You would like to know how you can set up your transaction to calculate the 1.5% manufacturing rate in MS instead of the full sales/use tax rate.
- The only two tax codes that are applicable to the 1.5% manufacturing rate are:
- PM020700 - Manufacturing Machinery
- PM020704 - Repair or Replacement Parts for Manufacturing Machinery
- These tax codes must be used on your applicable items in conjunction with a manufacturing exemption type to calculate the reduced rate.
- Entity use code: I) Industrial production or manufacturers
- CertCapture reasoning code: Industrial Prod/Manufacturers