Form 3500 (2005)

* Application Fee:  $25.00

Forms & Instructions 3500 – 2005 Exemption Application Booklet

Exempt Organizations – FTB Publication 927

Although most California laws dealing with tax exemption are patterned after the Internal Revenue Code, obtaining state tax exemption is a separate process from obtaining federal exemption.  Even if you have obtained federal exemption for your organization, you must submit and Exemption Application form (FTB 3500) to us to obtain state tax exemption.  You may apply for state tax exemption prior to obtaining federal tax-exempt status.

Note:  If you do not obtain state tax exemption for your organization, it remains subject to the California Revenue and Taxation Code as a taxable entity.

California law differs from federal law in various ways with regard to exempt organizations.  Major differences are:

  • Churches and small charities must apply for state tax exemption if they desire state tax-exempt status.  California law does not provide an exception from applying for exemption for these entities.

Comments

  1. JCM says:

    When a gift is given to the organization in California and they do not have a State Tax exemption but do have a 501c3, that gift is not subject to any taxation for the organization making the contribution; correct?

  2. Gene Takagi says:

    The gift may be taxable to the 501(c)(3) donee organization for state income tax purposes. The donor may be entitled to a charitable income tax deduction if the donee is described by IRC Sec. 170(c), which is very similar, but not identical, to 501(c)(3).