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

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. On and after January 1, 2012, this bill would exempt from a specified portion of those taxes, the gross receipts from the sale of, and the storage, use, or other consumption of, specified tangible personal property including property purchased for use by a qualified person, as defined, in manufacturing, processing, or fabricating of property, or use in research and development activities, or specified fabrication or research and development clean rooms and equipment. 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.