California Partial Exemption Certificate for Manufacturing, Research and Development Equipment
A sales tax exemption certificate can be used by businesses (or in some cases, individuals) who are making purchases that are exempt from the California sales tax. You can download a PDF of the California Partial Exemption Certificate for Manufacturing, Research and Development Equipment (Form BOE-230M) on this page. For other California sales tax exemption certificates, go here.
Purchases made for certain types of manufacturing and research and development are subject to a special sales and use tax rate of 3.3% as opposed to the general rate of 7.5%. The buyer is supposed to fill in this form, which the vendor is supposed to retain with him once it is filled.
Partial Exemption Certificate for Manufacturing, Research and Development EquipmentBOE-230-M (5-14) STATE OF CALIFORNIA PARTIAL EXEMPTION CERTIFICATE FOR MANUFACTURING, RESEARCH AND DEVELOPMENT EQUIPMENT BOARD OF EQUALIZATION 1 Section 6377.1 This is a partial exemption from sales and use taxes at the rate of 4.1875% from July 1, 2014 to December 31, 2016, and at the rate of 3.9375% from January 1, 2017 to June 30, 2022. You are not relieved from your obligations for the remaining state tax and local and district taxes on this transaction. This partial exemption also applies to lease periods occurring on or after July 1, 2014 and before July 1, 2022, for leases of qualified tangible personal property even if the lease agreement was entered into prior to July 1, 2014. I hereby certify that the tangible personal property described below and purchased or leased from: SELLERS/LESSORS NAME SELLERS/LESSORS ADDRESS (street, city, state, zip code) is qualified tangible personal property and will be used by me primarily (please check one): 1. for manufacturing, processing, refining, fabricating, or recycling; 2. for research and development; 3. to maintain, repair, measure, or test any property being used for (1) or (2) above; or 4. as a special purpose building and/or foundation. Description of qualified tangible personal property purchased or leased 2 If this is a specific partial exemption certificate, provide the purchase order or sales invoice number and a precise description of the property being purchased. If you want this certificate to be used as a blanket certificate for future purchases, describe generally the type of property you will be purchasing and ask your vendor to keep this certificate on file. I, as the undersigned purchaser, hereby certify I am primarily engaged in manufacturing, processing, refining, fabricating, or recycling as described in codes 3111 to 3399 in the North American Industry Classification System (NAICS) 3 or I am primarily engaged in biotechnology, or physical, engineering, and life sciences research and development as described in codes 541711 and 541712 of the NAICS. I understand that by law, I am required to report and pay the state tax (calculated on the sales price/rentals payable of the property) at the time the property is purchased, removed, converted, or used if: the purchase exceeds the $200 million limitation; the property is removed from California within one year of the date of purchase or lease; the property is converted for use in a manner not qualifying for the exemption; or the property is used in a manner not qualifying for the partial exemption. NAME OF PURCHASER SIGNATURE OF PURCHASER, PURCHASERS EMPLOYEE, OR AUTHORIZED REPRESENTATIVE PRINTED NAME OF PERSON SIGNING TITLE ADDRESS OF PURCHASER PERMIT NUMBER (if you are not required to hold a permit, explain why) TELEPHONE NUMBER ( EMAIL ADDRESS OF PERSON SIGNING ) DATE 1 The Sales and Use Tax Department is making this sample form available for industrys use. However, please note that the Board of Equalization (BOE) is prescribing the form of the certificate as part of Regulation 1525.4, which is pending adoption by the BOE and approval by the Office of Administrative Law. Until the regulation is adopted and approved, the form is subject to change. 2 See Regulation 1525.4 (b)(9) for a description of what is included and excluded from qualified tangible personal property. 3 Official 2012 US NAICS Manual, U.S. Office of Management and Budget, 2012 edition.
Document Title: Partial Exemption Certificate for Manufacturing, Research and Development Equipment
Extracted from PDF file ca-boe-230m.pdf, last modified April 2014
More about the California Partial Exemption Certificate for Manufacturing, Research and Development Equipment
Other California Sales Tax Certificates:
SalesTaxHandbook has an additional five California sales tax certificates that you may need.
|Certificate Code||Certificate Name|
|Partial Sales Tax Exemption Certificate|
|BOE-230||General Sales Tax Resale Certificate|
|BOE-230J||Teleproduction or Other Postproduction Blanket Exemption|
|BOE-230MC||Construction Contracts-Partial Exemption Certificate|
|Foreign Diplomat Exemption Affidavit|
While we do our best to keep our list of California Sales Tax Exemption Certificates up to date and complete, we cannot be held liable for errors or omissions. Is the BOE-230M form on this page out-of-date or not working? Please let us know and we will fix it ASAP.