CA AB1911

Exempts qualified manufacturers from state sales and use taxes on manufacturing equipment and machinery purchased for use in the manufacturing process, effective January 1, 2013.

Applies to businesses in NAICS Industry Groups 3111-3399 and 5112, including their affiliated companies in unitary groups, engaged in manufacturing, processing, refining, fabricating, or recycling activities.

Covers qualified tangible personal property including machinery, equipment, computers, software, pollution control devices, special purpose buildings, and fuels used in the manufacturing process, but excludes consumables, furniture, inventory, and equipment used in administration or marketing.

Exemption does not apply to local sales and use taxes imposed by counties, cities, or districts, or to state taxes deposited in the Local Revenue Fund 2011, Local Public Safety Fund, or other specified funds.

Requires purchasers to provide exemption certificates to retailers and prohibits the exemption if property is removed from California or converted to non-exempt use within one year of purchase.