California Partial Sales Tax Exemption

Effective July 1, 2014 through 2030, the California Department of Tax and Fee Administration's Regulation 1525.4 – Manufacturing and Research and Development Equipment – allows “partial sales and use tax exemption” on certain manufacturing and research and development equipment purchases and leases.

January 1, 2017 through June 30, 2030
The partial exemption rate is 3.9375 percent, making the partial sales and use tax rate equal to 4.6875 percent for San Francisco County and 5.9375 percent for South San Francisco, San Mateo County.

Things I Need to Know or Do

A Partial Exemption Certificate for Manufacturing, Research and Development Equipment (CDTFA-230-M) is required to be completed for every product. A signed form for every applicable product must be attached to your BearBuy cart. Have the Principal Investigator or department financial manager certify and sign the Partial Exemption Certificate.

In BearBuy, navigate to the General section within the Requisition Summary tabs. Click the edit button next to the section containing the CA Partial Sales Tax name. Check the CA Partial Sales Tax checkbox and then click the Save button.  Then complete the shopping process. For detailed instructions, please refer to the CA Partial Sales Tax Exemption Job Aid.

Version Date: September 2019