Projects are allowed to sell merchandise that is related to your charitable mission (for example, the sale of an anthology written by youth in the course of an after-school program) and that serves an educational purpose. And, yes, your project must charge sales tax for the merchandise you sell. Please check online for current sales tax rates. Items may be sold online or in-person in the state of California. Projects may not sell merchandise in-person outside of the state of California.
If you have questions about selling merchandise, please contact your finance liaison.