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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 1. General Provisions and Definitions
Section 6013
6013. "Business." "Business" includes any activity engaged in by any person or caused to be engaged in by him with the object of gain, benefit, or advantage, either direct or indirect.
Social club as engaged in business.—Sales from the operations of a dining room and bar of a nonprofit corporation organized for social and political purposes are nevertheless subject to the sales tax. The fact that no profit, indeed a loss, was sustained is immaterial, because it was unquestioned that "gain," "benefit" or "advantage" was derived by the club, which was therefore engaged in "business" as defined in this section. Union League Club v. Johnson (1941) 18 Cal.2d 275.
School districts.—A school district which, over a period of several years, makes on the average of two or three retail sales per quarter of tangible personal property consisting of buildings and improvements and miscellaneous equipment no longer needed for school purposes, is engaged in "business" within the meaning of this section, and is required to pay the sales tax upon such sales. Los Angeles City High School District v. State Board of Equalization (1945) 71 Cal.App.2d 486.
Counties.—A county making 72 sales over a period of several years is required to pay sales tax on such sales, which constitute doing business and are not exempt because not made for profit. People v. Imperial County (1946) 76 Cal.App.2d 572.
Bank.—Sale of personalized checks to depositors by a bank was held a "business" within the purview of this section although the sales did not occur in the banks regular course of business. Bank of America v. State Board of Equalization (1962) 209 Cal.App.2d 780.