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The Connecticut Department of Revenue Services has issued an informational publication concerning the proper use of resale certificates. The gross receipts from the sale of a taxable item or service are subject to sales tax unless the purchaser issues a properly completed resale or exemption certificate to the retailer at the time of the sale. Retailers must keep a copy for their records. The publication discusses who may issue resale certificates, what information must be included on a resale certificate, and the retailer’s responsibility in accepting resale certificates.

Retailers may only accept resale certificates in good faith from the issuer. Resale certificates may be issued for one purchase or may be issued as a blanket certificate for a continuing line of purchases. Connecticut resale certificates should have the tax identification number from the issuer’s state of business or, if none, the Federal Employer Identification Number. If an issuer is not required to have a Connecticut Sales and Use Tax Permit, the issuer should attach a statement to the resale certificate stating that the issuer is not required to have a Connecticut Sales and Use Tax Permit because it is not making sales in Connecticut or making sales that are otherwise subject to Connecticut sales and use taxes (Informational Publication 2009 (15), Connecticut Department of Revenue Services, April 8, 2009).


In a revenue notice, Kansas announced that the discount rate extended to Colorado retailers for collecting and remitting Kansas compensating use tax will be reduced to 0% beginning with returns filed on or after July 1, 2009. This came as a result of Colorado announcing a reduction in its discount rate to zero for Colorado retailers as well as Kansas retailers who collect and remit Colorado compensating use tax. (Notice 09-08, Kansas Department of Revenue, June 26, 2009)


Colorado legislation temporarily eliminates the ability of any vendor to retain any amount of state sales tax revenues to compensate for the vendor’s expenses incurred to collect and remit from July 1, 2009 through June 30, 2010. Vendors, however, will not be liable for interest and penalties imposed as a result of an error made due to the change of the vendor fee on any returns prior to August 1, 2009 (S.B. 275, Laws 2009, effective May 18, 2009).


Beginning May 12, 2009 and ending August 14, 2009, the City of Colorado Springs is offering a Tax Amnesty Program that provides an opportunity for businesses within the City to voluntarily pay any past due sales, use, lodgers, auto rental, bicycle and movie admission tax liabilities without penalties and with reduced interest. During this period, interest will be assessed at 6%, instead of the normal 18%. All businesses and individuals who have failed to file a return or have underreported the tax on a previously filed return for any period ending on or before March 31, 2009 are eligible for the program, even if the taxpayer is currently under audit. Taxpayers are not eligible if they have already entered into a written agreement with the City or have accepted a settlement offer. (News Release, City of Colorado Springs, May 11, 2009)


Effective May 23, 2007, the exemption on manufacturing equipment was expanded to include machinery and machine tools, or parts for such machinery, used in the production of electricity from a renewable energy source, including, but not limited to, wind. This exemption applies whether the purchases are capitalized or expensed. The exemption is also applicable to purchases used in the production of electricity in a facility for which a long-term (ten years or more) power purchase agreement was fully executed between February 5, 2001, and November 7, 2006. Other requirements apply. (FYI Sales 10, Colorado Department of Revenue, August 2007).



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