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Why is Avatax calculating the wrong tax rate for Manufacturer exempt customers in California?

Overview

California has made manufacturing partially exempt going forward from Jan 1st 2016 to 3.3125 percent (Source: https://www.boe.ca.gov/sutax/manufac...ns.htm#Sellers). Avatax seems to be charging a different rate? 

Environment

Avalara Avatax

Resolution

  • Avalara breaks apart the jurisdictions for taxation, which is why you are seeing a 'State' rate of 2.06125. 
  • The Exemption BOE page says "3.3125 percent", so we are showing the jurisdictions for which the equation is (2.06125[State] + .25[County] + 1.0[Local type tax) = 3.3125 + [any tax that is a DISTRICT labeled tax].
  • If your transaction has an Origin and Destination in California, your County and Local tax types will be origin based, see What States have Special Sourcing for more information on Mixed sourcing.