I think that the OP is asking whether or not the credit union is exempt from paying sales tax, rather than collecting sales tax.What sort of sales tax do you think applies? Sales tax in California only applies to tangible goods (or services that produce them). What is the credit union "selling" that you think would be subject to tax?
I'd like to know how or why they are exempt.They may be exempt, but they will have a certificate to prove it. I would demand proof.
Most likely they are, not because they are a credit union itself, but because by law, credit unions are non-profit organizations and most states provide some level of exemption for non-profits. A federal credit union doesn't have any special status than other non-profits. The "federal" just implies that they are subject to the NCUA supervision (an federal agency that provides deposit insurance like the FDIC but for credit unions).I'd like to know how or why they are exempt.
There is no sales/use tax exemption for charities or non-profits in California. So again I ask, where is the justification the OP has for this comment?Most likely they are, not because they are a credit union itself, but because by law, credit unions are non-profit organizations and most states provide some level of exemption for non-profits. A federal credit union doesn't have any special status than other non-profits. The "federal" just implies that they are subject to the NCUA supervision (an federal agency that provides deposit insurance like the FDIC but for credit unions).
However, in California, the exemption is not universal for non-profits. A credit union does not appear to fit in the blanket "charitable organization" category, so each purchase needs to qualify on based on what the item is.
Based on the document you linked I have to disagree with your blanket statement that there is no sale/use tax exemption for charities or non-profits in CA. There is no blanket exemption, but its totally situational.There is no sales/use tax exemption for charities or non-profits in California. So again I ask, where is the justification the OP has for this comment?
http://www.boe.ca.gov/pdf/pub18.pdf
"In other words, nonprofit and religious organizations, in general, are treated just like other California sellers and buyers for sales and use tax purposes."
There is no exemption WHATSOEVER from paying sales/use tax in CA for a non-profit on items otherwise considered subject to sales tax. There are certain limited exemptions from COLLECTING sales tax BY a non-profit on sales that clearly are not intended to be sales for profit of taxable items.Based on the document you linked I have to disagree with your blanket statement that there is no sale/use tax exemption for charities or non-profits in CA. There is no blanket exemption, but its totally situational.
I agree that the above statement you quoted does appear in that document, but the document goes on to explain in detail when exemptions exist/apply and when they do not.