On July 17, 2014, the California State Board of Equalization (BOE) adopted a regulation to implement the partial sales and use tax exemption for manufacturing and research and development (R&D) equipment which was effective July 1, 2014. The regulation implements, interprets, and makes specific the partial sales and use tax exemption and prescribes the form of the partial exemption certificate that must be furnished to the retailer. The partial exemption reduces the state tax rate to 3.3125% plus applicable district taxes and applies to the state general fund portion of the sales and use tax rate, but does not apply to any local, city, county or district taxes. To see our previous news item on this topic, see California Enacts Manufacturing and R&D Exemption. (News Release 106-14-G, California State Board of Equalization, July 18, 2014)