In two recent amendments to California regulations, the State Board of Equalization stated that the partial manufacturing equipment exemption as it relates to the purchase and lease of tangible personal property used in manufacturing is no longer in effect as of January 1, 2004. This is due to the fact that non-aerospace employment in the state dropped below the 100,000 job threshold provided for in the Revenue and Taxation Code Section 6377. As a result of the amendments, no retailer or “qualified person” may claim the exemption for any purchases or leases entered into after December 31. 2003. For our previous news item on this topic, click here. (California Reg. 1525.2, California Reg. 1525.3)