How Californians Can Save on Sales Tax at TCW
Regardless of your beliefs about civic duties, paying taxes is no fun. If your business is in California you're probably paying some steep taxes. But did you know that California has a pretty great sales tax partial exemption program for manufacturers? That includes manufacturers of wine, beer, spirits, kombucha, cannabis products, cold brew coffee… We'll preface this with a disclaimer: we're not CPAs, so consult one of them for the nitty-gritty details and to make sure you qualify.
It works like this for businesses based in California: whenever you purchase something for the manufacturing or R&D of wine, beer, spirits, etc. you can claim a partial exemption of 3.9375% (as of 2020). In some cases this cuts sales tax in half. So if you're buying a Ragazzini Must Pump in Sonoma County that normally costs $17,000, you'd pay about $1,400 in sales tax (8.25%). By filling out this form and sending it to us beforehand, you'll only pay $733 in sales tax. Nearly $700 for a form that takes about five minutes to fill out!
This applies to any equipment used for manufacturing or R&D, but it doesn't apply to consumables. Obviously, the line here can get a bit blurry, so talk to your CPA if you're unsure. But no-brainers include pumps, grape processing equipment, presses, destemming/sorting, crush pads.
Unless you like paying extra taxes for some reason, take five minutes to fill out this form and send it to us before you buy. Give us a call if you have any questions!