§237-29.53  Exemption for contracting orservices exported out of State.  (a)  There shall be exempted from, andexcluded from the measure of, taxes imposed by this chapter, all of the valueor gross income derived from contracting (as defined under section 237-6) orservices performed by a person engaged in a service business or calling in theState for use outside the State where:

(1)  The contracting or services are for resale,consumption, or use outside the State; and

(2)  The value or gross income derived from thecontracting or services performed would otherwise be subject to the tax imposedunder this chapter on contracting or services at the highest rate.

For the purposes of this subsection, the seller orperson rendering the contracting or services exported and resold, consumed, orused outside the State shall take from the customer, a certificate or anequivalent, in a form the department prescribes, certifying that thecontracting or service purchased is to be otherwise resold, consumed, or used outsidethe State.  Any customer who furnishes this certificate or an equivalent shallbe obligated to pay the seller or person rendering the contracting or services,upon demand, if the contracting or service purchased is not resold or otherwiseconsumed or used outside the State, the amount of the additional tax which byreason thereof is imposed upon the seller or person rendering the contractingor service.

(b)  There shall be exempted from, and excludedfrom the measure of, taxes imposed by this chapter, all of the value or grossincome derived from contracting (as defined in section 237-6) or servicesperformed by a person engaged in a service business or calling in the State fora purchaser who resells all of the contracting or services for resale, consumption,or use outside the State pursuant to subsection (a).  For the purposes of thissubsection, the seller or person rendering the contracting or services for apurchaser who resells the contracting or services for resale, consumption, oruse outside the State shall take from the purchaser, a certificate or anequivalent, in a form that the department prescribes, certifying that thecontracting or services purchased is to be for resale, consumption, or useoutside the State pursuant to subsection (a).  Any purchaser who furnishes thiscertificate or an equivalent shall be obligated to pay the seller or personrendering the contracting or services, upon demand, if the contracting orservices purchased is not resold in its entirety to a customer of the purchaserwho has complied with subsection (a), the amount of the additional tax which byreason thereof is imposed upon the seller or the person rendering thecontracting or service. [L 1999, c 70, §1; am L 2000, c 198, §6]