|
1 |
ARTWORK |
Original
works of art purchased for
display in museums and public places. |
|
2 |
FEDERAL
GOVERNMENT |
o
Purchases from
federal government –
federal government holds title to item purchased. Federal Acquisition
Regulation (FAR) clause documenting government is required.
o
Sales to the federal
government – payment must
be made directly to the vendor by the US Government. |
|
3 |
STATE
GOVERNMENT
(non-California) |
Sales to or
purchases from
"non-California" state government agencies. |
|
4 |
FOOD
PRODUCTS |
Exempt food
products (excludes
catering related services). |
|
5 |
FREIGHT |
Goods
delivered by common carrier, contract carrier or US Mail.
o
Shipping charges should
be separately stated from handling charges which are taxable.
o
See BOE Publication 100 – Shipping & Delivery Charges for chart.
|
|
6 |
INTANGIBLE
PROPERTY |
Intangible
property (patents,
licenses, copyrights, etc.). |
|
7 |
NEWSPAPERS &
PERIODICALS |
Distributed
without charge and issued
between 4-60 times per year. |
|
8 |
OCCASIONAL
SALE |
Purchase from
a person who is not engaged in a business requiring a seller’s permit.
o
"Occasional Sales
Affidavit" is required and must be approved by Tax Services. |
|
9 |
PRESCRIPTION
MEDICINES |
Medicines
used to treat humans –
includes items implanted in the body. |
|
10 |
PRINTED SALES
MESSAGES |
Printed
material must advertise a
good or service, and be delivered by vendor to recipient by common
carrier or USPS at no cost to recipient.
o
Exemption Certificate
must be issued by Tax Services. |
|
11 |
PURCHASED FOR
RESALE |
Item
purchased for resale.
o
Resale Certificate must
be issued to vendor by Tax Services. |
|
12 |
REPAIR &
INSTALLATION LABOR |
o
Repair labor
is exempt if taxable parts
are stated separately on invoice.
o
Installation labor
is exempt if no
tangible property is created or assembled. |
|
13 |
SERVICES |
Services
where no tangible personal
property is received. |
|
14 |
SOFTWARE
– CANNED
|
Electronically delivered
– no tangible media such as a CD or DVD received.
o
Vendor’s invoice should
state product is delivered electronically.
o
See Software License – CA Sales Tax Quick Reference Guide. |
|
15 |
SOFTWARE
– CUSTOM |
Custom
software prepared to
special order of the customer and related maintenance agreements,
regardless of the method of delivery. |
|
16 |
SOFTWARE
– OPTIONAL MAINTENANCE
AGREEMENTS
Tangible personal property
received
|
Maintenance relates to purchase of
prewritten or “canned” software and is optional.
o Lump sum charge for
“optional” software maintenance is separately stated on invoice.
o Upgrades and updates
are received on tangible media such as CDs during the term of the
maintenance agreement.
o
Partial
Exemption: 50% of lump sum exempt, 50% taxable.
o
See Software Maintenance – CA Sales Tax Quick Reference Guide. |
|
17 |
SOFTWARE
– OPTIONAL MAINTENANCE
AGREEMENTS
No tangible personal property
received
|
Maintenance
relates to purchase of prewritten or “canned” software and is
optional.
o
Lump sum charge for
“optional” software maintenance is separately stated on invoice.
o
All maintenance
received electronically during the term of the agreement, no tangible
media such as CDs received.
o
100% of the lump
sum is exempt.
o
See Software Maintenance – CA Sales Tax Quick Reference Guide. |
|
18 |
SOFTWARE
RELATED CONSULTING SERVICES
– OPTIONAL & SEPARATELY STATED ON
INVOICE |
Purchased in
connection with custom or prewritten software. |
|
19 |
TELEPRODUCTION EQUIPMENT
|
Partial
exemption for Qualified Tele-production Equipment
o
Section 6378
certificate required – limited to Theater, Film & Television. |
|
20 |
USE OUTSIDE
OF CALIFORNIA |
Item will be
shipped by vendor to point outside California
for use exclusively outside of
California. |