I received this email from the Board of Equalization regarding clarification of what requires a vendor permit;
To :
Mr. Richard Holland
Date :
May 7, 2014
[email protected]
From :
Juliet Nantege
Senior Tax Auditor, MIC: 44
Reference :
F14-04-144 - 0417 - 0425
Subject :
Seller's Permits
Thank you for your recent e-mail requesting our advice regarding whether or not you are required to hold a seller’s permit to sell chickens twice a year at a local park.
You are not required to hold a seller’s permit if you are only in business of selling chickens the products of which ordinarily constitute food for human consumption. The following Regulation provides a statutory exemption for the sale of chickens.
Based on Regulation 1587, Animal Life, Feed, Drugs and Medicines, tax does not apply to sales of any form of animal life of a kind the products of which ordinarily constitute food for human consumption (food animals), as for example, cattle, sheep, swine, baby chicks, hatching eggs, fish, and bees.
Regulation1699, Permits, explains that only a person actively engaged in the business of selling (or leasing under a lease defined as a sale in Revenue and Taxation Code section 6006(g)) tangible personal property of a kind the gross receipts from the retail sale of which are required to be included in the measure of tax is required to hold a seller’s permit.
I hope this information is helpful. If you have any further questions regarding this or any other issue, please write or call our Taxpayer Information Section at (800) 400-7115. You may also visit our website at www.boe.ca.gov.
Comments: We have a group of individuals who raise backyard chickens. Twice a year we get together at a local park to sell, trade, or buy chickens . The city requires us to have seller permits in order to use their facilities for our events. I have read many publications on this site where many of us do not meet the requirements for needing a seller permit; selling of food animals and/or eggs (no sales tax), not selling for profit but as a hobby, two events a year or less (such as garage sales). Some individuals have business license for their own business. Given this information are we required to obtain a sellers or vendors permit? Thanks your help and consideration.
To :
Mr. Richard Holland
Date :
May 7, 2014
[email protected]
From :
Juliet Nantege
Senior Tax Auditor, MIC: 44
Reference :
F14-04-144 - 0417 - 0425
Subject :
Seller's Permits
Thank you for your recent e-mail requesting our advice regarding whether or not you are required to hold a seller’s permit to sell chickens twice a year at a local park.
You are not required to hold a seller’s permit if you are only in business of selling chickens the products of which ordinarily constitute food for human consumption. The following Regulation provides a statutory exemption for the sale of chickens.
Based on Regulation 1587, Animal Life, Feed, Drugs and Medicines, tax does not apply to sales of any form of animal life of a kind the products of which ordinarily constitute food for human consumption (food animals), as for example, cattle, sheep, swine, baby chicks, hatching eggs, fish, and bees.
Regulation1699, Permits, explains that only a person actively engaged in the business of selling (or leasing under a lease defined as a sale in Revenue and Taxation Code section 6006(g)) tangible personal property of a kind the gross receipts from the retail sale of which are required to be included in the measure of tax is required to hold a seller’s permit.
I hope this information is helpful. If you have any further questions regarding this or any other issue, please write or call our Taxpayer Information Section at (800) 400-7115. You may also visit our website at www.boe.ca.gov.
Comments: We have a group of individuals who raise backyard chickens. Twice a year we get together at a local park to sell, trade, or buy chickens . The city requires us to have seller permits in order to use their facilities for our events. I have read many publications on this site where many of us do not meet the requirements for needing a seller permit; selling of food animals and/or eggs (no sales tax), not selling for profit but as a hobby, two events a year or less (such as garage sales). Some individuals have business license for their own business. Given this information are we required to obtain a sellers or vendors permit? Thanks your help and consideration.