California – Partial Sales Tax Exemption Regulation 1525.4

SALT Report 3330 – ​On April 22, 2014, the Board of Equalization will be hearing the business taxes committee’s most recent recommendation, dated April 11, 2014, on proposed Regulation 1525.4 (Manufacturing and Research & Development Equipment) – Agenda, Issue Paper, and Revenue Estimate Regulation 1525.4.  Board staff and interested parties have produced 4 rounds of revisions and recommendations seeking to properly interpret the intent of law section 6377.1, AB 93 and SB 90.

The current issues of particular debate include the scope of the “Qualified Person” and the interpretation of the “Establishment” two-prong test.

The partial sales and use tax exemption will be effective July 1, 2014.

For Further Information:

Agenda, Issue Paper, and Revenue Estimate Regulation 1525.4

SALT Report 3291