration letters, an organization that is a qualified purchaser but has not received notice from the BOE must still register by the April 15 deadline. Another area of concern is that the BOE is asking for past due use tax returns for 2007 and 2008 to be filed as well, along with penalties and interest. The compliance burden could be quite significant.
It is difficult to say how this will affect nonprofits, but they need to be aware of the issue. A series of answers to Frequently Asked Questions regarding the use tax registration requirement is available on the Board of Equalization's website.