§237-29.53  Exemption for contracting or
services exported out of State.  (a)  There shall be exempted from, and
excluded from the measure of, taxes imposed by this chapter, all of the value
or gross income derived from contracting (as defined under section 237-6) or
services performed by a person engaged in a service business or calling in the
State 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 the
contracting or services performed would otherwise be subject to the tax imposed
under this chapter on contracting or services at the highest rate.



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



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