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California Sales Tax Break for Manufacturing Equipment Advances

May 26, 2022, 2:06 AM

Businesses would pay no California sales tax on manufacturing equipment under a bill the state Assembly passed Wednesday.

The bill (A.B. 1951) by Assemblyman Timothy S. Grayson (D) would expand an exemption of 3.9375% in place since 2013 that covers the portion of the tax that goes to the state’s general fund. A complete exemption would include other portions of state and local sales tax, which could add up to 10.75%, depending on location.

  • The exemption would apply to purchases up to $200 million for equipment used in manufacturing, and research and development.