We reveal some of the questions you need to ask yourself if you handle exempt transactions, both for purchasers and sellers.
Software Exemptions That You Might Not Think Of
In this blog post, we discuss three different types of software exemptions that may be available in some states.
Veterans’ Organization Exemption Enacted in Maryland
As of July 1, 2010, sales to a nationally-organized and recognized organizations of U.S. armed services veterans are exempt from Maryland sales and use tax. The exemption also applies to an auxiliary of the organization or one of its units,…
Treatment of Sales for Resale Modified in Missouri
Enacted Missouri legislation clarifies the sales tax treatment for sales for resale. Purchases of tangible personal property or services for resale are exempt if the subsequent sale is any of the following: subject to tax in Missouri or another state,…
Maine Nonprofit Requirement for Snowmobile Trail Grooming Equipment Exemption Continues
Maine legislation has reinstated the nonprofit requirement for a snowmobile club to qualify for the sales and use tax exemption for purchases of snowmobile trail grooming equipment used directly and exclusively for the grooming of snowmobile trails. When originally introduced,…
Alabama Amends Rule on Exemption for Governmental Entities, Purchases Made by Purchasing Agents
The sales and use tax exemption rule on governmental entities and purchases made through purchasing agents has been amended. The rule is amended to include the ability to use Form ST:PAA-1, Purchasing Agent Appointment. This form will allow an exempt…
A Recent Case Impacts Sellers’ Use of the Resale Exclusion in Missouri
The Missouri Department of Revenue has issued a release discussing the impact of the ICC Management, Inc. v. Director of Revenue case on the resale exclusion. In the case, the court ruled that ICC’s purchases of food and consumables were…
Puerto Rico Updates Exemption Certificate Legislation
Effective, November 1, 2009, the 1994 Puerto Rico Internal Revenue Code has been amended by Act No. 7 of March 7, 2009, eliminating the existing resellers exemption certificates issued for sales and use tax purposes and replacing them with new…
Minnesota Revokes Revenue Notice Regarding Exemption Certificates
A Minnesota revenue notice on exemption certificates has been revoked because there is already a statute that specifically provides the content and form of allowable exemption certificates.
Puerto Rico Reseller Exemptions- Sales and Use Tax Provisions
On March 9, 2009, Act No. 7 was enacted with various changes to the Puerto Rico Internal Revenue Code of 1994. Under this act, exemptions for purchases of inventory to be sold have been eliminated. However, the exemption for items…
Nebraska Sales and Use Tax Exemption Restricted to Nonprofits
Effective October 1, 2008, Nebraska will require previously exempt entities, such as religious organizations, private educational institutions, healthcare facilities, and licensed child care and placement agencies, to have nonprofit status in order to qualify for the sales and use tax…
Utah Modifies Legislation Concerning Exemption for Property
Recent Utah legislation changed the taxability for non-residents who purchase property outside of the state and bring it into Utah for personal use. These items are no longer subject to use tax. To apply, the nonresident individual cannot live or…
Ohio’s Electronic Exemption Certificates Are Valid
Information stored electronically constitutes a valid exemption certificate if the vendor collects the customer’s relevant information during the initial transaction and stores applicable information in its computer system. As part of the initial transaction and for each subsequent transaction thereafter,…
Ohio’s Authorized Exemption Certificates.
The following forms are authorized by the Ohio Department of Taxation for use by Ohio consumers when making exempt purchases. It provides appropriate situations in which each certificate should be used. The forms include general exemption certificates, motor vehicle exemption…
MO Clarifies Exemption Certificates.
Missouri provided guidelines for the application of sales and use tax exemption certificates. Vendors accepting exemption certificates in good faith are not liable for sales tax on the exempt purchase. The certificate must be signed by the buyer and should…
Out-of-State Exempt Entities Need ID Number in IL.
Even if exempt in another state, an out-of-state entity cannot make tax-free purchases in Illinois without presenting its vendor with an exemption identification number issued by the Illinois Department of Revenue. An exemption certificate offered by another state would not…
Illinois Makes Changes to “”Out-of-State Buyer”” Exemption.
The State of Illinois has issued an Informational Bulletin stating changes to the \”out-of-state buyer\” exemption.
Indiana Exemption form eliminated.
The Commissioner\’s Directives No. 24 and 25 declare Form ST-137, and Form ST-136A no longer effective exemption documentation.
South Carolina updates exemptions.
The South Carolina Department of Revenue has compiled a listing of current local sales and use taxes, including their exemptions, of thirty-three counties in the state. The tax type and the effective dates of the exemption include: state exemptions, maximum…
Kentucky requires that an exemption certificate be filled out properly and completely in order to be valid.
If an exemption certificate is filled out properly and completely, the purchaser and not the seller is responsible for any future tax liability. However, if the seller accepts the wrong exemption form or if it is not properly filled out…
Illinois terminates various exemptions.
As of July 1, 2003, Illinois is putting a halt to many of the state\’s exemptions in attempts to help bolster the state\’s revenue.