CALIFORNIA IN BRIEF : SACRAMENTO : School Groups Win Sales Tax Exemption

In a victory for schoolchildren and a defeat for the tax man, Gov. George Deukmejian signed into a law Friday a bill that would exempt school-sponsored youth groups from having to collect sales tax on items they sell. The measure, sponsored by Assemblyman Johan Klehs (D-Castro Valley), nullifies a decision by the State Board of Equalization that required most school groups to collect sales tax on many items they sell to earn money for after-school activities. The board made the decision as part of a 3-2 ruling against the Monterey High School wrestling team, which had been served with a $1,000 bill for sales taxes officials said it should have collected when it sold fried calamari at a county fair.