Organized Camps (Publication 127)
Other Sales

Your sales of other items such as photos, videos, t-shirts, and souvenir items are generally subject to tax. If you paid tax on these items when you purchased them, you can take a "cost of tax-paid purchases resold prior to use" deduction when you sell them.

Tax-paid purchases resold
If you paid California tax on an item when you purchased it and then resold the item before using it, you can claim a deduction on the "cost of tax-paid purchases resold prior to use" line on the sales and use tax return on which you reported the sale. For example, you paid tax on printed t-shirts you gave to camp staffers (your cost $10 each). Some staffers want an extra shirt and you sell them shirts for $12. You must report the $12 t-shirt sale, but can claim a $10 tax-paid purchases resold deduction on your return.