General Sales Tax Exemptions

Revenue and Taxation Code Division 2, Part 1, Chapter 4, Article 1 deals with general exemptions from the Sales and Use Tax Law in California.

Section 6351 defines the term “exempted from the taxes imposed by this part.”

Section 6352 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this State of tangible personal property the gross receipts from the sale of which, or the storage, use, or other consumption of which, this State is prohibited from taxing under the Constitution or laws of the United States or under the Constitution of this State.

Section 6353 states that there are exempted from the taxes imposed by this part the gross receipts derived from the sales, furnishing, or service of and the storage, use, or other consumption in this state of, all of the specified items. The terms “qualified residence” and “qualified person” are defined.

Section 6354 states that there are exempted from the taxes imposed by this part, the gross receipts from the sales of commemorative “California Gold” medallions produced and sold in accordance with law and the storage, use, or other consumption in this state of commemorative “California Gold” medallions so produced and sold.

Section 6355 states that there are exempted from the taxes imposed by this part the gross receipts from the sale in bulk of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins that are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange and the storage, use, or other consumption in this state of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold.

Section 6356.5 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage and use of, or other consumption in this state of, farm equipment and machinery, and the parts thereof, purchased for use by a qualified person to be used primarily in producing and harvesting agricultural products. The terms “qualified person” and “farm equipment and machinery” are defined.

Section 6356.6 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage and use of, or other consumption in this state of, equipment and machinery designed primarily for off-road use in commercial timber harvesting operations, and the parts thereof, that is purchased for use by a qualified person to be used primarily in harvesting timber.

Section 6357 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of motor vehicle fuel used in propelling aircraft, except aircraft jet fuel, the distributions of which in this state are subject to the tax and not subject to refund.

Section 6357.1 states that there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, diesel fuel used in farming activities and food processing. The term “farming activities” is defined. The exemption does not apply with respect to specified activities.

Section 6357.3 exempts from the taxes imposed by Sections 6051.8 and 6201.8, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of both of the two specified activities. No exemption from the tax is allowed under this section unless the purchaser furnishes the seller with an exemption certificate, completed in accordance with any instructions or regulations as the board may prescribe.

Section 6357.5 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption of, fuel and petroleum products sold to an air common carrier for immediate consumption or shipment in the conduct of its business as an air common carrier, on an international flight. The air common carrier must furnish to the seller an exemption certificate in writing stating the quantity of fuel and petroleum products claimed as exempt. The terms “immediate consumption or shipment” and “international flight” are defined.

Section 6357.7 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, motor vehicle fuel. The exemption established by this section does not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.

Section 6358 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of animal life products, feed, seeds, fertilizer, and plants.

Section 6358.1 exempts from taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of organic products and waste byproducts as specified.

Section 6358.2 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of wood shavings, sawdust, rice hulls, or other products that are used as litter in poultry and egg production and that are ultimately resold as, or incorporated into, fertilizer products.

Section 6358.4 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, drugs or medicines administered to animal life as an additive to feed or drinking water, the primary purpose of which is the prevention and control of disease of food animals, or of nonfood animals which are to be sold in the regular course of business.

Section 6358.5 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, any racehorse breeding stock. The term “racehorse breeding stock” is defined.

Section 6359 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, food products for human consumption. The term “food products” is defined.

Section 6359.1 exempts from the taxes imposed by this part, the gross receipts from the sale of, and storage, use, or other consumption in this state, of hot prepared food products sold by caterers, or other vendors, to air carriers engaged in interstate or foreign commerce for consumption by passengers on such air carriers, and the gross receipts from the sale of and the storage, use or other consumption of hot prepared food products sold or served to passengers by air carriers engaged in interstate or foreign commerce for consumption by passengers on such air carriers.

Section 6359.2 provides that 33 percent of the gross receipts of any retailer from the sale at retail of food products is subject to the tax when those food products are actually sold through a vending machine.

Section 6359.3 provides that any nonprofit veterans’ organization is a consumer of, and not to be considered a retailer within the provisions of this part with respect to flags of the United States of America which it sells, where the profits are used solely and exclusively in furtherance of the purposes of the nonprofit organization.

Section 6359.4 states that any vending machine operator is a consumer of, and is not considered a retailer of, food products which sell at retail for fifteen cents ($0.15) or less and which are actually sold through a vending machine.

Section 6359.45 provides that any vending machine operator which is a nonprofit, charitable, or educational organization is a consumer of, and is not considered a retailer of, tangible personal property which sells at retail for fifteen cents ($0.15) or less and which is actually sold through a vending machine. Any library district, municipal library, or county library and any vendor making sales pursuant to a contract with a library district, municipal library, or county library is a consumer of, and not considered a retailer of, photocopies which it sells at retail and which are actually sold through a coin-operated copy machine located at a library facility.

Section 6359.7 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of ice or dry ice used or employed in packing and shipping or transporting food products for human consumption when the food products are shipped or transported in intrastate, interstate, or foreign commerce by common carriers, contract carriers, or proprietary carriers.

Section 6359.8, when fruits or vegetables are shipped or transported in intrastate, interstate, or foreign commerce by common carriers, contract carriers, or proprietary carriers, as an incident to the exemption provided, there are exempted from the taxes imposed by this part, the gross receipts from the sale of, and the storage, use, or other consumption in this state of, all of the specified items.

Section 6360 states that any organization formed and operated for charitable purposes and qualifying for the welfare exemption from property taxation is a consumer of, and is not to be considered a retailer within the provisions of this part with respect to bracelets designed to commemorate American prisoners of war, which it distributes, whether or not a contribution is made to the organization, where the profits are used solely and exclusively in furtherance of the purposes of the organization.

Section 6360.1 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a “Buddy Poppy” or any other symbolic, impermanent lapel pin that memorializes United States military veterans killed in foreign wars of the United States, by any corporation established by the Congress of the United States.

Section 6361 specifies that an organization listed or described in subdivision (b) is a consumer and is not to be considered a retailer within the provisions of this part, of food products, nonalcoholic beverages, or other tangible personal property made or produced by members of the organization provided, however, that the organization’s sales are made on an irregular or intermittent basis, and that the organization’s profits from those sales are used exclusively in furtherance of the purposes of the organization. The term “organization” is defined.

Section 6361.1 provides that any qualified organization is a consumer of, and not considered a retailer of, tangible personal property if the four specified conditions are met. The term “qualified organization” is defined.

Section 6361.5 states that any public or private school, school district, county office of education, or student organization is a consumer of, and is not to be considered a retailer within the provisions of this part with respect to yearbooks and catalogs prepared for or by it and distributed to students.

Section 6362.5 exempts from the taxes imposed by this part the gross receipts from the sale or lease of, and the storage, use, or other consumption in this state of, master tapes or master records embodying sound, except amounts subject to the taxes imposed by other provisions of this part paid by a customer in connection with the customer’s production of master tapes or master records to a recording studio for the tangible elements of such master records or master tapes. The terms “master tapes or master records embodying sound,” “amounts paid for the furnishing of the tangible elements,” and “recording studio” are defined.

Section 6362.7 exempts from the taxes imposed by this part, the gross receipts from the sale of, and the storage, use, or other consumption in this state, of tangible personal property which becomes an ingredient or component part of any newspaper or periodical that is distributed without charge and regularly issued at average intervals not exceeding three months, and any such newspaper or periodical. The term “periodical” is defined.

Section 6362.8 exempts from the taxes imposed by this part, the gross receipts from the sale of, and the storage, use, or other consumption in this state, of tangible personal property that becomes an ingredient or component part of any newspaper or periodical regularly issued at average intervals not exceeding three months, or any such newspaper or periodical.

Section 6363 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, meals and food products for human consumption furnished or served to the students of a school by public or private schools, school districts, student organizations, parent-teacher associations, and any blind person operating a restaurant or vending stand in an educational institution. The term “food products” is defined.

Section 6363.2 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property that is sold to a successful bidder at an auction that is conducted by, or affiliated with, a nonprofit organization, if the purpose of that auction is to obtain revenue for the funding of a shelter for homeless individuals and families and those revenues obtained are actually expended for that purpose. The term “nonprofit organization” is defined.

Section 6363.3 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, used pieces of clothing, household items, or other retail items sold by thrift stores operated by a nonprofit organization if the purpose of that thrift store is to obtain revenue for the funding of medical, hospice, or social services to chronically ill individuals, and at least 75 percent of the net income derived from operations of the thrift store are actually expended for the purpose of providing medical, hospice, or social services to the chronically ill. The term “nonprofit organization” is defined.

Section 6363.4 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, tangible personal property sold by a thrift store located on a military installation and operated by a designated entity that, in partnership with the United States Department of Defense, provides financial, educational, and other assistance to members of the Armed Forces of the United States, eligible family members, and survivors that are in need. The term “designated entity” is defined.

Section 6363.5 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use or other consumption in this state of, meals and food products for human consumption furnished or served by any religious organization at a social or other gathering conducted by it or under its auspices, if the purpose in furnishing or serving the meals and food products is to obtain revenue for the functions and activities of the organization and the revenue obtained from furnishing or serving the meals and food products is actually used in carrying on such functions and activities. The term “religious organization” is defined.

Section 6363.6 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, meals and food products for human consumption furnished or served to and consumed by residents or patients of the five specified care facilities.

Section 6363.7 states that there are exempted from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, meals that are delivered to homebound elderly or disabled persons by a nonprofit volunteer home delivery meal provider.

Section 6363.8 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use or other consumption in this state of, meals and food products for human consumption that are furnished or served by any nonprofit veteran’s organization at a social or other gathering conducted by it or under its auspices, if the purpose in furnishing or serving the meals and food products is to obtain revenue for the functions and activities of the organization and the revenue obtained from furnishing or serving the meals and food products is actually used in carrying on those functions and activities.

Section 6363.9 states that there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, diapers designed, manufactured, processed, fabricated, or packaged for use by infants, toddlers, and children.

Section 6363.10 exempts from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, menstrual hygiene products. The term “menstrual hygiene products” is defined.

Section 6364 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of and the storage, use, or other consumption in this state of specified contains, including returnable and nonreturnable ones.

Section 6364.5 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, any container used to collect or store human whole blood, plasma, blood products, or blood derivatives that are exempt from taxation, including blood collection units and blood pack units. The terms “blood collection units” and “blood pack units” are defined.

Section 6365 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use or other consumption in this state of, original works of art, which meet five specified conditions. The exemption provided by this section applies only to works of art purchased to become part of the permanent collection of either a museum or a nonprofit corporation. The terms “work of art,” “museum,” and “permanent collection” are defined.

Section 6366 exempts from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, specified aircraft and ground control station. The term “ground control station” is defined.

Section 6366.1 exempts from the taxes imposed by this part, the gross receipts from the sale of and the storage, use, or other consumption in this state of aircraft which are leased, or are sold to persons for the purpose of leasing, to lessees using such aircraft as common carriers of persons or property under authority of the laws of this state, of the United States or any foreign government, or to any foreign government as lessees for use by such government outside the state, or to persons as lessees who are not residents of this state and who will not use such aircraft in this state otherwise than in the removal of such aircraft from this state.

Section 6366.2 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of any new motor vehicle sold to a purchaser who is a resident of a foreign country and who arranges for the purchase through an authorized vehicle dealer in the foreign country prior to arriving in the United States, if the two specified conditions are met. The term “carrier” is defined.

Section 6366.3 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use or other consumption in this state of tangible personal property purchased by the state or any local government entity as part of a public art collection which is considered a museum or a nonprofit museum regularly open to the public which is operated by or for a local or state government entity, or operated by a nonprofit organization which has qualified for exemption pursuant to Section 23701d, provided that three conditions are met.

Section 6366.4 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, tangible personal property purchased by a nonprofit museum regularly open to the public that is operated by or for a local or state government entity, or operated by a nonprofit organization which has qualified for exemption pursuant to Section 23701d, provided the property is purchased and used exclusively for display purposes within the museum. The term “museum” is defined.

Section 6366.5 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, endangered or threatened animal or plant species, if both the seller and the purchaser are nonprofit zoological societies.

Section 6367 exempts from the taxes imposed by this part the gross receipts from occasional sales of tangible personal property and the storage, use, or other consumption in this state of tangible personal property, the transfer of which to the purchaser is an occasional sale. This exemption does not apply to the gross receipts from the sale of, or to the storage, use, or other consumption in this state of, a mobilehome or commercial coach required to be annually registered, a vessel or aircraft, or a vehicle required to be registered.

Section 6368 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of watercraft and any sales of tangible personal property becoming a component part of that watercraft in the course of constructing, repairing, cleaning, altering, or improving the same, and charges made for labor and services rendered in respect to that constructing, repairing, cleaning, altering, or improving, if any of the three specified conditions are met. It is rebuttably presumed that a person is not regularly engaged in the business of commercial deep sea fishing if the person has gross receipts from commercial fishing operations of less than $20,000 a year.

Section 6368.1 exempts from the taxes imposed by this part, the gross receipts from the sale of and the storage, use, or other consumption in this state of watercraft which are leased, or are sold to persons for the purpose of leasing, and any sales of tangible personal property becoming a component part of such watercraft in the course of constructing, repairing, cleaning, altering, or improving the same, and charges made for labor and services rendered in respect to such constructing, repairing, cleaning, altering, or improving, if any of the three specified conditions are met. It is rebuttably presumed that a person is not regularly engaged in the business of commercial deep sea fishing if the person has gross receipts from commercial fishing operations of less than $20,000 a year.

Section 6368.2 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle sold to a qualified buyer. The terms “qualified motor vehicle” and “qualified buyer”  are defined.

Section 6368.5 states that there are exempted from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this State of rail freight cars for use in interstate or foreign commerce.

Section 6368.7 exempts from the taxes imposed by this part, the gross receipts from the sale and the storage, use, or other consumption of passenger transportation vehicles, including, but not limited to, rail passenger cars, locomotives, other rail vehicles, bus and van fleets, and ferryboats, sold or leased to the Department of Transportation by a person who received title to the property from the Department of Transportation.

Section 6368.9 exempts from the taxes imposed by this part, the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, qualified equipment purchased by a qualified person at the end of the term of a lease or sublease of qualified equipment pursuant to any exercise of a purchase option under the lease or sublease, provided the two specified conditions are satisfied. The terms “qualified equipment” and “qualified person” are defined.

Section 6369 states that there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, medicines as specified. The terms “medicines” and “health facility” are defined.

Section 6369.1 exempts from the taxes imposed by this part the gross receipts from the sale, and the storage, use or other consumption, in this state of hemodialysis products supplied to a patient on order of a licensed physician and surgeon and which constitute medicines.

Section 6369.2 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of wheelchairs, crutches, canes, quad canes, white canes used by the legally blind, and walkers, and replacement parts for these devices, when sold to an individual for the personal use of that individual as directed by a physician.

Section 6369.4 exempts from the taxes imposed by this part the gross receipts from the sale, and the storage, use, or other consumption, in this state of items and materials when used to modify a vehicle for physically handicapped persons.

Section 6369.5 exempts, in the case of the sale of a modified vehicle to a disabled person who is eligible to be issued a distinguishing license plate or placard for parking purposes, from the taxes imposed by this part the gross receipts from the sale, and the storage, use, or other consumption attributable to that portion of the vehicle which has been modified for physically handicapped persons.

Section 6369.5 exempts from the taxes imposed by this part the gross receipts from the sale, and the storage, use, or other consumption, in this state of any medical oxygen delivery system, including liquid oxygen containers, high pressure cylinders, and regulators, when sold, leased, or rented to an individual for the personal use of that individual as directed by a physician.

Section 6369.6 exempts from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, medicinal cannabis or medicinal cannabis products when a person with an identification card or primary caregiver furnishes the seller with both their card and a valid government-issued identification card. The terms “person with an identification card” and “primary caregiver” are defined.

Section 6370 applies to three specified nonprofits. An organization described in this section is a consumer of, and is not to be considered a retailer within the provisions of this part with respect to, tangible personal property which it sells, if the profits are used exclusively in furtherance of the purposes of the organization.

Section 6370.2, before April 1, 2029, exempts from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, all specified products. The following terms are defined: “breast pump,” “breast pump collection and storage supplies,” and “breast pump kit.”

Section 6370.5 applies to nonprofit associations and equivalent organizations performing auxiliary services to any city or county museum in the state, which are authorized to operate within the museum by the governing authority of the museum and have held an annual rummage sale for at least five consecutive years immediately preceding the sale. An organization described in this section is a consumer of, and not to be considered a retailer within the provisions of this part with respect to, tangible personal property which it sells at an annual rummage sale; provided, the profits are used exclusively in furtherance of the purposes of the organization.

Section 6371 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption of, medical identification tags furnished by an organization which is exempted from taxes. The term “medical identification tags” is defined.

Section 6373 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of tangible personal property the gross receipts of which are received in the form of CalFresh benefits acquired by the purchaser pursuant to the federal Food and Nutrition Act of 2008.

Section 6374 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage use or other consumption in this state, of meals and food products for human consumption furnished or served to low-income elderly persons at or below cost by a nonprofit organization or governmental agency under a program funded by this state or the United States for such purposes.

Section 6375 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of, tangible personal property made, prepared, assembled, or manufactured by organizations formed and operated for charitable purposes qualifying for the exemption known as the “welfare exemption,” which are engaged in the relief of poverty and distress, and make the sales and donations as a matter of assistance to the purchasers and donees.

Section 6375.5 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, new children’s clothing that is sold to a nonprofit organization for its distribution without charge to elementary schoolchildren. The term “nonprofit organization” is defined.

Section 6376.5 exempts from the taxes imposed by this part the gross receipts from the sale of and the storage, use, or other consumption in this state of meals and food products for human consumption furnished to and consumed by persons 62 years of age or older residing in a condominium and who own equal shares in a common kitchen facility; provided, that the meals and food products are served to such persons on a regular basis.

Section 6377.1, before July 1, 2030, exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, any of the specified qualified tangible personal property used in any stage of the manufacturing, processing, refining, fabricating, or recycling of tangible personal property.

Section 6378 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, any of specified tangible personal property purchased for use by a qualified person to be used primarily in teleproduction or other postproduction services.

Section 6379 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of any used mobilehome, which is subject to property tax, or any used floating home.

Section 6379.5 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of catalogs, letters, circulars, brochures, and pamphlets consisting substantially of printed sales messages for goods and services printed to the special order of the purchaser and mailed or delivered by the seller, the seller’s agent, or a mailing house, acting as the agent for the purchaser, through the United States Postal Service or by common carrier to any other person at no cost to that person who becomes the owner thereof.

Section 6379.8 exempts from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, mailing lists, if the contract regarding that mailing list restricts the purchaser to a single use of the mailing list. The terms “mailing list” is defined.

Section 6380 provides that there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, qualified property for use in space flight.