California Sales Tax Exemptions
| Exemption Reason | Form (CDTFA-) | Issued By | Notes | XMPT Delivery |
|---|---|---|---|---|
| Resale | 230 | Purchaser | For items purchased for resale. Purchaser must have a valid seller's permit or note why they're not required to have one. | Create |
| Manufacturing and Research & Development | 230-M | Purchaser | For qualified purchases of manufacturing or R&D equipment. Partial exemption applies only to state portion of sales tax. | Create |
| Construction Contracts for Manufacturing | 230-MC | Contractor | For contractors performing construction contracts for qualified manufacturing/R&D persons. | Create |
| Farm Equipment and Machinery | 230-D | Purchaser | For qualified sales and purchases of farm equipment and machinery. Partial exemption from state portion of sales tax. | Create |
| Diesel Fuel for Farming/Food Processing | 230-G | Purchaser | For purchases of diesel fuel used in farming or food processing. Partial exemption from state portion. | |
| Timber Harvesting Equipment | 230-H | Purchaser | For qualified purchases of timber harvesting equipment and machinery. | |
| Blanket Exemption | 230-B | Purchaser | For purchasers making recurring exempt purchases from the same seller. | |
| Aircraft Common Carrier | 230-Q | Purchaser | For aircraft sold to common carriers, foreign governments, or nonresidents. | |
| Aircraft or Aircraft Parts | 230-Z | Purchaser | For aircraft parts used in repairing/maintaining aircraft used as common carriers. |
Multi-state forms available:
| Form | Issued By | XMPT Delivery | Revision |
|---|---|---|---|
| MTC Uniform Sales Tax Certificate | Purchaser | Create | October 14, 2022 |
| BSC Border States Commission | Purchaser | Create | October, 1995 |
Notes:
California uses several different exemption certificate forms depending on the type of exemption being claimed.
Form CDTFA-230 is the standard resale certificate used by businesses purchasing items for resale.
Form CDTFA-230-M is specifically for manufacturing equipment exemptions, which apply to certain manufacturing equipment and research and development equipment.
Form CDTFA-230-MC is for interstate and foreign commerce exemptions.
Nonprofit organizations must apply for exempt status using form CDTFA-214 and receive a Seller's Permit marked "For Exempt Sales Only."
Unlike many states, California does not have a blanket exemption for nonprofit organizations. Even organizations with 501(c)(3) status must generally collect and remit sales tax on items they sell unless specifically exempt.
California's partial manufacturing exemption reduces (but does not eliminate) the tax rate on qualifying manufacturing equipment purchases.
Food products for human consumption are generally exempt without requiring an exemption certificate (with some exceptions like hot prepared food).
Sellers must maintain exemption certificates for at least four years after the date of the purchase.
All partial exemption certificates are applicable only to the state portion of the sales tax (currently 5%) and do not exempt local taxes. The purchaser must provide the completed form to the seller at the time of purchase or within a specific timeframe. Most forms can be used as either single-purchase or blanket certificates for recurring purchases.