Skip to main content
Avalara Help Center

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

Overview

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

Environment

AvaTax

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.

To return a reduced 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 CA: use entity use code I, regardless of the tax code.