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Partial Exemption for Industrial or Manufacturing in AL, LA, MS, MO, or CA

Overview

How to apply a state-wide partial exemption for Industrial/Manufacturing in Alabama, California, Louisiana, Missouri, or Mississippi.

Resolution

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.