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Monday, 22 December 2014 00:00

CAWA Partners with California Board of Equalization to Educate Members about Ag Tax Exemptions

CAWA along with County Farm Bureaus, Western United Dairymen and District Two Member of California State Board of Equalization (BOE) Senator George Runner concluded a series of seminars throughout California’s central valley educating the auto parts distribution and retail industry about tax exemptions relating to the sale of agricultural farm equipment, machinery and parts.

The workshops held the first week of December in Bakersfield, Visalia, Fresno, Madera, Merced and Hanford provided hands on training of the partial sales and use tax exemption for farm equipment and machinery as well as California’s new manufacturing exemption.

“CAWA reached out to BOE member George Runner to help a CAWA member in the central valley who was audited by the BOE. After working with our members, we determined that there is a lot of uncertainty and lack of clarity surrounding the partial sales and use tax exemption for qualified purchases,” stated Rodney K. Pierini, CAWA President & CEO. 

The Board of Equalization administers the Sales and Use Tax Law in California.  At issue is the confusion by many auto parts distributors and retailers as to what constitutes a ‘qualified purchase’ when determining the partial sales tax exemption for farm equipment and machinery.  Often times, the onuses is on the parts store or in this case the CAWA member selling products to the farming operation.  Many CAWA members are put in the awkward place of being a tax assessor/collector with their customers. 

As a result of CAWA’s interaction with BOE member George Runner’s office, BOE agreed to (1) conduct educational workshops to help clarify the specifics around this partial sales tax exemption, (2) educate field auditors on the implications of complying with the regulation from a retailer’s point of view and (3) develop a more clearly defined list of what constitutes a ‘qualified purchase’.

“CAWA appreciates BOE member George Runner and his staff for their prompt attention and quick action to help remedy this issue for our members.  We look forward to continuing to work with the BOE to ensure clarity and consistency when determining requirements to quality for the partial sales tax exemption.  

For more information about the partial sales tax exemption for farm equipment and machinery, contact California Legislative Advocate Gary Conover at gary@garyconover.com or 916-233-9655.

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