California's New Partial Tax Exemption For Manufacturing and Research & Development

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

A.B. 93 and S.B. 90, new partial sales and use tax exemptions, recently became available in California. Taxpayers in the state can now save approximately $8 million annually if they are involved in manufacturing or research and development activities. In this article, authors Karri Rozario and Hal S. Kessler give an overview of the new partial exemption and discuss key definitions within it.