§ 44-18.1-18 Administration of exemptions.– (A) Each member state shall observe the following provisions when a purchaserclaims an exemption:
(1) The seller shall obtain identifying information of thepurchaser and the reason for claiming a tax exemption at the time of thepurchase as determined by the governing board.
(2) A purchaser is not required to provide a signature toclaim an exemption from tax unless a paper exemption certificate is used.
(3) The seller shall use the standard form for claiming anexemption electronically as adopted by the governing board.
(4) The seller shall obtain the same information for proof ofa claimed exemption regardless of the medium in which the transaction occurred.
(5) A member state may utilize a system wherein the purchaserexempt from the payment of the tax is issued an identification number thatshall be presented to the seller at the time of the sale.
(6) The seller shall maintain proper records of exempttransactions and provide them to a member state when requested.
(7) A member state shall administer use-based andentity-based exemptions when practicable through a direct pay permit, anexemption certificate, or other means that does not burden sellers.
(8) After December 31, 2007, in the case of drop shipmentsales, member states must allow a third party vendor (e.g., drop shipper) toclaim a resale exemption based on an exemption certificate provided by itscustomer/re-seller or any other acceptable information available to the thirdparty vendor evidencing qualification for a resale exemption, regardless ofwhether the customer/re-seller is registered to collect and remit sales and usetax in the state where the sale is sourced.
(B) Each member state shall relieve sellers that follow therequirements of this section from the tax otherwise applicable if it isdetermined that the purchaser improperly claimed an exemption and to hold thepurchaser liable for the nonpayment of tax. This relief from liability does notapply to a seller who fraudulently fails to collect the tax; to a seller whosolicits purchasers to participate in the unlawful claim of an exemption; to aseller who accepts an exemption certificate when the purchaser claims anentity-based exemption when (1) the subject of the transactions sought to becovered by the exemption certificate is actually received by the purchaser at alocation operated by the seller and (2) the state in which that locationresides provides an exemption certificate that clearly and affirmativelyindicates (graying out exemption reason types on the uniform form and postingit on a state's web site is an indicator) that the claimed exemption is notavailable in that state.
(C) Each state shall relieve a seller of the tax otherwiseapplicable if the seller obtains a fully completed exemption certificate orcaptures the relevant data elements required under the Agreement within 90 dayssubsequent to the date of sale.
(1) If the seller has not obtained an exemption certificateor all relevant data elements as provided in § 44-18.1-18, subsection (C)the seller may, within 120 days subsequent to a request for substantiation by amember state, either prove that the transaction was not subject to tax by othermeans or obtain a fully completed exemption certificate from the purchaser,taken in good faith. For purposes of this section, member states may continueto apply their own standards of good faith until such time as a uniformstandard for good faith is defined in the Agreement.
(2) Nothing in this section shall affect the ability ofmember states to require purchasers to update exemption certificate informationor to reapply with the state to claim certain exemptions.
(3) Notwithstanding the aforementioned, each member stateshall relieve a seller of the tax otherwise applicable if it obtains a blanketexemption certificate for a purchaser with which the seller has a recurringbusiness relationship. States may not request from the seller renewal ofblanket certificates or updates of exemption certificate information or dataelements when there is a recurring business relationship between the buyer andseller. For purposes of this section a recurring business relationship existswhen a period of no more than twelve months elapses between sales transactions.
§ 44-18.1-18 Administration of exemptions.– (A) Each member state shall observe the following provisions when a purchaserclaims an exemption:
(1) The seller shall obtain identifying information of thepurchaser and the reason for claiming a tax exemption at the time of thepurchase as determined by the governing board.
(2) A purchaser is not required to provide a signature toclaim an exemption from tax unless a paper exemption certificate is used.
(3) The seller shall use the standard form for claiming anexemption electronically as adopted by the governing board.
(4) The seller shall obtain the same information for proof ofa claimed exemption regardless of the medium in which the transaction occurred.
(5) A member state may utilize a system wherein the purchaserexempt from the payment of the tax is issued an identification number thatshall be presented to the seller at the time of the sale.
(6) The seller shall maintain proper records of exempttransactions and provide them to a member state when requested.
(7) A member state shall administer use-based andentity-based exemptions when practicable through a direct pay permit, anexemption certificate, or other means that does not burden sellers.
(8) After December 31, 2007, in the case of drop shipmentsales, member states must allow a third party vendor (e.g., drop shipper) toclaim a resale exemption based on an exemption certificate provided by itscustomer/re-seller or any other acceptable information available to the thirdparty vendor evidencing qualification for a resale exemption, regardless ofwhether the customer/re-seller is registered to collect and remit sales and usetax in the state where the sale is sourced.
(B) Each member state shall relieve sellers that follow therequirements of this section from the tax otherwise applicable if it isdetermined that the purchaser improperly claimed an exemption and to hold thepurchaser liable for the nonpayment of tax. This relief from liability does notapply to a seller who fraudulently fails to collect the tax; to a seller whosolicits purchasers to participate in the unlawful claim of an exemption; to aseller who accepts an exemption certificate when the purchaser claims anentity-based exemption when (1) the subject of the transactions sought to becovered by the exemption certificate is actually received by the purchaser at alocation operated by the seller and (2) the state in which that locationresides provides an exemption certificate that clearly and affirmativelyindicates (graying out exemption reason types on the uniform form and postingit on a state's web site is an indicator) that the claimed exemption is notavailable in that state.
(C) Each state shall relieve a seller of the tax otherwiseapplicable if the seller obtains a fully completed exemption certificate orcaptures the relevant data elements required under the Agreement within 90 dayssubsequent to the date of sale.
(1) If the seller has not obtained an exemption certificateor all relevant data elements as provided in § 44-18.1-18, subsection (C)the seller may, within 120 days subsequent to a request for substantiation by amember state, either prove that the transaction was not subject to tax by othermeans or obtain a fully completed exemption certificate from the purchaser,taken in good faith. For purposes of this section, member states may continueto apply their own standards of good faith until such time as a uniformstandard for good faith is defined in the Agreement.
(2) Nothing in this section shall affect the ability ofmember states to require purchasers to update exemption certificate informationor to reapply with the state to claim certain exemptions.
(3) Notwithstanding the aforementioned, each member stateshall relieve a seller of the tax otherwise applicable if it obtains a blanketexemption certificate for a purchaser with which the seller has a recurringbusiness relationship. States may not request from the seller renewal ofblanket certificates or updates of exemption certificate information or dataelements when there is a recurring business relationship between the buyer andseller. For purposes of this section a recurring business relationship existswhen a period of no more than twelve months elapses between sales transactions.
§ 44-18.1-18 Administration of exemptions.– (A) Each member state shall observe the following provisions when a purchaserclaims an exemption:
(1) The seller shall obtain identifying information of thepurchaser and the reason for claiming a tax exemption at the time of thepurchase as determined by the governing board.
(2) A purchaser is not required to provide a signature toclaim an exemption from tax unless a paper exemption certificate is used.
(3) The seller shall use the standard form for claiming anexemption electronically as adopted by the governing board.
(4) The seller shall obtain the same information for proof ofa claimed exemption regardless of the medium in which the transaction occurred.
(5) A member state may utilize a system wherein the purchaserexempt from the payment of the tax is issued an identification number thatshall be presented to the seller at the time of the sale.
(6) The seller shall maintain proper records of exempttransactions and provide them to a member state when requested.
(7) A member state shall administer use-based andentity-based exemptions when practicable through a direct pay permit, anexemption certificate, or other means that does not burden sellers.
(8) After December 31, 2007, in the case of drop shipmentsales, member states must allow a third party vendor (e.g., drop shipper) toclaim a resale exemption based on an exemption certificate provided by itscustomer/re-seller or any other acceptable information available to the thirdparty vendor evidencing qualification for a resale exemption, regardless ofwhether the customer/re-seller is registered to collect and remit sales and usetax in the state where the sale is sourced.
(B) Each member state shall relieve sellers that follow therequirements of this section from the tax otherwise applicable if it isdetermined that the purchaser improperly claimed an exemption and to hold thepurchaser liable for the nonpayment of tax. This relief from liability does notapply to a seller who fraudulently fails to collect the tax; to a seller whosolicits purchasers to participate in the unlawful claim of an exemption; to aseller who accepts an exemption certificate when the purchaser claims anentity-based exemption when (1) the subject of the transactions sought to becovered by the exemption certificate is actually received by the purchaser at alocation operated by the seller and (2) the state in which that locationresides provides an exemption certificate that clearly and affirmativelyindicates (graying out exemption reason types on the uniform form and postingit on a state's web site is an indicator) that the claimed exemption is notavailable in that state.
(C) Each state shall relieve a seller of the tax otherwiseapplicable if the seller obtains a fully completed exemption certificate orcaptures the relevant data elements required under the Agreement within 90 dayssubsequent to the date of sale.
(1) If the seller has not obtained an exemption certificateor all relevant data elements as provided in § 44-18.1-18, subsection (C)the seller may, within 120 days subsequent to a request for substantiation by amember state, either prove that the transaction was not subject to tax by othermeans or obtain a fully completed exemption certificate from the purchaser,taken in good faith. For purposes of this section, member states may continueto apply their own standards of good faith until such time as a uniformstandard for good faith is defined in the Agreement.
(2) Nothing in this section shall affect the ability ofmember states to require purchasers to update exemption certificate informationor to reapply with the state to claim certain exemptions.
(3) Notwithstanding the aforementioned, each member stateshall relieve a seller of the tax otherwise applicable if it obtains a blanketexemption certificate for a purchaser with which the seller has a recurringbusiness relationship. States may not request from the seller renewal ofblanket certificates or updates of exemption certificate information or dataelements when there is a recurring business relationship between the buyer andseller. For purposes of this section a recurring business relationship existswhen a period of no more than twelve months elapses between sales transactions.
