Sales and use taxes: exemption: sustainable development: manufacturing.

The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, and provides various exemptions from the taxes imposed by that law. This bill would exempt from a specified portion of those taxes, for calendar years beginning on and after January 1, 2011, the gross receipts from the sale of, and the storage, use, or other consumption in this state of, sustainable development equipment investments of tangible personal property purchased for use by a qualified person, as specified, and tangible personal property used primarily during the research and development process on qualified research. The bill would also exempt from a specified portion of those taxes, for calendar years beginning on and after January 1, 2013, the gross receipts from the sale of, and the storage, use, or other consumption of, tangible personal property purchased by a qualified person for use primarily in any stage of the manufacturing, processing, refining, fabricating, or recycling of property, as specified, and tangible personal property purchased for use by a contractor purchasing that property for use in the performance of a construction contract for the qualified person who will use the property as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or as a storage facility for use in connection with the manufacturing process. This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes. This bill would take effect immediately as a tax levy.