Don’t forget that California currently has a partial sales tax exemption for manufacturers. The effective time period for this exemption is between July 1, 2014 and June 30, 2022. The exemption is at the rate of 4.1875% from July 1, 2014 to December 31, 2016.
During the remainder of the exemption period the rate is 3.9375%. The exemption applies to sales taxes on machinery and equipment used in California for manufacturing. What many taxpayers miss is that the exemption also applies to replacement parts for qualified equipment and for computers used to run the manufacturing equipment.
In order to take advantage of this benefit, you must present an exemption certificate to the seller of the equipment or parts at the time you purchase the qualifying property.
Please call your LSL Advisor at 949.829.8299 to access the help you need.
