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Daily Tax Report: State

California Appeals Office Finds Corporation Not Entitled to Tax Exemption for Purchasing Non-Depreciated Molds

July 11, 2019, 9:07 PM

The California Office of Tax Appeals (OTA) April 29 found that Taxpayer corporation wasn’t entitled to a sales and use tax exemption on purchases of non-depreciated molds. Taxpayer used molds in its glass manufacturing processes. Taxpayer filed a claim for refunds on its use of molds. However, the Department of Tax and Fee Administration (CDTFA) denied its claim. The OTA observed that the law required the property to have a useful life of one year or more in order to qualify for the exemption, but excluded properties deducted by the de minimis safe harbor election. The molds in question were...

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