National Geographic Society v. California Board of Equalization

1977-04-04
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Headline: California may require National Geographic to collect use tax because its two California offices create sufficient nexus, making the Society responsible for collecting tax on mail‑order sales to Californians.

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Summary

Background

The National Geographic Society is a nonprofit based in Washington, D.C., that operates a mail‑order business for maps, atlases, globes, and books from its D.C. and Maryland offices. The Society also maintained two offices in California (San Francisco and Los Angeles) since 1956 that solicited advertising and together produced about $1 million in advertising sales annually. During the period at issue, mail‑order sales to California residents totaled $83,596.48. California law (§ 6203 and § 6204) requires a retailer engaged in business in the State to collect use tax, and the State sought to hold the Society liable for collecting that tax on its mail‑order sales to Californians.

Reasoning

The Court considered whether the Society’s California offices created a sufficient connection, or

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