How is buying a Bible not a "current expenditure of [a] religious organization"?
Simple when it is purchased from contributions then passed on as charitable gift without a sale occuring.
The question becomes is it a consumption expenditure subject to the NRST, not whether it is merely an expenditure in connection with a charitable gift.
Consumption expenditures are taxed i.e. that which is consumed by the non-profit not connected with its charity product, charitable contributions are not taxed purchases under the FairTax national retail sales tax.
Contributions to not-for-profit organizations are explicitly not taxzble under 706(a)
706(a) "Not-For-Profit Organizations- Dues, contributions, and similar payments to qualified not-for-profit organizations shall not be considered gross payments for taxable property or services for purposes of this subtitle."
Only transactions in the form of sales by the not-for-profit organization are taxes collected from contributors thus taxable per
706(d) Taxable Transactions- If a qualified not-for-profit organization provides taxable property or services in connection with contributions, dues, or similar payments to the organization, then it shall be required to treat the provision of said taxable property or services as a purchase taxable pursuant to this subtitle at the fair market value of said taxable property or services."
Furthermore, the not-for-profit is expressly exempt from paying taxes in connection with the purchase of goods purchased for furtherence of its charitable activities:
706(e) Exemptions- Taxable property and services purchased by a qualified not-for-profit organization shall be eligible for the exemptions provided in section 102.
The bona fide business purpose of a not-for-profit is its charitable activities as no part of the net earnings of a not-for-profit organization can inure to the benefit of any private shareholder or individual it can only go to further the business purpose of the not-for-profit organization (charitable works).
`SEC. 102. INTERMEDIATE AND EXPORT SALES.
`(a) In General- For purposes of this subtitle--
`(1) BUSINESS AND EXPORT PURPOSES- No tax shall be imposed under section 101 on any taxable property or service purchased for--
`(A) a business purpose in a trade or business, or
`(B) export from the United States for use or consumption outside the United States, if, the purchaser provided the seller with a registration certificate, and the seller was a wholesale seller.
*** SNIP ***.
`(b) Business Purposes- For purposes of this section, the term `purchased for a business purpose in a trade or business' means purchased by a person engaged in a trade or business and used in that trade or business--
- `(1) for resale,
- `(2) to produce, provide, render, or sell taxable property or services, or
- `(3) in furtherance of other bona fide business purposes.
Simple when it is purchased from contributions then passed on as charitable gift without a sale occuring.A sale did occur. The Church bought a Bible.
Furthermore, the not-for-profit is expressly exempt from paying taxes in connection with the purchase of goods purchased for furtherence of its charitable activities:They aren't reselling it; they aren't using it to produce, provide, render, or sell taxable property or services; and it isn't a business purpose. The section you quoted only states that the nonprofit, just like a business, doesn't pay the tax if they are going to resell it, but then they have to charge the tax when they do.