California – New Manufacturing Exemption Regulation 1525.4

SALT Report 3291 – The California Board of Equalization provides a summary of the developing details regarding the new partial manufacturing exemption.  In addition to providing sales and use tax relief the exemption will also provide inadvertent compliance grief.  The seller will now have another rate to be mindful of likely requiring system adjustments in order to accommodate the new partial tax rate, the seller will have an additional certificate to accept, validate and eventually retrieve, the qualified purchaser will now be obligated to accrue the difference for non-taxed out-of-state purchases at their deemed location of use…

California is finalizing the regulations related to this long awaited incentive and the Board of Equalization is expected to be presented with the final regulations on April 22, 2014.

For Further Information:             

BOE Release New Manufacturing Exemption L372