CalChamber Applauds Assembly’s Passage of AB 1951

Sales and Use Tax Exemption Will Support Manufacturing Jobs;
Keep CA Competitive

The California Chamber of Commerce today welcomed news that the California Assembly has passed AB 1951 (Grayson). The bill provides a sales and use tax exemption for the purchase of manufacturing, and research and development (R&D) equipment, expanding investment and production opportunities in California.

“AB 1951 sends an important message: California is serious about retaining and attracting high-quality jobs and production,” said Preston Young, CalChamber policy advocate. “Every California manufacturing job supports at least 2.5 other jobs.”

In supporting the bill, CalChamber and a large coalition of allied groups emphasized that AB 1951 will provide California manufacturers the opportunity to continue to lead and compete in a domestic and global economy that operates on razor-thin margins. Further, the bill will facilitate further innovation, production of wide-ranging goods, and provide high-quality jobs throughout California’s regionally diverse economies.

The measure is important to California because the state currently ranks among the highest in the nation in state and local sales tax rates. While the base state sales tax rate is 6 percent, when combined with local and district portions, the sales and use tax rate can reach up to 10.75 percent.

The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit our website at