A new law intended to stimulate the acquisition or lease of manufacturing and Research & Development equipment by certain qualified businesses will come into affect on or after July 1, 2014. Wineries are considered qualified businesses under the law, which means their qualified purchases or leases will be partially exempt from sales taxes, in most cases. The partial exemption reduces the tax rate to 3.3125% plus applicable district taxes. Purchases cannot exceed $200 million in a calendar year and the purchase must remain in California and have a life in excess of one year. We recommend consulting with your accountant, in addition to seeking written approval from the Board of Equalization to ensure that any proposed purchases and/or leases be qualified for the partial tax exemption. More information can be found in Assembly Bill No. 93, Chapter 69.