Primary exemptions for use tax in California include:

• Basic Groceries: Exempt to reduce costs on essential food items.

• Prescription Medications: Exempt to support healthcare needs.

• Agricultural Supplies: Exempt for items used directly in farming and agricultural production.

• Sales to the U.S. Government: Exempt to facilitate federal operations.

• Manufacturing Equipment: Partial exemptions for equipment used in manufacturing processes.

Businesses qualify by:

• Providing Proper Documentation: Present valid exemption certificates during purchases.

• Registering Appropriately: Ensure correct classification with the CDTFA.

• Meeting Specific Criteria: Demonstrate usage purpose, such as agricultural activities.

• Maintaining Accurate Records: Keep detailed records of exempt purchases and certificates.

Proper application and documentation enable businesses to leverage use tax exemptions, reducing tax liabilities and ensuring compliance with California’s tax regulations.