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

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. That law provides various exemptions from those taxes. This bill would, until January 1, 2017, exempt from a specified portion of those taxes the gross receipts from the sale of, and the storage, use, or other consumption in this state, of tangible personal property, purchased for use by a qualified person, primarily in manufacturing or other processes, as specified, in research and development, and for use by a contractor purchasing that property for use in a construction contract, as specified. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated in these laws. This bill would specify that this exemption does not apply to local sales and use taxes and transactions and use taxes. This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.