CA AB1812

Exempts from state sales and use taxes, effective January 1, 2011, purchases of manufacturing equipment and related property used by qualified manufacturers in the production, processing, refining, fabricating, or recycling of goods

Defines "qualified person" as businesses in NAICS codes 3111-3399 and 5112 (manufacturing and related industries) and their affiliates included in combined tax reporting groups

Exemption covers machinery, equipment, computers, pollution control devices, special-purpose buildings, and fuels used in manufacturing, but excludes consumables with less than one-year useful life, furniture, inventory, and equipment for extraction or finished product storage

Exemption does not apply to local sales and use taxes, transactions and use taxes, or specific state taxes; purchaser must provide exemption certificate to retailer

If property is removed from California, converted to non-exempt use, or used in a non-qualifying manner within one year of purchase, purchaser becomes liable for sales tax on the original purchase price