California Construction Contracts-Partial Exemption Certificate
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 Construction Contracts-Partial Exemption Certificate (Form BOE-230MC) on this page. For other California sales tax exemption certificates, go here.
California gives partial sales and use tax exemptions to qualified people involved in certain qualified activities. These activities include construction. The partial exemption reduces the sales tax rate from 7.5% to 3.3%. Claiming the exemption is simple: whenever a vendor sells a qualifying product, he should get this exemption form signed by the purchaser. Vendors must make sure that they get the necessary signature before they bill the purchaser. Vendors are advised to keep the exemption certificate for at least four years from the date of the transaction.
Construction Contracts-Partial Exemption CertificateBOE-230-MC (5-14) CONSTRUCTION CONTRACTSPARTIAL EXEMPTION CERTIFICATE FOR MANUFACTURING, RESEARCH AND DEVELOPMENT EQUIPMENT STATE OF CALIFORNIA 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. I hereby certify that the tangible personal property described below and purchased from: SELLERS/LESSORS NAME SELLERS/LESSORS ADDRESS (street, city, state, zip code) is qualified tangible personal property and will be used by me in the performance of a construction contract for a qualified person who will use that property as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or as a research or storage facility for use in connection with those processes. Description of qualified tangible personal property purchased 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 further certify I am performing a construction contract for a qualified person 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 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 if I use the property for any purpose other than indicted above, I am required to report and pay the state tax measured by the sales price of the property to me. 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: Construction Contracts-Partial Exemption Certificate
Extracted from PDF file ca-boe-230mc.pdf, last modified November 2005
More about the California Construction Contracts-Partial Exemption Certificate
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-230M||Partial Exemption Certificate for Manufacturing, Research and Development Equipment|
|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-230MC form on this page out-of-date or not working? Please let us know and we will fix it ASAP.