New Tax break for small manufacturers

At the March 1 meeting of the Greater Tehachapi Economic Development Council, Tom Mendes regional representative of the State Board of Equilization presented a new tax exemption available to many small businesses. He told the group that most people don't know that if they produce anything, they may only have to pay about half of the sales tax on any equipment purchased after July 1, 2014. There are just a few forms to fill out and the claim can be retroactive

He said that there are about 500 or more different codes in manufacturing that can affect businesses like bakeries, breweries, print shops or even the retrofit of a building used for manufacturing. Coleen Kohnen told everyone that when her oven had to be replaced last year, forcing her to close for two weeks, she was able to use the exemption on the purchase of her new $40,000 oven, saving $1,600 in sales tax. Michele Dorner added that Dorner Family Vineyard had been able to use the exemption as well for the purchase of their new equipment

City Manager Greg Garrett said that "this is an important piece of information that can benefit a lot of local businesses" and wants to put it on the City's website and social media sites.

Mendes said that if anyone wants more information, please call him at

(661) 632-3523 or (661) 480-8701. His email address is [email protected]