|Issue Overview|| |
Entity use code I for manufacturing will reflect the CA partial exemption change in our system on July 1, 2014. Entity Use Code I (for manufacturers) will tax at the reduced rate at the state level; local tax will apply. We adjusted the Entity Use Code because an exemption certificate is required to obtain the reduced rate.
However, if the customer is not using Entity Use Code I, then custom rules will need to be created for any codes they determine should qualify.