How to apply a state-wide partial exemption for Industrial/Manufacturing in Alabama, California, Louisiana, Missouri, or Mississippi.
At the time of this writing, entity use code I (Industrial production or manufacturers) applies a partial exemption in AL, LA, and MS only when using tax codes PM020704 and PM020700. A full exemption is applied when using this entity use code with any other tax code in these states.
Entity use code I applies a partial exemption to any tax code in CA.
Entity use code I applies a full exemption to tax codes PM020704 and PM020700 in MO.
To return a partial exemption rate for manufacturing machinery and equipment in each state:
In AL, LA, or MS: use entity use code I and tax codes PM020704 and PM020700.
In MO: use entity use code I and machinery tax codes that are not PM020704 and PM020700.
In CA: use entity use code I, regardless of the tax code.