Rev. Rul. 56-331

An organization, exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code of 1954 for the reason that it is operated exclusively for charitable purposes, sells at retail articles which have been donated to it and turns over all of the proceeds from such sales to a nonprofit hospital. The articles sold by the organization include items of jewelry, furs, toilet preparations, and luggage, etc., retail sales of which are subject to the taxes imposed by sections 4001, 4011, 4021, and 4031, respectively, of the Code. There is no provision of law which exempts from the retailers excise tax the sale at retail of articles merely because such articles are sold by an organization operated exclusively for charitable purposes. Held, the retailers excise tax applies to the sale at retail of items of jewelry, furs, toilet preparations, or luggage, etc., by such an organization.