In order to comply with the Streamlined Sales and Use Tax Agreement (“the Agreement”), the Iowa Department of Revenue has amended a rule regarding the determination of a sale and sale price. Previously, if an exemption certificate was not taken in good faith by a retailer, both the seller and the buyer who presented the certificate could be held liable for the tax if that buyer used the purchased good or service for a purpose that was taxable. Under the new rule, the “good faith” requirement on the part of a seller is replaced by a different standard, a “relaxed good-faith standard.” A seller can accept a properly completed exemption certificate, but does not need to follow up with the buyer to ensure that the claimed exemption applies to the buyer. A retailer who accepts a properly completed exemption certificate with an absence of fraudulent intent and who has not solicited a buyer to unlawfully claim an exemption is protected by the certificate in the event that a buyer makes a taxable use of a purchase. (Rule 701-15.3, Iowa Department of Revenue, effective January 9, 2008)