Hopefully you are all staying safe, healthy and sane during this unprecedented time. We want to make you aware of a new, limited-duration, sales and use tax exemption in California for items such as personal protection equipment (PPE) and the like, when these items are sold to the State during this emergency declaration period.
Additional details are included below, but in short, sales to the State of California of PPE and related items are exempt from sales and use tax until Governor Gavin Newsom amends or resends the current State of Emergency order (N-46-20) he issued in response to the current Covid-19 pandemic.
Please feel free to reach out to us if you have any questions regarding this or any other sales, use, or excise tax related matter and we wish everyone a safe and healthy journey through this pandemic.
EXECUTIVE ORDER N-46-20
- Duration of Exemption: the order was signed on April 7, 2020, and it will remain in effect for the duration of the State of Emergency or until Governor Newsom amends or rescinds Executive Order N-46-20.
- Items Subject to the Exemption Include but are not Limited to the Following: protective masks; gloves; eye protection; gowns; and other critical equipment as may be designated by the Governor’s Office of Emergency Services in consultation with the California Health and Human Services Agency. Please note that this exemption does not apply to sales to or purchases by non-state entities, such as cities, counties, or other private or nonprofit organizations.
- Recommended Documentation to Support the Exempt Sale Includes but is not Limited to the Following:
- a copy of the sales invoice in question;
- evidence of payment made by the State of California; and/or
- an exemption certificate issued by the State of California.
For the full text of EXECUTIVE ORDER N-46-20, click the following link: https://www.gov.ca.gov/wp-content/uploads/2020/04/4.7.20-EO-N-46-20-text.pdf