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How do I set up a partial exemption for customer located in California?

Overview

You want to know how to set up a partial exemption for the state of CA.

Environment

Avalara AvaTax

Resolution

  • AvaTax has two exemption reasons that cover California partial exemption rules
    •  I)Industrial/Manufacturing
      • This will set the CA State tax rate to 2.0625%, but will not effect the local tax rates
    • H)Agricultural
      • This will set the CA State tax rate to 1%, but will also not effect the local tax rates.
  • If you have a partial exemption related to Teleproduction, please review this article
    • This partial exemption does not currently exist as an Entity Use Code or certificate exemption reason
    • You will need to create one or more rules to apply this partial exemption.

Next steps

For more information, read exempt customers from sales tax.