Swaggart Ministries v. Board of Equalization
Justice O’CONNOR delivered the opinion of the Court.
This case presents the question whether the Religion Clauses of the First Amendment prohibit a State from imposing a generally applicable sales and use tax on the distribution of religious materials by a religious organization.
I
California’s Sales and Use Tax Law requires retailers to pay a sales tax “[f]or the privilege of selling tangible personal property at retail.” Cal.Rev. & Tax.Code Ann. § 6051 (West 1987). A “sale” includes any transfer of title or possession of tangible personal property for consideration. Cal.Rev. & Tax.Code Ann. § 6006(a) (West Supp.1989).
The use tax, as a complement to the sales tax, reaches out-of-state purchases by residents of the State. It is “imposed on the storage, use, or other consumption in this state of tangible personal property purchased from any retailer,” § 6201, at the same rate as the sales tax (6 percent). Although the use tax is imposed on the purchaser, § 6202, it is generally collected by the retailer at the time the sale is made. §§ 6202-6206. Neither the State Constitution nor the State Sales and Use Tax Law exempts religious organizations from the sales and use tax, apart from a limited exemption for the serving of meals by religious organizations, § 6363.5.
During the tax period in question (1974 to 1981), appellant Jimmy Swaggart Ministries was a religious organization incorporated as a Louisiana nonprofit corporation and recognized as such by the Internal Revenue