the best and worst of sales tax administration...the best and worst of sales tax administration...
TRANSCRIPT
THE BEST AND WORST OF SALES TAX ADMINISTRATION
APRIL 2018by Karl Frieden & Fred Nicely1
1 Karl Frieden is COST’s Vice President and General Counsel and Fred Nicely is COST’s Senior Tax Counsel. The authors would like to express their
gratitude to Kavya Rajasekar, recipient of the 2017 Georgetown University Law Center Fellowship at COST, Sonia Shaikh, COST Research Fellow,
and Gordon Yu, COST Research Fellow, for their dedicated efforts in researching and compiling the survey results used to develop this report.
2 Since 2001, the Council On State Taxation (COST) has issued scorecards reviewing the states’ overall tax administration. More recently, first in
2007 with its issuance of an unclaimed property laws scorecard and in 2009 with its issuance of a property tax administrative scorecard, COST
has conducted a more detailed review of administrative practices on select areas of state law. COST Studies (and those of our research arm, the
State Tax Research Institute (“STRI”)) are available at: http://cost.org/state-tax-resources/cost-studies-articles-and-reports/.
3 As used in this Scorecard, unless clearly meant to be used in a different context, the term “sales tax” includes the states’ compensatory “use taxes”
and also includes taxes in states that use nomenclature such as gross receipts, excise or privilege taxes that are the functional equivalent of a sales
tax (e.g., tax has a sale for resale provision). Alaska, Delaware, New Hampshire, Montana, and Oregon are the five states without state sales taxes. Note,
however, that over 100 local governments in Alaska impose a sales tax and most of these states have state and local excise taxes on lodging, etc.
4 See EY/STRI/COST “Total State and Local Business Taxes” study issued August 2017, available at: http://cost.org/globalassets/cost/state-tax-resourc-
es-pdf-pages/cost-studies-articles-reports/fy16-state-and-local-business-tax-burden-study.pdf.
TABLE OF CONTENTSExecutive Summary .................................................1
Separating the Top from the Bottom States ..........2
Introduction to COST ..............................................2
Grading the Sales Tax States ....................................3
Objectivity of the Scorecard .................................3
Scoring System .....................................................3
Summary Grading Chart ..........................................7
Details of Sales Tax Administration Categories ........8
Exemption for Business Inputs ............................8
Fair Sales Tax Administration ................................9
Centralized Sales Tax Administration ..................11
Simplification and Transparency.........................12
Reasonable Tax Payment Administration ............14
Fair Audit and Refund Procedures ......................16
Other Issues .......................................................17
Scorecard Questions as Initially Presented to Taxpayers, Practitioners & Goverment Officials ...........................................18
Scorecard Detailed by State ...................................20
EXECUTIVE SUMMARYThis Scorecard on State Sales and Use Tax Adminis-tration (“Scorecard”) is the first COST scorecard fo-cusing on specific sales tax administration issues.2 All but five states impose sales taxes,3 which in fiscal year 2016 raised over $363 billion in tax revenue for the remaining states (and their localities). This figure represents twenty-two percent of the states’ total tax collections.4 The goal of this Scorecard is similar to the other scorecards issued by COST: to improve tax administrative systems and therefore ultimately increase compliance. It is our experience that tax-payers are more willing to comply with a tax system they perceive to be balanced, fair, and effective. Sales tax administrative systems that violate basic prin-ciples of fairness and efficiency make compliance for sellers and purchasers more difficult and hinder states’ efforts to modernize their sales tax bases.
The Scorecard objectively evaluates state statutes and rules that govern state and local tax depart-ments’ administration of their sales taxes. Important-ly, the states’ differences in tax rates and breadth of the tax base (other than taxing business inputs) are not part of the evaluation. Additionally, other issues such as equal statutes of limitations and interest rates that are already addressed in COST’s Administrative
2
Scorecard, while important to fair sales tax adminis-tration, are not included in this Scorecard to avoid duplicative scoring of state administrative practices.5 This Scorecard evaluates state sales taxes on their effectiveness in taxing personal consumption (and not business inputs), and on implementing uniform, fair, and centralized administration of their sales tax-es.6 To accomplish these purposes, the Scorecard is divided into the following categories:
• Extent of taxation of business inputs or pyramid-ing of sales taxes;
• Fair sales tax administrative practices;
• Uniformity of state and local sales tax bases and centralized administration;
• Simplification and transparency of the sales tax;
• Reasonable tax payment and credits administra-tion; and
• Fair audit and refund procedures.
Similar to other COST scorecards, we also include an “Other Issues” category to capture adverse sales tax administrative practices not directly or sufficiently covered in the above listed six categories.
5 COST’s most recent version of its “Best and Worst of State Tax
Administration Scorecard” is available at: http://cost.org/globalas-
sets/cost/state-tax-resources-pdf-pages/cost-studies-articles-reports/
final-scorecard-in-templateupdatedbookmarked.pdf.
6 In general, the review is based on 2017 laws and regulations, with
some 2018 legislative changes taken into account.
Separating the Top from the Bottom States
The four top states (Indiana, Michigan, Ohio and Wis-consin) share key elements of sales tax administra-tion that separate them from other states. All are full members of the Streamlined Sales and Use Tax Agree-ment (SSUTA) and score high on parts of the score-card relating to adoption of that agreement (e.g., simplification; exemption certificate administration; current database of rates and boundaries; and cen-tral administration). Three of these states (Indiana, Michigan and Ohio) earn better than average scores on the exemption of business inputs. Finally, all four states score high on fair audit and refund proce-dures. Conversely, the bottom three states (Colorado, Louisiana, and New Mexico) perform poorly across virtually all Scorecard categories. None of the three states are members of SSUTA. All three of these low-performing states receive worse than average scores on the exemption of business inputs. Final-ly, two of the three states (Colorado and Louisiana) earn poor grades on central sales tax administration.
INTRODUCTION TO COSTThis Scorecard is COST’s first scorecard to objective-ly analyze the states’ state and local administration of their sales taxes. COST’s membership is composed of approximately 550 companies engaged in inter-state and international business that conduct busi-ness in every state. Virtually all COST members are either sellers collecting sales tax on behalf of the states, and/or are purchasers accruing sales tax due. COST members file sales tax returns in every state and the District of Columbia. COST has long sup-ported the states’ efforts via the Streamlined Sales and Use Tax Agreement (SSUTA)7 and federal legis-lative initiatives to improve the states’ administra-tion of their sales taxes.8 While the administrative
7 More information on the SSUTA is available at: http://www.stream-
linedsalestax.org/. Importantly, the information the SSUTA states
provide in their disclosed practices on their SSUTA taxability matrix
was very helpful to evaluate those states administrative practices.
8 The COST Board has adopted a policy statement on how Congress
should provide certain states with remote seller collection authority,
“Simplification of the Sales, Use, or Similar Transactional Tax System,”
is available at: http://cost.org/globalassets/cost/state-tax-resources-
pdf-pages/cost-policy-positions/simplification-of-the-sales-and-use-
and-similar-transaction-tax-system-2-26-13-adopted-2.pdf.
States’ Overall Scorecard Grades
Top-Ranked Sales Tax Administration States:• Indiana • Michigan• Ohio• Wisconsin
Bottom-Ranked Sales Tax Administration States• Colorado• Louisiana• New Mexico
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
States’OverallScorecardGradesN/A 0-9 10-13 14-17 18-22 22+
1
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
States’OverallScorecardGradesN/A 0-9 10-13 14-17 18-22 22+
1
3
rules which the SSUTA requires its member states to follow have helped simplify and make the sales tax laws more uniform among its members and are included as part of this evaluation, in total, the SSUTA items only cover about one-quarter of the categories in the Scorecard.9
The issuance of scorecards is only one of the meth-ods COST uses to improve overall state and local tax administration. COST also actively provides ed-ucation via schools, regional meetings, workshops, and national conferences, provides comments and testimony on state and local tax legislation, and files amicus curiae briefs addressing important state and local tax litigation pending before the courts.
GRADING THE SALES TAX STATESThis Scorecard evaluates multiple criteria in six primary subject areas: 1) exemptions for business inputs; 2) fair sales tax administrative practices; 3) centralized administration of state and local sales taxes; 4) sales tax simplification and transparency; 5) fair tax payment and credits administration; and 6) reasonable audit and refund procedures. As indicat-ed above, we also include an “Other Issues” category to address additional sales tax administration issues. Each of these six categories contain several subcate-gories. A more detailed explanation of each category and subcategory follows the Summary Grading Chart.
Objectivity of the Scorecard
The primary goal of the Scorecard is to provide a nationwide perspective for state tax policymakers (legislators and executive branch officials) on the best state sales tax administrative practices, and to provide a comparative measure of the fairness and efficiency of their current administrative practices to that of other sales tax states. It is our hope that this Scorecard will drive changes to ensure that sales taxes are administered more effectively, fairly, and without undue administrative burdens. For virtually all of the items evaluated in the Scorecard, there are some (or many) states that have adopted the identi-fied “best practice.” While most of the Scorecard is
9 Additionally, for the SSUTA states, select information provided in the
disclosed practices on their taxability matrices was used to evaluate
those states’ administrative practices. Available at: http://www.
streamlinedsalestax.org/otm/.
based on a state’s sales tax laws, some subcategories, such as a revenue agency’s effort to impose a tax on digital goods or access to prewritten software, address issues a state revenue agency creates when it attempts to impose a tax on products or services without clear legislative support. Thus, certain is-sues covered by this Scorecard can be addressed through legislative action, while other issues can be addressed through administrative action of a state’s revenue agency.
Scoring System
This Scorecard grades each state based on an ac-cumulated point total which is then converted for each category into a letter grade. For each category, we award only a whole letter grade, while the final grade for a state can have a + or – added on. Points for each subcategory are based on COST’s determination of the relative importance of each issue to a fair and efficient sales tax system.
Below is a brief explanation of categories and sub-categories reviewed by COST, along with the points structure for each category and the resulting grade for each category. As a general matter across all cat-egories, a greater accumulated point total corre-sponds to a lower letter grade.
Exemption for Business Inputs (total of 8 points)
Excessive taxation of business inputs violates the principle that consumption taxes should be im-posed only on end user consumption, and not on intermediate business inputs. The following subcat-egories were used to evaluate a state’s taxation of business inputs:
Percentage of Tax Derived from Business- to-Business Transactions (“B2B”): (two points) A state with a business share of total sales tax of more than 35 percent is assessed one point. A state
It is our hope that this Scorecard
will drive changes to ensure that
sales taxes are administered more
effectively, fairly, and without
undue administrative burdens.
4
with a business share of total sales tax of more than 45 percent is assessed two points.10
Manufacturing Equipment Exemption: (two points) A state with a true integrated plant ex-emption is not assessed any points. A state with an exemption for equipment primarily or directly used in manufacturing is assessed one point. A state with a partial tax exemption, limited exemption (e.g., only new equipment), or no exemption is as-sessed two points.
Manufacturing Inputs/Materials Exemption: (one point) A state that exempts almost all materi-als and supplies used in the manufacturing process is not assessed any points. A state with a limitation on the inputs/material exemption (e.g., must be-come part of the manufactured product) is assessed one point.
Service Provider Taxation on Inputs & Outputs: (three points) A state that taxes both the equipment used by wired and/or wireless service providers and which subjects those services to tax is assessed one point. A state that taxes both the equipment used by cable companies and subjects the service to tax is assessed one point. Lastly, a state that subjects the equipment used by gas and/or electric service pro-viders and also subjects those services to tax is as-sessed one point.
Category Grading: 0-1 points A, 2 points B, 3-4 points C, 5-6 points D, and 7-8 points F
10 Percentages are based on revised 2016/2017 EY/STRI/COST Study
on the taxation of business inputs, more detailed report forthcom-
ing in 2018. See also “What’s Wrong with Taxing Business Services?”
issued April 2013, available at: http://cost.org/globalassets/cost/state-
tax-resources-pdf-pages/cost-studies-articles-reports/sales-taxation-of-
services-and-business-inputs-study.pdf.
Fair Sales Tax Administration (total of 5 points)
Sellers are agents that act on behalf of the states to collect the tax from purchasers and should be com-pensated for collecting the tax. Additionally, sellers should not have excessive burdens imposed on them when purchasers claim they are exempt from the tax. Finally, businesses that purchase products and do not know at the time of sale whether those products will be used in a taxable or exempt manner should be able to obtain direct pay permits from the state to self-accrue the tax. The following subcatego-ries are used to evaluate the fairness of a state’s sales tax administration.
Exemption/Resale Certificate: (two points) A state that does not impose a good faith requirement upon a seller when accepting a certificate (absent fraud) up to 90 days from the date of sale, allows at least 120 days on audit to perfect a certificate, allows for the full use of the MTC or SSUTA certificate, and does not require sellers to capture/verify exemption account numbers is not assessed any points. Any state that fails one of the above criteria is assessed one point for each issue, with a maximum of two points.
Seller Compensation: (two points) A state with no seller compensation or de minimis compensa-tion (e.g., less than $1,000 per month or $12,000 per year) is assessed two points. A state with no local taxes that provides at least 0.5% seller compensation, or a state that has local tax jurisdictions with at least 0.75% seller compensation is assessed no points. A state between those two thresholds is assessed one point.
Broad Direct Pay Permit: (one point) A state that does not have a broad direct pay permit issuance (e.g., not limited to specific industries) and/or has a high threshold (e.g., over $1 million per year) for use of such a permit is assessed one point.
Category Grading: 0-1 points A, 2 points B, 3 points C, 4 points D, and 5 points F
Excessive taxation of business inputs
violates the principle that consumption
taxes should be imposed only on
end user consumption, and not on
intermediate business inputs.
… sellers should not have
excessive burdens imposed on
them when purchasers claim they
are exempt from the tax.
5
Centralized Sales Tax Administration (total of 5 points)
Over two-thirds of the states allow local jurisdic-tions to impose a sales tax. If such local taxes are imposed, they should be reasonable and centrally administered.
Excessive Local Jurisdictions: (one point) A state with over 50 local tax jurisdictions that, based on the 2010 U.S. Census numbers has an average popu-lation-to-jurisdiction ratio of less than 20,000 people, is assessed one point.11
Central Administration: (three points) A state is assessed one point if some or all local jurisdictions administer their sales tax. A state is also assessed one point if the local tax base differs from the state tax base. Lastly, a state is assessed one point if local ju-risdictions can exercise other autonomy in their ad-ministration of the tax (e.g., separate appeals).
Current & Historical Rate/Jurisdiction Data-base: (one point) A state with no local jurisdictions and no tax rate changes in the past five years is as-sessed no points. A state with tax rate changes in the past five years and/or has local jurisdictions that does not have a current and historical rate and juris-dictional database is assessed one point; otherwise, no points.
Category Grading: 0-1 points A, 2 points B, 3 points C, 4 points D, and 5 points F
Sales Tax Simplification and Transparency (total of 5 points)
The complexity of sales and use tax administration in the U.S. – with over 10,000 state and local tax-ing jurisdictions and an expanding internet-based economy – places a premium on efforts such as the Streamlined Sales Tax Project (SSUTA) to make sales tax administration simpler and more uniform while still preserving autonomy to tax (or not tax) certain defined products. It is certainly the prerogative of states to tax the new digital economy, but if they choose to do so it should be through clear legisla-tive authority and not by administrative fiat. Finally, sellers and purchasers should also be able to rely on
11 The number of local jurisdiction data was obtained from multiple
sales tax software providers. The totals were derived from the first
half of 2017.
written documentation provided by a state’s reve-nue agency.
SSUTA State: (two points) A full member SSUTA state in compliance with the SSUTA is assessed no points. An SSUTA state not in full compliance is as-sessed one point. All other states are assessed two points. Note, a state in full compliance with the SSU-TA also benefits in other areas of this Scorecard (e.g., exemption certificate administration, current data-base, and aspects of central administration).
Digital Goods/Merely Accessing Software Transparency: (two points) A state revenue agency that is asserting digital goods/products are subject to tax without clear legislative support is assessed one point. Additionally, a state that is asserting that mere electronic access to prewritten software is subject to tax without clear legislative support is assessed one point.
Liability Relief: (one point) A state that does not provide broad liability relief for sellers and purchas-ers relying on written authoritative guidance is as-sessed one point.
Category Grading: 0-1 points A, 2 points B, 3 points C, 4 points D, and 5 points F
Reasonable Tax Payment and Tax Credit Administration (total of 7 points)
The sales tax states should implement reasonable payment procedures and provide full credit for taxes first imposed and legally paid to another state.
The complexity of sales and use tax
administration in the U.S. – with
over 10,000 state and local taxing
jurisdictions and an expanding
internet-based economy – places
a premium on efforts such as the
Streamlined Sales Tax Project (SSUTA)
to make sales tax administration
simpler and more uniform …
6
Advance Payments: (two points) A state that re-quires no advance payments before the sales tax return due date is assessed no points. A state that has only one advance payment before the sales tax return date is assessed one point, including states that only require the advance payment once a year. A state that requires more than one advance payment per month is assessed two points.
Credit for Sales Tax Paid to Other States: (two points) A state that limits its credit paid to another jurisdiction to tax imposed under its use tax (i.e., no credit if the state revenue agency asserts its sales tax is being imposed) is assessed one point. In addition, a state that limits how it applies the credit (e.g., cred-it for state tax only or credit limited to state-to-state and local-to-local taxes) is assessed one point.
Periodic Lease Treatment: (two points) A state that accelerates certain types of periodic lease pay-ments (e.g., motor vehicles) and/or continues to tax certain types of periodic leases when the prod-uct purchased for the entire lease payment is not located in that state (e.g., continued use of origin- based sourcing) is assessed one point. A state that does not give full credit to states using such a period-ic lease payment structure is also assessed one point.
Bad Debt Application to Private-Label Credit Cards: (one point) A state with a bad debt provision that does not also apply to private-label credit cards is assessed one point.
Category Grading: 0-1 points A, 2 points B, 3-4 points C, 5 points D, and 6-7 points F
Fair Audit and Refund Procedures (total of 4 points)
The state should have a written mechanism to pro-vide purchasers the ability to claim a refund with-out having to go through a seller. Additionally, the state revenue agency, and not private and/or contin-gent fee auditors/litigants, should be auditing and/or asserting sellers have under or over collected tax. These responsibilities should not be undermined by allowing non-revenue agency actors to assert actions through false claims act or class action lawsuits.
Written Process for Purchaser to Claim Refund Directly from State: (one point) A state that does not have a written process (policy and/or law) al-
lowing purchasers to claim a refund directly from the state revenue agency is assessed one point.
No False Claims Act or Class Action Suits: (two points) A state that allows false claims acts (e.g., qui tam actions) to apply to state and local sales taxes is assessed one point, as is a state that allows class action suits to apply to such taxes.
No Private or Contingent Fee Auditing: (one point) A state that currently uses private and/or con-tingent fee auditors is assessed one point.
Category Grading: 0 points A, 1 point B, 2 points C, 3 points D, and 4 points F
Total Points – Summary of Grading
The ultimate grade a state receives is based on the total number of points awarded for all subcategory items and “other issues.” It is not based on grades re-ceived for each individual category. The following is the grading by overall points:
A = 0 to 5 points;
A- = 6 to 9 points;
B+ = 10 points;
B = 11 to 12 points;
B- = 13 points;
C+ = 14 points;
C = 15 to 16 points;
C- = 17 points;
D+ = 18 to 20 points;
D = 21 to 22 points; and
F = over 22 points.
… the state revenue agency,
and not private and/or contingent
fee auditors/litigants, should be
auditing and/or asserting sellers
have under or over collected tax.
7
Summary Grading Chart
StateExempt
B2B8 pts
FairAdmin5 pts
CentralAdmin5 pts
Simple & Trans.
5 pts
ReasonablePayment
7 pts
FairAudits4 pts
Other Issues
Total Points
Grade
Alabama 5 5 4 4 3 1 0 22 D
Alaska n/a n/a n/a n/a n/a n/a n/a n/a n/a
Arizona 3 4 2 4 5 1 0 19 D+
Arkansas 6 1 2 0 4 0 0 13 B-
California 6 5 1 2 4 0 0 18 D+
Colorado 7 3 5 4 3 1 1 24 F
Connecticut 7 4 0 5 2 1 0 19 D+
Delaware n/a n/a n/a n/a n/a n/a n/a n/a n/a
D.C. 4 5 1 4 3 0 1 18 D+
Florida 7 4 1 3 1 2 0 18 D+
Georgia 3 4 1 1 3 1 1 14 C+
Hawaii 7 5 1 3 1 2 1 20 D+
Idaho 2 4 2 3 1 2 0 14 C+
Illinois 4 2 4 3 6 2 1 22 D
Indiana 2 1 0 0 3 0 1 7 A-
Iowa 5 2 2 1 6 0 0 16 C
Kansas 4 3 3 0 3 0 0 13 B-
Kentucky 7 3 0 0 2 1 0 13 B-
Louisiana 6 4 5 4 2 2 1 24 F
Maine 3 5 0 3 3 1 0 15 C
Maryland 5 5 0 3 3 0 0 16 C
Massachusetts 5 4 0 3 3 0 1 16 C
Michigan 3 1 0 0 2 1 0 7 A-
Minnesota 3 3 1 1 4 1 0 13 B-
Mississippi 7 5 1 3 4 2 0 22 D
Missouri 2 2 2 3 4 1 0 14 C+
Montana n/a n/a n/a n/a n/a n/a n/a n/a n/a
Nebraska 6 2 2 1 2 0 0 13 B-
Nevada 5 2 1 0 3 2 0 13 B-
New Hampshire n/a n/a n/a n/a n/a n/a n/a n/a n/a
New Jersey 3 2 0 1 6 0 0 12 B
New Mexico 8 5 2 4 3 1 0 23 F
New York 3 4 2 4 5 2 0 20 D+
North Carolina 3 3 0 0 4 2 0 12 B
North Dakota 6 2 2 0 3 1 1 15 C
Ohio 3 0 0 0 4 0 1 8 A-
Oklahoma 3 2 2 0 4 1 0 12 B
Oregon n/a n/a n/a n/a n/a n/a n/a n/a n/a
Pennsylvania 5 4 1 3 3 0 1 17 C-
Rhode Island 5 3 0 0 3 0 0 11 B
South Carolina 4 4 3 5 2 0 0 18 D+
South Dakota 7 3 1 0 3 1 0 15 C
Tennessee 4 4 2 2 2 1 0 15 C
Texas 6 3 3 4 1 2 0 19 D+
Utah 6 1 1 0 2 1 0 11 B
Vermont 6 2 2 1 3 0 0 14 C+
Virginia 4 5 2 2 3 0 0 16 C
Washington 5 3 1 1 3 1 0 14 C+
West Virginia 2 3 1 0 3 1 0 10 B+
Wisconsin 5 1 1 0 1 0 0 8 A-
Wyoming 6 3 0 0 3 1 0 13 B-
8
DETAILS OF SALES TAX ADMINISTRATION CATEGORIES
12 See footnote 10. Of the $363 billion paid in sales taxes in FY 2016,
$153.9 billion was collected from business.
There are many metrics that can be used to evaluate the states’ sales tax administration systems. In develop-ing this initial scorecard, COST has focused on six cat-egories that reflect a broad spectrum of fair, efficient and uniform sales tax administration rules. While these categories overlap in part with the rules adopted by the member states of the Streamlined Sales and Use Tax Agreement, they encompass a number of addition-al criteria that define optimal sales tax administration.
Exemption for Business Inputs
Exemption for Business Inputs – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
ExemptionforBusinessInputs– States’Grades
N/A 0-1pts 2pts 3-4pts 5-6pts 7-8pts
2
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
ExemptionforBusinessInputs– States’Grades
N/A 0-1pts 2pts 3-4pts 5-6pts 7-8pts
2
While economists generally agree that the ideal sales tax system would tax final personal consumption and not tax any business-to-business transactions, U.S. state and local sales tax systems completely violate this prin-ciple. States collect, on average, 42% of their total sales tax revenue from business inputs.12 Not a single state has a business share of sales tax lower than Indiana at 31.8%. New Mexico has the highest business input share of sales taxes at 60.4%. The ramifications from taxing business inputs are significant, including inefficient tax “pyramiding,” a lack of transparency, higher consumer prices, and/or reduced economic activity (which can result in lower employment and/or wages).
State and Local Sales Taxes Imposed on Business Inputs
Business Inputs Share of Total Sales Tax Collected
State and Local Sales Taxes Imposed on Business Inputs
47%
32%
37%
32%
46%
39%37%
33%60%
42%
58%
48%
52%
41%
44%
58%
46%
42%
47%
39%
37% 32%
37%
41%
36% 35%
43%
40%42%
40%
41%
37%
44%
42%
36% DC42%
MD42%
NJ43%
42%
CT39%
RI36%
MA48%
VT51%
35%
40%
44%
HI36% 2
25%- 35% 36%- 45% 46%+
Business Inputs Share of Total Sales Tax Collected
StatesWithNoSalesTax
N/AN/A
N/A
N/A
State and Local Sales Taxes Imposed on Business Inputs
47%
32%
37%
32%
46%
39%37%
33%60%
42%
58%
48%
52%
41%
44%
58%
46%
42%
47%
39%
37% 32%
37%
41%
36% 35%
43%
40%42%
40%
41%
37%
44%
42%
36% DC42%
MD42%
NJ43%
42%
CT39%
RI36%
MA48%
VT51%
35%
40%
44%
HI36% 2
25%- 35% 36%- 45% 46%+
Business Inputs Share of Total Sales Tax Collected
StatesWithNoSalesTax
N/AN/A
N/A
N/A
State and Local Sales Taxes Imposed on Business Inputs
47%
32%
37%
32%
46%
39%37%
33%60%
42%
58%
48%
52%
41%
44%
58%
46%
42%
47%
39%
37% 32%
37%
41%
36% 35%
43%
40%42%
40%
41%
37%
44%
42%
36% DC42%
MD42%
NJ43%
42%
CT39%
RI36%
MA48%
VT51%
35%
40%
44%
HI36% 2
25%- 35% 36%- 45% 46%+
Business Inputs Share of Total Sales Tax Collected
StatesWithNoSalesTax
N/AN/A
N/A
N/A
One key item for manufacturers is how a state impos-es its sales tax on manufacturing operations occurring in a state. Manufactured products are ultimately resold, so the equipment, supplies and materials consumed in a manufacturing operation should all be exempt from a state’s sales tax.13 Georgia does this well, as its exemp-tion covers the entire facility under an “integrated plant” theory. Conversely, states like New Mexico, which offers no equipment exemption, and Kentucky, which limits the inputs exemption to raw materials that become an ingredient or component part of the manufactured prod-uct, score poorly in this category. Utah recently passed legislation (2018 UT S.233) which broadens its manufac-turing exemption; however, it will not be effective until the state collects more revenue from remote sellers.
13 Most states require any manufactured products not sold and used by
the manufacturer in providing services to others to self-remit the tax on
those products (which should also be exempt if the service is taxable).
Breadth of States’ Manufacturing Equipment Exemptions
Breadth of States’ Manufacturing Equipment Exemptions
32% DCMDNJ
CTRIMAVT
HI
NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption
3
States With NoSalesTaxWA
OR
CANV
AZ
AK
ID
MT
WY
UT
ND
SD
NE
CO
NM
KS
OK
MN
IA
MO
AR
TX
WIMI
IL IN
KY
TN
MS
LA
AL GA
FL
SC
NC
VAWV
OHPA
NY
VTNH
ME
MACT
NJMD
Breadth of States’ Manufacturing Equipment Exemptions
32% DCMDNJ
CTRIMAVT
HI
NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption
3
States With NoSalesTaxWA
OR
CANV
AZ
AK
ID
MT
WY
UT
ND
SD
NE
CO
NM
KS
OK
MN
IA
MO
AR
TX
WIMI
IL IN
KY
TN
MS
LA
AL GA
FL
SC
NC
VAWV
OHPA
NY
VTNH
ME
MACT
NJMD
Breadth of States’ Manufacturing Equipment Exemptions
32% DCMDNJ
CTRIMAVT
HI
NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption
3
States With NoSalesTaxWA
OR
CANV
AZ
AK
ID
MT
WY
UT
ND
SD
NE
CO
NM
KS
OK
MN
IA
MO
AR
TX
WIMI
IL IN
KY
TN
MS
LA
AL GA
FL
SC
NC
VAWV
OHPA
NY
VTNH
ME
MACT
NJMD
Breadth of States’ Manufacturing Equipment Exemptions
32% DCMDNJ
CTRIMAVT
HI
NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption
3
States With NoSalesTaxWA
OR
CANV
AZ
AK
ID
MT
WY
UT
ND
SD
NE
CO
NM
KS
OK
MN
IA
MO
AR
TX
WIMI
IL IN
KY
TN
MS
LA
AL GA
FL
SC
NC
VAWV
OHPA
NY
VTNH
ME
MACT
NJMD
Breadth of States’ Manufacturing Equipment Exemptions
32% DCMDNJ
CTRIMAVT
HI
NoneorRestrictedExemption Direct orPrimaryUseExemption Integrated Plant Exemption
3
States With NoSalesTaxWA
OR
CANV
AZ
AK
ID
MT
WY
UT
ND
SD
NE
CO
NM
KS
OK
MN
IA
MO
AR
TX
WIMI
IL IN
KY
TN
MS
LA
AL GA
FL
SC
NC
VAWV
OHPA
NY
VTNH
ME
MACT
NJMD
States collect, on average,
42% of their total sales tax
revenue from business inputs.
9
Additionally, the Scorecard looks at several service in-dustries and evaluates whether a state is double tax-ing both the production end of providing a service (i.e., the equipment) and the consumption end (i.e. the sale to end-user consumers). Idaho scores well in this category, as its service industries are taxed at the production end, but services are not taxed to the consumer. On the other hand, states like Texas and Florida double tax their service industries and thus score poorly. Manufacturing and the double taxation of service providers is by no means an exhaustive list of business-to-business transaction tax concerns.
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Inefficiencies created when a state taxes certain products or services that are almost exclusively business-to-business transactions (e.g., employment services, data processing services, etc.) are not ad-dressed in this initial Scorecard; however, they may be addressed in future versions.
Fair Sales Tax Administration
Fair Tax Administration – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
FairTaxAdministration– States’GradesN/A 0-1pts 2pts 3pts 4pts 5pts
6
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
FairTaxAdministration– States’GradesN/A 0-1pts 2pts 3pts 4pts 5pts
6
With 45 individual states (and the District of Columbia) imposing their own versions of a sales tax, both sellers and purchasers can be burdened with numerous un-fair administrative practices. One way to improve the administration of a state’s sales tax is not to burden sellers with the task of policing whether purchased items are not subject to the state’s tax under a pur-chaser exemption or exclusion. Absent a seller com-mitting fraud, states affording exemptions to purchas-ers should audit the purchasers to determine whether their purchases are exempt from a state’s sales tax, and not impose a “good faith” requirement on sellers.
Good Faith Requirement
Good Faith Requirement
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
GoodFaithRequirementImposed NoGoodFaithRequirement
7
StatesWithNoSalesTax
Good Faith Requirement
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
GoodFaithRequirementImposed NoGoodFaithRequirement
7
StatesWithNoSalesTax
A seller should only be required to obtain and re-tain completed exemption/resale certificates. States should also allow sellers to use either the MTC uni-form exemption certificate14 or the SSUTA exemp-tion certificate.15 Lastly, when auditing a seller and
14 See http://www.mtc.gov/Resources/Uniform-Sales-Use-Tax-Exemp-
tion-Certificate.
15 See http://www.streamlinedsalestax.org/uploads/downloads/Forms/
F0003%20Fill%20in%20Exemption%20Certificate%20Form_9_18_09.pdf.
Absent a seller committing fraud,
states affording exemptions to
purchasers should audit the
purchasers to determine whether
their purchases are exempt from a
state’s sales tax, and not impose a
“good faith” requirement on sellers.
10
determining an exemption certificate is not com-plete, a state should allow sellers at least 120 days to capture and obtain information from its purchasers to demonstrate the sales were exempt from tax. Ohio does well in this category because it doesn’t require a “good faith” standard when accepting exemption certificates, allows sellers 120 days to obtain valid certificates on audit, allows use of MTC and SSUTA certification, and does not require sellers to verify exemption account numbers. Maryland, on the other hand, scores poorly because it requires good faith, allows sellers only 60 days to obtain valid certificates on audit, allows only a limited use of MTC and SSU-TA certificates, and requires sellers to capture and verify account numbers. Additionally, unfortunately, D.C. has back-tracked and no longer allows sellers to accept the MTC certificate from purchasers.
Exemption Certificates
Exemption Certificates
AK
HI
ME
RI
VTNHMANY
CT
PANJ
DC
DEWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CAVA
MD
4
MTC SSUTA MTCAndSSUTA NeitherMTCNorSSUTA
Exemption Certificates
AK
HI
ME
RI
VTNHMANY
CT
PANJ
DC
DEWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CAVA
MD
4
MTC SSUTA MTCAndSSUTA NeitherMTCNorSSUTA
Exemption Certificates
AK
HI
ME
RI
VTNHMANY
CT
PANJ
DC
DEWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CAVA
MD
4
MTC SSUTA MTCAndSSUTA NeitherMTCNorSSUTA
Exemption Certificates
AK
HI
ME
RI
VTNHMANY
CT
PANJ
DC
DEWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CAVA
MD
4
MTC SSUTA MTCAndSSUTA NeitherMTCNorSSUTA
States should also provide compensation to ven-dors for the collection and remittance of sales taxes. For purposes of this Scorecard, COST uses a 0.5% compensation threshold for single rate states and a 0.75% threshold for states with local jurisdictions. These thresholds are primarily based on a former Streamlined Sales and Use Tax Agreement provision that generally calls for states to provide compensa-tion at that level.16 This level of compensation is still far below the level identified in a study compiled by PricewaterhouseCoopers in 2006 for the Stream-lined Sales Tax Governing Board that noted sellers under $1 million had average compliance costs of 13.47%, sellers from $1 million to $10 million aver-aged compliance costs of 5.2% and sellers over $10 million incurred compliance costs of 2.17%, with a
16 See former Section 608 of the Streamlined Sales and Use Tax Agreement.
weighted average for all sellers of 3.09%.17 As forced collection agents for the state, it is inequitable for a state to not reimburse sellers for more of their costs to collect and remit state and local sales taxes. States such as Massachusetts and Minnesota score poorly in this category because they offer no vendor com-pensation. Conversely, Colorado scores well in this category because it offers uncapped vendor com-pensation at 3.33% of the state tax due.
Vendor Compensation
Vendor Compensation
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
UncappedVendorComp. LimitedOrCappedVendorComp. NoVendorComp.
9
StatesWithNoSalesTax
Lastly, states should provide a broad direct pay provi-sion that allows business purchasers to acquire prop-erty or services without paying the sales tax to a seller when the taxability of a product is unknown by the purchaser because it could be used in a taxable or non-taxable manner. Such a provision is economical-ly necessary for many businesses and it often makes audits of such purchasers easier for the state. While states may choose a reasonable threshold for purchas-es before granting a direct pay permit, blanket exclu-sions preventing certain industries from obtaining such a permit or an excessive threshold reflects poor sales tax administration. South Carolina does well in
17 The PwC 2006 “Retail Sales Tax Compliance Costs” study is available
at: http://www.streamlinedsalestax.org/uploads/downloads/JCCS_
Part_I__Final_Report_Vol_I_20060407.pdf.
As forced collection agents for the
state, it is inequitable for a state to
not reimburse sellers for more of
their costs to collect and remit
state and local sales taxes.
11
this category because it has a broad-based direct pay provision, while the District of Columbia does poorly because it does not allow direct pay permits.
Direct Pay
Direct Pay
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
BroadDirectPay LimitedDirectPay NoDirectPay
10
StatesWithNoSalesTax
Centralized Sales Tax Administration
One of the biggest burdens on sellers is the wide diver-gence among states in tax bases, taxable product defi-nitions, and the rules and administrative procedures for collection and remittance. This task is compounded by those states that allow their local taxing jurisdictions to use a different tax base, separately administer the tax, and/or have a multitude of local jurisdictions.
Centralized Administration – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
CentralizedAdministration– States’Grades
N/A 0-1pts 2pts 3pts 4pts 5pts
11AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
CentralizedAdministration– States’Grades
N/A 0-1pts 2pts 3pts 4pts 5pts
11
Because zip codes rarely follow local sales tax juris-dictional boundaries, all states with local sales tax jurisdictions inherently make compliance more diffi-cult for sellers and purchasers.
States with Local Sales Tax Jurisdictions
12
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
States with Local Sales Tax JurisdictionsStates With Centralized Administration Of Local Sales Taxes
States With No Local Sales Taxes
States With Local Administration Of Sales Tax
States With No Sales Tax
Further, an excessive number of jurisdictions relative to a state’s population creates more chances for er-rors with diminishing benefits for a state’s local gov-ernments. Any state with over 50 local jurisdictions and a population ratio averaging less than 20,000 people per jurisdiction on average was used as the threshold for determining where any benefit of lo-cal taxes is outweighed by the overall cost imposed on taxpayers. Oklahoma fares poorly in this category because it has 629 local sales tax jurisdictions with a population ratio of 5,946. On the other hand, Con-necticut and Rhode Island have no local sales tax ju-risdictions at all. It is also critical for efficient admin-istration that the state administer all local sales taxes, including all audits, appeals, payments, refunds, ex-emptions, etc. The tax base at the local jurisdiction level also should not differ from the state’s tax base.
Number of Taxing Jurisdictions
… all states with local sales tax
jurisdictions inherently make
compliance more difficult for
sellers and purchasers.
Number of Taxing Jurisdictions
5
1TaxingJurisdiction 2-500TaxingJurisdictions 500+TaxingJurisdictions50+JurisdictionsWithaPopulationRatioofUnder20,000 StatesWithNoSalesTax
AK
32% DCMDNJ
CTRIMAVT
HI
WA
OR
CA
NV
ID
MT
WY
UTCO
AZ NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WIMI
IL IN
KY
TN
MS AL GASC
NC
VAWV
OHPA
NY
VTNH
ME
CTMA
MDNJ
Number of Taxing Jurisdictions
5
1TaxingJurisdiction 2-500TaxingJurisdictions 500+TaxingJurisdictions50+JurisdictionsWithaPopulationRatioofUnder20,000 StatesWithNoSalesTax
AK
32% DCMDNJ
CTRIMAVT
HI
WA
OR
CA
NV
ID
MT
WY
UTCO
AZ NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WIMI
IL IN
KY
TN
MS AL GASC
NC
VAWV
OHPA
NY
VTNH
ME
CTMA
MDNJ
6
!"#
Number of Taxing Jurisdictions
5
1TaxingJurisdiction 2-500TaxingJurisdictions 500+TaxingJurisdictions50+JurisdictionsWithaPopulationRatioofUnder20,000 StatesWithNoSalesTax
AK
32% DCMDNJ
CTRIMAVT
HI
WA
OR
CA
NV
ID
MT
WY
UTCO
AZ NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WIMI
IL IN
KY
TN
MS AL GASC
NC
VAWV
OHPA
NY
VTNH
ME
CTMA
MDNJ
12
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
States with Local Sales Tax JurisdictionsStates With Centralized Administration Of Local Sales Taxes
States With No Local Sales Taxes
States With Local Administration Of Sales Tax
States With No Sales Tax
WA
ID
CA
NV
AZ
UT
NV
CO
NDMN
WY
IL
MS
TN
AL GA
SC
NC
VAWV
PA
NY
VT
OH
FL
IA
MO
AK
LA
SD
NE
KS
OK
TX
NM
OR
MT
NJMD
NH
DE
MACT RIMI
IN
KY
ME
12
Lastly, any state that enacted a tax change in the past five years at the state and/or local level should pro-vide notice of the different tax rates, including the effective date of the rate change(s), on their revenue agency’s website. And, if the state has local jurisdic-tions, a current tax rate and boundary database is needed.
Website with Boundary Database and Rates
14
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database
Website Has Current & Historical Rates And Boundary Database
Website Has Current Rates And Boundary Database, But No Historical Rates
States With No Sales TaxWebsite Only Has Current Rates
14
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database
Website Has Current & Historical Rates And Boundary Database
Website Has Current Rates And Boundary Database, But No Historical Rates
States With No Sales TaxWebsite Only Has Current Rates
14
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database
Website Has Current & Historical Rates And Boundary Database
Website Has Current Rates And Boundary Database, But No Historical Rates
States With No Sales TaxWebsite Only Has Current Rates
14
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database
Website Has Current & Historical Rates And Boundary Database
Website Has Current Rates And Boundary Database, But No Historical Rates
States With No Sales TaxWebsite Only Has Current Rates
14
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Website with Boundary Database and RatesWebsite Has Current & Historical Rates, But No Boundary Database
Website Has Current & Historical Rates And Boundary Database
Website Has Current Rates And Boundary Database, But No Historical Rates
States With No Sales TaxWebsite Only Has Current Rates
A state should also provide full liability relief to sellers relying on a state’s rate and boundary da-tabase. Tennessee does not do well in this cate-gory because while its website has current tax rates, it does not provide historical tax rates or a boundary database. Other states, like Georgia and North Carolina, populate their websites with current rates, historical rates, and a boundary database.
Simplification and Transparency
Simplification and Transparency – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
SimplificationandTransparency– States’Grades
N/A 0-1pts 2pts 3pts 4pts 5pts
15
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
SimplificationandTransparency– States’Grades
N/A 0-1pts 2pts 3pts 4pts 5pts
15
Presently, twenty-four states are active members of the SSUTA, a process that began over seventeen years ago. These states have committed themselves to working with other states and the business com-munity to ease the burdens imposed on sellers to col-lect the states’ sales taxes. The Agreement is a living document—it has been amended at practically every meeting of the Governing Board to address issues raised by the states and the business community.
Unfortunately, the largest sales tax states, including California, Texas, New York, Illinois, and Florida, have not joined the SSUTA. Indeed, while more than one-half of all states with sales taxes are members of SSUTA, by population, nearly two-thirds of the U.S. population live in states that are not members of SSUTA. Thus, businesses in these states do not bene-fit from the extensive uniformity and simplification contained in the 100+ pages of SSUTA language.
Streamlined Sales Tax States
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
ILOHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CA
DC
Streamlined Sales Tax States
16
FullMember AssociateMember Non-MemberNon-SalesTaxMember
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
ILOHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CA
DC
Streamlined Sales Tax States
16
FullMember AssociateMember Non-MemberNon-SalesTaxMember
Besides a commitment to work together on unifor-mity issues, transparent administration of the states’ sales taxes is vital to the fair administration of the tax. This means that taxes should be administered based on clear legislative authority and not guidance issued by a revenue agency expressing its position on the law. E-commerce raises unique tax issues and some states’ tax agencies, unfortunately, have attempted to fill in the legal gaps without having full legislative sup-port for taxing items such as digital goods or merely
… transparent administration of the
states’ sales taxes is vital to the fair
administration of the tax.
13
electronically accessing pre-written software. While COST does not take a position in support or opposi-tion to a state legislature’s decisions on the breadth of its tax base (other than opposing the taxation of business inputs), the determination of taxable goods and services must be done with clear legislative au-thority. Failure to do so adds significant uncertainty, makes the state a less attractive place to do business, and unnecessarily subjects sellers to risk for collect-ing (or not collecting) tax. For example, South Dakota does well in this category because although it impos-es a tax on both digital products and on mere access to pre-written software, it does so via clear statuto-ry authority. Conversely, states like Arizona, which imposes tax via DOR ruling, do not do well in this category. Some states with issues in this area, such as Arizona, have legislation pending to fix this issue. Indiana recently passed legislation in March 2018 to fix this issue. Hopefully, these states and other states lacking clear legislative guidance in this area will leg-islatively fix this issue in the near future.
Taxation of Digital Goods
Taxation of Digital Goods
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
17
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
WY
ID
WA
UT
Taxation of Digital Goods
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
17
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
WY
ID
WA
UT
Taxation of Digital Goods
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
17
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
WY
ID
WA
UT
Taxation of a Person Merely Accessing Pre-Written Software
Taxation of a Person Merely Accessing Pre-Written Software
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
6
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
Taxation of a Person Merely Accessing Pre-Written Software
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
6
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
Taxation of a Person Merely Accessing Pre-Written Software
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoTaxImposed TaxImposedWithoutStatutoryAuthority
6
TaxImposedByStatutoryAuthority
StatesWithNoSalesTax
Another important transparency criterion is assur-ing that both sellers and customers can rely on writ-ten guidance provided by a state tax agency. This relief should be broad and not confined to limited types of written guidance. Several states do poorly in this category because they offer very limited liability relief to sellers or purchasers relying on DOR guid-ance. Meanwhile, California scores well because it offers liability relief to sellers and purchasers relying on CDTFA guidance.
Tax Liability Relief for Sellers Relying on Guidance
Tax Liability Relief for Sellers Relying on Guidance
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
LiabilityRelief LimitedorNoLiabilityRelief
6
Stateswithnosalestax
Tax Liability Relief for Sellers Relying on Guidance
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
LiabilityRelief LimitedorNoLiabilityRelief
6
Stateswithnosalestax
While COST does not take a position
in support or opposition to a state
legislature’s decisions on the breadth
of its tax base (other than opposing
the taxation of business inputs),
the determination of taxable goods
and services must be done with
clear legislative authority.
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
Double Taxation of Select Service Providers: Wired/Wireless, Cable, Electric + Gas
NoDouble Tax
1ServiceIndustry DoubleTaxed 3ServiceIndustriesDouble Taxed2ServiceIndustries Double Taxed
4
StatesWith NoSalesTax
32% DCMDNJ
CTRIMAVT
HI
WA
ORID
CA
NV
MT
WY
UT
AZ
CO
ND
SD
NE
KS
NM
TX
AK
MNWI
MI
IA
MO
OK AR
LA
TN
MS
IL IN OHPA
NY
VT
ME
NH
WVVA
NC
SC
GAAL
FL
MDNJ
MACT
14
Reasonable Tax Payment Administration
Reasonable Tax Payment Procedure – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PA NJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
ReasonableTaxPaymentProcedure– States’Grades
N/A 0-1pts 2pts 3-4pts 5pts 6-7pts
20
AK
HI
ME
RI
VT
NH
MANYCT
PA NJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
ReasonableTaxPaymentProcedure– States’Grades
N/A 0-1pts 2pts 3-4pts 5pts 6-7pts
20
The timing of a seller’s remittances is a key issue for fair tax payment administration. Some states require the tax to be paid in advance of the return, while other states require multiple advance payments. It is much more efficient for sellers to make just one payment per filing period when they file tax returns because it eliminates “guesstimates” and also allows the bulk of purchasers’ returns to be adjusted on the sellers’ tax returns for taxes the sellers refunded to purchasers.18 States like Washington and Indiana do not require advance payments and thus do well in this category. On the other hand, states like Michigan and New Jersey require sellers to make multiple ad-vance payments.
18 Even more troubling is recent lobbying for states to enact “real-time
remittance” by requiring credit card processors to remit the tax
on credit/debit transactions. The myriad of problems with that
approach is addressed in COST’s Policy Statement “Daily Sales Tax
Remittance” available at: http://cost.org/globalassets/cost/state-tax-
resources-pdf-pages/cost-policy-positions/daily-sales-tax-remittance-
policy-statement---draft-for-approval.pdf.
Advance Payments
Advance Payments
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoAdvancePayments 1AdvancePaymentPerMonthorYear
1
MoreThan1AdvancePaymentPerMonth
StatesWithNoSalesTax
Advance Payments
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoAdvancePayments 1AdvancePaymentPerMonthorYear
1
MoreThan1AdvancePaymentPerMonth
StatesWithNoSalesTax
Advance Payments
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
NoAdvancePayments 1AdvancePaymentPerMonthorYear
1
MoreThan1AdvancePaymentPerMonth
StatesWithNoSalesTax
Another growing problem is that some states are im-properly asserting they are imposing a “sales tax” and not a “use tax” on some transactions. While this usu-ally does not create an issue if the tax rates are the same, some states locate their credit for purchasers who paid tax on a product to another state in their “use tax” section of the law. Thus, if the state’s reve-nue agency asserts it is imposing its sales tax, there is no credit allowed in that situation. This Scorecard takes no position on the adequacy of reciprocity pro-visions; however, this issue may be evaluated in the future if it prevents purchasers from obtaining full credit for tax legally due and paid to another state.
Tax Credit Against Sales and Use Tax
AK
HI
ME
RI
VTNHMANY
CT
PA
NJ
MDDE
VAWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CA
DC
Tax Credit Against Sales and Use TaxCreditOnlyAgainstUseTax CreditAgainstBothSalesAndUseTaxes
22
StatesWithNoSalesTax
Another issue is that some states limit credits to just the state’s sales tax if they have no local taxes, or they limit credit for taxes paid at the state level but not those at the local level. While this type of limita-tion itself is administratively unfair, it also raises con-stitutional issues regarding fair apportionment and
15
internal consistency under the Commerce Clause.19 Florida does well in this category because its credit is not limited to use tax and it gives full credit for other states’ state and local taxes. Conversely, Arizo-na does poorly because its credit is limited to use tax and it does not provide credit for other states’ local taxes.
Full Credit For Other States’ State & Local Sales and Use Taxes
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Full Credit For Other States’ State & Local Sales and Use TaxesFullCreditNotAllowedAgainstLocalTaxes FullCreditAllowed
23
StateForStateAndLocalForLocal
StatesWithNoSalesTax
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Full Credit For Other States’ State & Local Sales and Use TaxesFullCreditNotAllowedAgainstLocalTaxes FullCreditAllowed
23
StateForStateAndLocalForLocal
StatesWithNoSalesTax
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Full Credit For Other States’ State & Local Sales and Use TaxesFullCreditNotAllowedAgainstLocalTaxes FullCreditAllowed
23
StateForStateAndLocalForLocal
StatesWithNoSalesTax
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Full Credit For Other States’ State & Local Sales and Use TaxesFullCreditNotAllowedAgainstLocalTaxes FullCreditAllowed
23
StateForStateAndLocalForLocal
StatesWithNoSalesTax
Another concern is the different methods that states use to impose their sales taxes, particularly relating to the taxation of leases (and to high-price items such as motor vehicles). COST believes the best approach for the imposition of periodic lease payments is for the tax to be imposed on each payment based on where the leased property was primarily located when the periodic lease payment was made. For example, Arkansas has no accelerated lease payments. Unfortu-nately, several states, like Iowa and New York, impose their sales tax on the total periodic lease payments upfront or they continue to tax periodic leased prop-erty even though the property is no longer located in that state. Compounding the problem, several state tax agencies assert they will not (or legally cannot) provide credit for the sales tax paid to another state in that situation. Unfortunately, this problem exists for member states of the SSUTA and non-member states alike, and much more uniformity is needed.20
19 See Comptroller of the Treasury of Maryland v. Wynne, 135 S.Ct.
1787 (2015) and Matkovich v. CSX Transportation, 793 S.E.2d 888
(W. Va. 2016); cert. denied Steager v. CSX Transp., Inc., No. 16-1251
(2017).
20 Althought not addressed in this Scorecard, there are also issues with
states imposing their sales tax on motor vehicles that will be titled in
another state based on the lower of the taxing state’s tax rate or the
state where the vehicle will be titled.
… the best approach for the imposition
of periodic lease payments is for the
tax to be imposed on each payment
based on where the leased property
was primarily located when the
periodic lease payment was made.
Accelerated Lease Payments (ALPs)
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN*
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
CO*UT
WY
MT
WA
ORID
NV
CA*DC
Accelerated Lease Payments (ALPs)NoALPsWithCredit
ALPsAndCont’dTaxOnLeasesWithCredit
28
NoALPs,NoCreditALPsAndCont’dTaxOnLeasesWithNoCredit
*CA,CO,TN:Continuestaxoncertainleasepaymentsusingoriginlocation
AK
HI
ME
RI
VTNHMANY
CT
PANJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN*
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
CO*UT
WY
MT
WA
ORID
NV
CA*DC
Accelerated Lease Payments (ALPs)NoALPsWithCredit
ALPsAndCont’dTaxOnLeasesWithCredit
28
NoALPs,NoCreditALPsAndCont’dTaxOnLeasesWithNoCredit
*CA,CO,TN:Continuestaxoncertainleasepaymentsusingoriginlocation
Finally, state treatment of bad debts is invariably dis-torted because sellers that issue private-label credit cards are generally denied a bad-debt deduction on such cards. The clear purpose of the bad debt deduc-tion is for sellers to recoup taxes paid to the state that subsequently are not recovered from consumers due to non-payment. Private-label credit cards dominate over retailer-issued credit cards based on advantages afforded to both retailers and financial institutions. Despite similarities between private-label credit cards and retailer-issued credit cards, the tax consequence of obtaining a bad-debt deduction often differ.21 Penn-sylvania scores well because its bad debt deduction provision applies to private-label credit cards. Maine scores poorly because its bad debt deduction does not apply to private-label credit cards.
21 See William F. Fox, “Sales Tax Policy Considerations for Private Label
Credit Card Defaults” (State Tax Research Institute; 2015) for more
detail. Available at: http://cost.org/globalassets/cost/state-tax-resourc-
es-pdf-pages/cost-studies-articles-reports/sales-tax-policy-consider-
ations-for-private-label-credit-card-defaults.pdf.
16
Bad Debt Deduction
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Bad Debt DeductionBadDebtDeductionDoesNotApplyToPrivate-labelCreditCards
BadDebtDeductionAppliestoPrivate-labelCreditCards
24
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Bad Debt DeductionBadDebtDeductionDoesNotApplyToPrivate-labelCreditCards
BadDebtDeductionAppliestoPrivate-labelCreditCards
24Allowing a bad-debt provision for private-label cards is a necessary because it ensures that the states’ sales tax bad-debt provisions are applied in a fair and neutral manner irrespective of the type of credit card used.
Fair Audit and Refund Procedures
Fair Refund/Audit Procedures – States’ Grades
AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
FairRefund/AuditProcedures– States’GradesN/A 0pts 1pt 2pts 3pts 4pts
7AK
HI
ME
RI
VT
NH
MANYCT
PANJ
DC
DEWV
NC
SC
GA
FL
ILOH
IN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
OR
ID
NV
CAVA
MD
N/A A B C D F
FairRefund/AuditProcedures– States’GradesN/A 0pts 1pt 2pts 3pts 4pts
7
Sellers and purchasers need fair refund procedures to level the playing field between overpayments and underpayments. A state should provide a written process (e.g., a law, regulation, and/or assignment provision) that allows a purchaser to obtain a refund directly from the state in situations where a seller is unwilling or unable to file a refund on behalf of a purchaser. For example, in Nebraska, purchasers can fill out a form to obtain refunds from the state without contacting the seller. Conversely, in Florida, there is no written process for purchasers to obtain refunds directly from the state. State revenue agen-
cies should also be the only entity authorized to audit taxpayers. False claims acts seeking addition-al tax due, or class action suits seeking refunds by third-party litigants are inappropriate. Illinois is a posterchild of what can go wrong when a state al-lows both false claims act lawsuits and class action lawsuits instituted by third-party relators.
False Claims Act
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MD DE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
FalseClaimsAct
26
FalseClaimsActAllowsTaxClaims FalseClaimsActDoesNotApplyToTaxesFalseClaimsActExcludesTaxes NoFalseClaimsAct StatesWithNoSalesTax
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MD DE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
FalseClaimsAct
26
FalseClaimsActAllowsTaxClaims FalseClaimsActDoesNotApplyToTaxesFalseClaimsActExcludesTaxes NoFalseClaimsAct StatesWithNoSalesTax
Class Action Suits
AK
HI
ME
RI
VTNHMANY
CT
PA NJMD DE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
ClassActionSuits
27
ClassActionSuitsAllowed NoKnownUseOfClassActionSuits ClassActionSuitsNotAllowedStatesWithNoSalesTax
*ClassactionsuitinNViscurrentlypending
AK
HI
ME
RI
VTNHMANY
CT
PA NJMD DE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
ClassActionSuits
27
ClassActionSuitsAllowed NoKnownUseOfClassActionSuits ClassActionSuitsNotAllowedStatesWithNoSalesTax
*ClassactionsuitinNViscurrentlypending
Illinois is a posterchild of what
can go wrong when a state allows
both false claims act lawsuits and
class action lawsuits instituted
by third-party relators.
17
Lastly, a state revenue agency should use its own auditors that are directly trained and controlled by the agency. Contingent fee auditing places too much incentive on maximizing the auditor’s fee to the detriment of determining the correct amount of tax owed. Similarly, private contract auditing suffers from inconsistencies and the lack of direct control by the revenue agency. While a state was not penal-ized for the absence of a law prohibiting the use of private and contingent fee auditors, such states are strongly encouraged to enact a law that clearly pro-hibits the use of these types of audits. Both North Carolina and Virginia have prohibited contingent fee and private-contract auditing.
Contingent Fee/Private Auditing
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Contingent Fee / Private AuditingAllowsContingent FeeAuditing
AllowsPrivateContractAuditing
7
DoesNotAllowContingentFeeAndPrivateContractAuditing
DoesNotAllowContingentFee,SomeLocalsUsePrivateContractAuditing
GA:HB811allowscontingent-feeauditing.Nocurrentprivate-contractauditing
MS:Recentlegislation(SB2973,2017)allowscontingentfeeauditing.
AK
HI
ME
RI
VTNHMANY
CT
PA NJ
MDDE
VAWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MNND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CADC
Contingent Fee / Private AuditingAllowsContingent FeeAuditing
AllowsPrivateContractAuditing
7
DoesNotAllowContingentFeeAndPrivateContractAuditing
DoesNotAllowContingentFee,SomeLocalsUsePrivateContractAuditing
GA:HB811allowscontingent-feeauditing.Nocurrentprivate-contractauditing
MS:Recentlegislation(SB2973,2017)allowscontingentfeeauditing.
Other Issues
Certain state tax administration issues do not fit in a specific category or are unique to one or just a few states. One such issue is the burdensome require-ment of including corporate officers’ social security numbers and/or home addresses on each tax return filed with the state. While this information is useful in situations where a company is insolvent, this is a rare instance and other sources of information are available to the tax agencies to obtain this informa-tion as needed. Another issue noted in several states (such as Georgia) is to administratively deny direct pay permit holders interest on overpayments of the tax. These issues are highlighted on the scorecard because they impact fair and efficient sales tax ad-ministration. Each issue is assigned one point.
SSN and Other IssuesSSN and Other Issues
AK
HI
ME
RI
VTNHMANY
CT
PANJ
DC
DEWV
NC
SC
GA
FL
IL OHIN
MIWI
KY
TN
ALMS
AR
LATX
OK
MOKS
IA
MN
ND
SD
NE
NMAZ
COUT
WY
MT
WA
ORID
NV
CAVA
MD
30
SSNAnd/Or HomeAddress OtherIssues
18
SCORECARD QUESTIONS AS INITIALLY PRESENTED TO TAXPAYERS, PRACTITIONERS & GOVERNMENT OFFICIALS22
The questions initially provided to taxpayers, practitioners, and government officials to evaluate each jurisdic-tion are provided below.23
22 This Scorecard could not have been completed without the assistance of the state tax administrators and practitioners that responded to our
questionnaires. The uncompensated time they put into reviewing our analysis of each state’s sales tax law and providing us with feedback is
deeply appreciated. Additionally, COST members provided comments to finalize this Scorecard.
23 Note, not all the questions were used in the final version of this Scorecard.
Intermediate Transactions/ Business Inputs
1. Does the state have an independent tax appeal forum possessing the following elements: the forum is truly independent; the forum is ded-icated to handling tax disputes; the forum’s judges possess requisite tax expertise; and the forum establishes the record for further appeal?
2. Does the state have a manufacturing equipment exemption?
3. Does the exemption cover the entire facility (integrated plant); or provide a more limited exemption (e.g., only equipment used directly in manufacturing)?
4. Does the state have a manufacturing inputs exemption?
5. Does the state have an exemption that applies to the purchase of equipment by the following service providers?
a. Wired and Wireless Telecommunication Service Providers: Are the services them-selves subject to a sales tax or other excise tax when sold to an end use consumer?
b. Cable Service Providers: Are any of the above services subject to a sales tax or other excise tax when sold to an end-use consumer?
c. Electric and Gas Products/Services: Are sales of electricity and gas themselves sub-ject to a sales tax or other excise tax when sold to an end use consumer?
State Sales Tax Administration
1. Does the state have local sales tax jurisdictions; and, if so, approximately how many local sales tax jurisdictions are there?
a. If yes, is the local sales and use tax centrally administered?
b. If yes, do all the local sales tax jurisdictions have to use the same tax base as the state?
2. Does the state impose a “good faith” require-ment on sellers accepting exemption certifi-cates (e.g., the seller can be held responsible for determining whether a purchaser qualifies for an exemption even if the exemption certificate is properly completed)?
3. Does the state allow a seller at least 120 days during an audit to obtain valid exemption certif-icates (please provide number of days)?
4. Can multistate exemption certificates (MTC and SSUTA) be used to claim an exemption?
5. Are sellers required to capture and verify ex-emption account numbers?
6. Does the state provide vendor compensation to some or all sellers?
7. Does the state have a broad-based direct pay provision (i.e., not limited to certain types of manufacturers)?
19
Local Sales Tax Administration
1. Does the tax agency website have a central lo-cation where taxpayers can access sales/use tax laws, current regulations, information releases, forms, and explanations of how the sales/use is applied?
2. Does the state provide both current and histor-ical tax rate and boundary database on its web-site in a format that can be uploaded for use by sellers in their POS systems?
3. Does the state provide broad liability relief to sellers and purchasers when they rely on tax agency’s guidance, including the rate and boundary database?
Simplification and Transparency
1. Is the state a full member of the Streamlined Sales and Use Tax Agreement?
2. Does the state impose a tax on digital products (i.e., digital audio, video and books)?
a. If yes, is the tax on digital products based on the products categorization as a service or some other express reference?
b. If yes, is the tax on digital products based on the enactment of a specific law to tax such products (not administrative position)?
3. Does the state impose a tax on a person merely accessing (no delivery) of pre-written computer software?
a. If yes, is the tax imposed based on the ac-cess to software’s categorization as a service or some other express reference?
b. If yes, is it based on the enactment of a spe-cific law to tax such software (not adminis-trative position)?
Tax Payment Administration
1. Does the state allow taxpayers to remit the tax using ACH debit and credit?
2. Does the state require sellers to make accelerat-ed payments (e.g., payments of the tax prior to the due date of the return)?
a. If so, when are the payments required to be made?
3. Does the state provide credit for sales, use, and similar taxes (e.g., motor vehicle excise tax) imposed by another state?
4. Is the credit for another state’s tax allowed regardless of whether your state is imposing its sales tax or use tax?
5. Does the state allow a full credit for other states’ state, local and similar taxes (e.g., not limited to state-to-state or local-to-local taxes)?
6. Does the credit against sales tax paid include tax paid to another state on accelerated lease payments (e.g., sales tax must be paid upfront for all lease payments)?
7. Does the state have a bad debt provision?
a. If so, does it apply to private-label credit cards?
8. Are officers’ SSNs and/or home addresses re-quired on registration forms or returns?
Audit and Refund Procedures
1. Does the state have a written policy that clearly allows taxpayers to use sampling to the same extent the tax agency can use it?
2. Does the state prohibit the use of both pri-vate-contract auditing and contingent fee audit-ing?
3. Does the state allow sales/use tax assessments to be offset by sales/use tax refunds?
4. Does the state have a written process that allows purchasers to obtain refunds from the state without going through the seller?
5. Does the state preclude or have a process that curtails the application of a false claims act?
6. Does the state preclude or have a process that curtails the application of class action lawsuits to sales and use taxes?
20
SCO
RE
CA
RD
DE
TAIL
BY
STA
TE
ALA
BA
MA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
5%.
Mfg
. eq
uip
. is
tax
able
w/
red
uce
d 1
.5%
rate
. So
me
loca
l rat
es a
lso
red
uce
d. A
C
§ 4
0-2
3-2
(3).
Mfg
. ex
emp
tio
n is
lim
ited
to m
ach
iner
y, p
arts
, an
d a
ttac
hm
ents
use
d
in m
fg.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
eria
ls t
hat
bec
om
e an
ingr
edie
nt
or
com
po
nen
t p
art.
AC
§ 4
0-2
3-1
(a)(
10
);
AC
§ 4
0-2
3-6
0(5
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le, w
/
red
uce
d r
ate
of
1.5%
, dep
end
ing
on
use
.
AC
§§ 4
0-2
3-2
(3),
-61
(b);
AA
C r
.81
0-6
-5-
.36
.01
(4).
Bo
th s
ervi
ces
are
also
tax
ed a
t
con
sum
er le
vel.
AC
§§ 4
0-2
1-8
2(b
), -1
21
.
Cab
le e
qu
ip.:
tax
able
, ho
wev
er
bro
adca
stin
g eq
uip
. has
red
uce
d 1
.5%
rate
. AA
C r
.81
0-6
-2-.9
8, 8
10
-6-1
-.04
(2).
Cab
le is
no
t ta
xed
at
con
sum
er le
vel.
AC
§ 4
0-2
3-1
(a)(
6).
Elec
tric
an
d g
as p
rod
uct
s/se
rvic
es:
tax
able
, w/r
edu
ced
rat
e. A
AC
r.8
10
-6-2
-
.10
1. E
lect
rici
ty a
nd
gas
is t
axed
at
the
con
sum
er le
vel.
AC
§ 4
0-2
1-8
2.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
AA
C
r.81
0-6
-5-.0
2(1
3);
no
ru
le
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
.
on
au
dit
.
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs m
ust
cap
ture
/
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
AA
C r
.81
0-6
-4-.1
0.
Ven
do
r co
mp
.: 5%
of
the
firs
t $1
00 t
ax d
ue,
an
d 2
% o
f
rem
ain
ing
tax
du
e (c
app
ed
at $
400
per
mo
nth
). A
C §
40
-23
-36
; AA
C r
.81
0-6
-4-.0
3.
Dir
ect
pay
lim
ited
to
cer
tain
ven
do
rs, i
ncl
ud
es m
fg.,
tran
spo
rtat
ion
co
mp
any,
and
min
ing.
AC
§ 4
0-2
3-3
1; A
AC
r.81
0-6
-4-.1
4.
902
loca
l tax
juri
sdic
tio
ns
(rat
io o
f
5,18
4).
Som
e ce
ntr
al a
dm
in.,
bu
t n
ot
all l
oca
l
juri
sdic
tio
ns.
In
add
itio
n, s
om
e lo
cals
do
n’t
use
th
e st
ate
app
eals
pro
cess
. AC
§§ 1
1-3
-11
.2(a
), 1
1-
51
-20
0 e
t se
q. S
om
e
loca
l tax
juri
sdic
tio
ns
hav
e d
iffe
ren
t ta
x b
ase
(e.g
., b
ack-
to-s
cho
ol
tax
ho
liday
s an
d f
oo
d).
AC
§ 1
1-5
1-2
01
(a).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s an
d b
ou
nd
ary
dat
abas
e. h
ttp:/
/
reve
nu
e.a
laba
ma
.
gov/
sale
sta
x/
sta
tera
tes.
cfm
.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d w
/
ou
t cl
ear
stat
uto
ry
auth
ori
ty o
n d
igit
al
pro
du
cts.
Acc
ord
ing
to D
OR
,
no
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Lim
ited
liab
ility
rel
ief
to s
elle
rs o
r p
urc
has
ers
rely
ing
on
DO
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. AC
§ 4
0-2
3-6
5. F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
.
AA
C r
.81
0-6
-5-.0
4.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. A
C §
40
-27
-
1, A
rt. V
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o
pri
vate
-lab
el c
red
it
card
s. W
ells
Fa
rgo F
in.,
19 S
o.3
d 8
92 (
Ala
. Civ
.
Ap
p. 2
008)
.
Eff.
Mar
ch 2
018,
pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m s
tate
wit
ho
ut
goin
g th
rou
gh t
he
selle
r.
AC
§ 2
01
8-1
30
,
AC
§ r
. 40
-24
-7.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Patt
erso
n v
.
Gla
dw
in C
orp
.,
835
So. 2
d 1
37
(Ala
. 200
2).
Co
nti
nge
nt
fee
aud
itin
g is
pro
hib
ited
. So
me
loca
ls u
se p
riva
te-
con
trac
t au
dit
ing.
AC
§ 4
0-2
A-6
.
ALA
SKA
– N
ot
Ap
pli
cab
le
21
AR
IZO
NA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
3%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
di-
rect
ly u
sed
in m
fg. A
RS
§ 4
2-5
15
9(B
)(1
).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P d
i-
rect
ly e
nte
rin
g (p
hys
ical
ly in
corp
ora
ted
)
into
pro
du
cts.
AR
S § 4
2-5
15
9(A
)(4
); A
AC
R1
5-5
-12
2.
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. A
RS
§
42
-50
64
(B)(
3).
Bo
th s
ervi
ces
are
tax
ed a
t
con
sum
er le
vel.
AR
S § 4
2-5
06
4(A
).
Cab
le e
qu
ip.:
tax
able
. AR
S § 4
2-5
06
1(B
)
(15
)(a
). S
ervi
ces
are
no
t ta
xed
at
con
-
sum
er le
vel.
AR
S § 4
2-5
06
4(A
).
Elec
tric
an
d g
as e
qu
ip.:
Part
ially
tax
able
;
[gas
an
d e
lect
ric
dis
trib
uti
on
fac
iliti
es a
re
tax
able
]. A
RS
§ 42
-506
1(B
)(4)
; Ele
ctri
city
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed,
exce
pt
for
elec
tric
ity
and
gas
so
ld t
o
qu
alifi
ed m
anu
fact
ure
rs o
r sm
elte
rs. A
RS
§
42-5
063(
A),
(C).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
AR
S
§ 4
2-5
00
9(A
); n
o r
ule
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
.
on
au
dit
.
Lim
ited
use
of
MT
C e
xem
p-
tio
n c
erts
. fo
r re
sale
(o
ther
-
wis
e, it
may
no
t b
e ac
cep
ted
as a
n e
xem
pti
on
cer
t.).
Selle
rs m
ust
cap
ture
/ver
ify
exem
pti
on
acc
ou
nt
nu
m-
ber
s. A
RS
§ 4
2-5
02
2.
Ven
do
r co
mp
.: 1%
of
tax
du
e (c
app
ed a
t $1
0,00
0
per
cal
end
ar y
ear)
. AR
S §
42
-50
17
.
Dir
ect
pay
allo
wed
to
per
-
son
s p
urc
has
ing
$500
,000
or
mo
re o
f TP
P p
er y
ear.
AR
S
§ 4
2-5
16
7(A
).
116
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
55,1
04).
Eff.
1/1/
17, c
entr
al a
d-
min
. of
the
loca
l tax
es.
AR
S § 4
2-6
00
1(A
).
Each
mu
nic
ipal
ity
det
erm
ines
its
tax
bas
e b
ut
mu
st p
ost
chan
ges
in t
he
Mo
del
Cit
y Ta
x C
od
e m
ain
-
tain
ed b
y D
OR
. AR
S
§ 4
2-6
00
2(A
); A
RS
§
42
-60
53
.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bu
t d
oes
no
t h
ave
a
bo
un
dar
y d
atab
ase.
htt
ps:
//w
ww
.azd
or.
gov/
Tra
nsa
ctio
nP
riv-
ileg
eTa
x(TP
T)/
Wh
ats
-
New
/ta
bid
/42
1/
cmd8
02
/arc
h/D
e-
fau
lt.a
spx.
No
t a
full
SSU
TA m
em-
ber
bu
t p
arti
cip
ates
in
SLA
C.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
dig
ital
pro
du
cts.
AA
C R
15
-5-1
54
(B).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Ari
zon
a T
axp
aye
r In
-
form
ati
on
Ru
lin
g N
o.
LR1
1-0
11
, No.
LR
11
-
01
0 (
6/2
2/1
1).
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
.
Selle
rs o
win
g o
ver
$1M
per
yea
r m
ust
mak
e
an a
dva
nce
pay
men
t
each
Ju
ne.
AR
S § 4
2-
50
14
(D).
Cre
dit
lim
ited
to
use
tax
. AR
S § 4
2-5
15
9(2
).
Do
es n
ot
pro
vid
e
cred
it f
or
oth
er s
tate
s’
loca
l tax
es. A
RS
§ 4
2-
51
59
(2).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. A
AC
R1
5-5
-
15
03
(H).
Bad
deb
t d
edu
ctio
n
do
es n
ot
gen
eral
ly
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. A
AC
R1
5-
5-2
01
1(A
).
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
AA
C R
42
-11
18
(E).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
Co
nti
nge
nt
fee
au-
dit
ing
is p
roh
ibit
-
ed. S
on
e lo
cals
use
pri
vate
-co
ntr
act
aud
itin
g. A
RS
§ 4
2-
10
04
(B)(
3).
22
AR
KA
NSA
S
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
8%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
di-
rect
ly u
sed
in m
fg. A
CA
§§ 2
6-5
2-4
02
(a)
(1)(
A),
(a
)(3
)(A
).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
e-
rial
s b
eco
min
g a
“rec
ogn
izab
le in
tegr
al
par
t” a
nd
to
cer
tain
defi
ned
item
s co
n-
sum
ed o
r u
sed
in t
he
mfg
. pro
cess
. AC
A §
26
-52
-40
1(1
2)(
B).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. A
CA
§ 2
6-5
3-1
08
(b);
serv
ices
are
tax
ed a
t
con
sum
er le
vel.
AC
A §
26
-52
-31
5.
Cab
le e
qu
ip.:
tax
able
. AC
A §
26
-52
-30
1(3
)
(C).
Cab
le s
ervi
ces
are
tax
able
at
con
sum
-
er le
vel.
AC
A §
§ 2
6-5
2-3
15
(a),
-30
1(3
)
(c).
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le;
[gas
an
d e
lect
ric
dis
trib
uti
on
fac
iliti
es
are
tax
able
]. A
CA
§§ 2
6-5
2-4
02
, -1
08
.
Elec
tric
ity
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed, e
xce
pt
for
sale
s to
man
ufa
ctu
rers
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
AC
A
§ 2
6-2
1-1
07
; AC
r.7
9(E
)(2
);
selle
rs a
llow
ed a
t le
ast
120
day
s to
ob
tain
val
id c
erts
. on
aud
it. A
C r
.79
(E)(
4).
MT
C &
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
AC
r.7
9(F
)(1
)(a
).
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: 2%
of
tax
du
e (c
app
ed a
t $1
,000
per
mo
nth
). S
epar
ate
cap
s fo
r
loca
l co
llect
ion
s. A
CA
§ 2
6-
52
-50
3.
AR
has
a b
road
-bas
ed d
irec
t
pay
pro
visi
on
. AC
A §
26
-52
-
50
9(a
)(1
).
398
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
7,32
6).
Cen
tral
ad
min
. of
the
loca
l tax
es. L
oca
ls
hav
e sa
me
tax
bas
e.
AC
A §
§ 2
6-7
4-2
12
(a),
-40
7.
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e, b
ut
no
t
his
tori
cal t
ax r
ates
.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
AC
A §
26
-52
-
30
1(1
)(B
), (
3)(
C)(
iii)
.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
AC
r.2
5(A
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DFA
wri
tten
guid
ance
. AC
A §
26
-
21
-10
6, R
ule
GR
-75
.
Selle
rs w
ith
$20
0,00
0
in s
ales
per
mo
nth
mu
st m
ake
bim
on
thly
adva
nce
pay
men
ts
(am
ou
nti
ng
to 8
0 p
er-
cen
t o
f ta
x d
ue)
. AC
A §
26
-52
-51
2; A
C r
.77
(D).
Cre
dit
lim
ited
to
use
tax
. AC
A §
26
-53
-
13
1(a
)(1
). F
ull
cred
it
for
oth
er s
tate
s’ s
tate
and
loca
l tax
es.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. AC
A
§ 2
6-5
3-1
31
; Ru
le U
T-
12
.C; A
CA
§ 2
6-5
-10
1,
Art
. V.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
AC
A §
§ 2
6-5
2-3
09
,
26
-53
-11
1.
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
by
go-
ing
thro
ugh
sel
ler
to s
ecu
re a
ven
do
r
assi
gnm
ent.
AC
A
§ 2
6-1
8-5
07
, AC
r.81
.1.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
AC
A §
20
-
77
-90
1 e
t se
q.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. S
tate
Dep
t. of
Fin
. &
Adm
in. v
. Ted
der
,
932
S.W
.2d
755
(Ark
. 199
6).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g. A
CA
§2
6-
18
-30
3.
23
CA
LIF
OR
NIA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
9%.
Mfg
. eq
uip
. tax
able
w/r
edu
ced
3.3
125%
rate
, lim
ited
to
TP
P p
urc
has
ed f
or
use
pri
mar
ily in
an
y st
age
of
mfg
. CR
TC
§
63
77
.1(a
)(1
).
Part
ial m
fg. i
np
uts
ex
emp
tio
n li
mit
ed
to T
PP
pu
rch
ased
by
per
son
s fo
r th
e
pri
mar
y p
urp
ose
of
inco
rpo
rati
ng
it in
to
a m
anu
fact
ure
d a
rtic
le t
o b
e so
ld. 1
8 C
CR
§ 1
52
5(b
).
Wir
ed a
nd
wir
eles
s: t
axab
le. W
ired
serv
ices
are
no
t ta
xed
at
con
sum
er le
vel,
bu
t w
irel
ess
serv
ices
are
tax
ed. C
RTC
§§ 6
00
6, 4
21
00
. Ad
dit
ion
ally
, cer
tain
surc
har
ges
may
ap
ply
.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e n
ot
tax
ed a
t co
nsu
mer
leve
l. C
RTC
§ 6
00
6.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
w/l
imit
ed
exem
pti
on
fo
r el
ecti
on
lin
es, p
ole
s, t
ow
-
ers,
an
d c
on
du
its.
CR
TC
§ 6
01
6.5
. Ele
c-
tric
ity
and
gas
sal
es a
re s
ub
ject
to
ex
cise
tax
es a
nd
su
rch
arge
s. C
RTC
§ 6
35
3.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
18
CC
R §
16
67
(b)(
1);
no
gen
eral
ru
le a
llow
ing
selle
rs
at le
ast
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. 1
8 C
CR
§ 1
66
7(b
)(2
).
Lim
ited
use
of
MT
C e
xem
p-
tio
n c
erts
. fo
r re
sale
(o
ther
-
wis
e, it
may
no
t b
e ac
cep
ted
as a
n e
xem
pti
on
cer
t.).
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ith
TP
P s
ales
to
talin
g
at le
ast
$75M
per
qu
arte
r. 1
8
CC
R §
16
99
.5(a
).
365
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
102,
066)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. C
RTC
§§
72
02
(d),
72
70
. Lo
cal
tax
juri
sdic
tio
ns
hav
e
the
sam
e ta
x b
ase
as
the
stat
e. C
RTC
§§
72
02
(b),
(c)
.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bu
t d
oes
no
t h
ave
a
bo
un
dar
y d
atab
ase.
htt
ps:
//w
ww
.boe.
ca.g
ov/s
uta
x/a
r-
chiv
e_ra
tes.
htm
.
No
t a
full
SSU
TA
mem
ber
.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Pu
b.
10
9 (
6/1
2).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Pu
b. 1
09
(6
/12
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DT
FA g
uid
-
ance
. 18
CC
R §
17
05
.
Sel
lers
wit
h a
mo
nth
ly
esti
mat
ed t
ax o
f >
$17K
mu
st m
ake
adva
nce
pay
men
ts. C
RTC
§
64
52
.
Cre
dit
lim
ited
to
use
tax
. CR
TC
§ 6
406.
Fu
ll
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
.
CR
TC
§ 6
40
6.
No
acc
el. l
ease
pay
-
men
ts b
ut
con
tin
ues
tax
on
cer
tain
leas
e
pay
men
ts u
sin
g o
rigi
n
loca
tio
n. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. 1
8 C
CR
§
16
60
(c)(
8);
CR
TC
§
64
06
.
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. C
RTC
§§
6055
(a),
(b),
6203
.5(a
).
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller
if t
he
pu
rch
aser
pai
d u
se t
ax. C
RTC
§ 6
90
1.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
CG
C §
12
65
1(f
).
Ver
y lim
ited
, wri
t-
ten
au
th. r
equ
ired
to b
e p
art
of
clas
s
acti
on
su
it. C
ity
of
San
Jose
v. S
uper
.
Ct.
, 525
P.2
d 7
01
(Cal
. 197
4); C
RTC
§ 6
90
4(b
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
24
CO
LOR
AD
O
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o e
qu
ip.
use
d d
irec
tly
and
pre
do
min
antl
y in
mfg
.
of T
PP,
wit
h 1
+ y
r. u
sefu
l lif
e, c
ost
ing
$500
+. C
RS
§ 3
9-2
6-7
09
. So
me
loca
l ju
ris-
dic
tio
ns
do
no
t p
rovi
de
any
mfg
. mac
hin
-
ery
exem
pti
on
. Fo
rm D
R 1
00
2.
Mfg
. in
pu
ts e
xem
pti
on
gen
eral
ly li
mit
ed
to in
pu
ts e
nte
rin
g in
to t
he
pro
cess
ing
of
or
bec
om
ing
an in
gred
ien
t o
r co
mp
on
ent
par
t o
f th
e p
rod
uct
. C
RS
§ 3
9-2
6-1
02
(20
)
(a).
Wir
ed a
nd
wir
eles
s: g
ener
ally
, tax
able
, bu
t
limit
ed r
efu
nd
ava
ilab
le t
o b
road
ban
d
pro
vid
ers.
In
tras
tate
tel
eph
on
e se
rvic
es
are
tax
ed a
t co
nsu
mer
leve
l. C
RS
§§ 3
9-
26
-10
5(1
)(a
), -1
04
(1)(
c).
Cab
le: t
axab
le. C
able
ser
vice
s n
ot
tax
ed a
t
stat
e le
vel,
bu
t so
me
ho
me
rule
juri
sdic
-
tio
ns
tax
th
ese
serv
ices
. CR
S § 3
9-2
6-1
05
.
Elec
tric
an
d g
as e
qu
ip.:
gen
eral
ly t
axab
le.
CR
S § 3
9-2
6-7
24
. Ele
ctri
city
an
d g
as is
tax
ed f
or
com
mer
cial
use
rs. C
RS
§ 3
9-2
6-
10
5(1
)(a
)(II
).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
DR
05
63
(0
8/1
3)
Inst
ruct
ion
s;
no
ru
le a
llow
ing
selle
rs a
t
leas
t 12
0 d
ays
to o
bta
in
valid
cer
ts. o
n a
ud
it, b
ut
flex
ible
on
au
dit
.
MT
C a
nd
SSU
TA e
xem
p-
tio
n c
erts
. may
be
use
d f
or
tax
able
go
od
s, b
ut
no
t fo
r
resa
le o
f ta
xab
le s
ervi
ces.
CO
GIL
13
-00
6.
Selle
rs m
ust
cap
ture
ex
emp
-
tio
n a
cco
un
t n
um
ber
s. G
IL
12
-00
6.
Ven
do
r co
mp
.: 3.
33%
of
tax
du
e. C
RS
§ 3
9-2
6-1
05
(1)(
C)
(II)
(A).
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts m
akin
g $7
M+
wo
rth
of
tax
able
an
nu
al s
ales
. C
RS
§ 3
9-2
6-1
03
.5(1
).
322
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
15,6
19).
All
loca
l tax
es a
re n
ot
cen
tral
ly a
dm
in.
Som
e h
om
e-ru
le lo
cal-
itie
s d
efin
e th
eir
ow
n
tax
bas
e an
d s
epar
ate
app
eals
. CR
S §§ 2
9-2
-
10
5(1
)(d)(
I).
Web
site
has
cu
rren
t
tax
rat
es, b
ut
no
t
his
tori
cal t
ax r
ates
or
a b
ou
nd
ary
dat
abas
e.
htt
ps:
//w
ww
.colo
ra-
do.
gov/
pa
cific/
tax/
sale
s-ta
x-ra
tes.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
dig
ital
pro
du
cts.
CO
GIL
-13
-02
0 (
Au
g.
20
, 20
13
).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
CR
S §§ 3
9-2
6-1
02
(15
)
(c)(
I), -
(c)(
II)(
A).
Lim
ited
tax
liab
ility
relie
f fo
r se
llers
an
d
pu
rch
aser
s re
lyin
g o
n
DO
R g
uid
ance
. CR
S §
39
-26
-10
5.3
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. CC
R §
39
-26
-
71
3.2
(F).
Fu
ll cr
edit
for
oth
er s
tate
s’ s
tate
and
loca
l tax
es. C
CR
§
39-2
6-71
3.
No
acc
el. l
ease
pay
-
men
ts b
ut
con
tin
ues
tax
on
cer
tain
leas
e
pay
men
ts u
sin
g o
rigi
n
loca
tio
n. U
ncl
ear
if
cred
it p
rovi
ded
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
CR
S § 3
9-2
6-1
02
(5);
CC
R §
§ 3
9-2
6-1
02
.5(a
)
(4),
-11
1.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. h
ttps:
//
ww
w.c
olo
rado.
gov/
pa
cific/
site
s/
def
au
lt/fi
les/
Sale
s90
.pdf.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es. C
RS
§ 2
6-1
-
12
7 e
t se
q.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. C
RS
§
39
-26
-70
3(2
.5)(
c).
No
co
nti
nge
nt
fee
aud
itin
g.
Som
e lo
cals
use
pri
vate
-co
ntr
act
aud
itin
g.
Co
lora
do
selle
rs
lack
ing
nex
us
in
a lo
calit
y
can
hav
e
dis
pu
tes
wit
h c
us-
tom
ers
wh
en
colle
ct-
ing
tax
w/o
ut
hav
ing
a
ph
ysic
al
pre
sen
ce
in t
he
loca
lity.
25
CO
NN
EC
TIC
UT
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
9%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o m
a-
chin
ery
use
d d
irec
tly
in m
fg. C
GS
§ 1
2-
41
2(3
4);
50%
ex
emp
tio
n f
or
M&
E u
sed
pri
mar
ily in
mfg
., p
roce
ssin
g, o
r fa
bri
cat-
ing.
CG
S § 1
2-4
12
i.
Mfg
. in
pu
ts f
ull
exem
pti
on
lim
ited
to
ma-
teri
als,
to
ols
, an
d f
uel
s u
sed
dir
ectl
y in
an
ind
ust
rial
pla
nt
in t
he
actu
al f
abri
cati
on
of
a fi
nis
hed
pro
du
ct. C
GS
§ 1
2-4
12
(18
).
50%
ex
emp
tio
n f
or
mat
eria
ls, t
oo
ls, a
nd
fuel
s o
ther
wis
e co
nsu
med
in m
fg. C
GS
§
12
-41
2i.
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
. CG
S § 1
2-4
12
(11
2).
Ser
vice
s ar
e
tax
ed a
t co
nsu
mer
leve
l. C
GS
§ 1
2-4
07
(a)
(2)(
K).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le. C
GS
§ 1
2-
41
2(1
12
). S
ervi
ces
are
tax
ed a
t co
nsu
mer
leve
l. C
GS
§§ 1
2-4
07
(a)(
2)(
A),
(a
)(2
)(L)
.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
CG
S § 1
2-4
12
. Ele
ctri
city
an
d g
as is
tax
ed
for
com
mer
cial
use
rs. C
GS
§ 1
2-4
12
(3).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
CG
S § 1
2-4
10
(2);
no
ru
le
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
.
on
au
dit
.
Lim
ited
use
of
MT
C e
xem
p-
tio
n c
erts
.
Selle
rs m
ust
cap
ture
reg
-
istr
atio
n n
um
ber
s, b
ut
no
veri
fica
tio
n r
equ
irem
ent.
No
ven
do
r co
mp
.
Dir
ect
pay
allo
wed
wh
en
ther
e ar
e “s
uffi
cien
t vo
lum
e”
of
pu
rch
ases
to
just
ify
the
exp
ense
of
aud
its
by
the
com
mis
sio
ner
. CG
S § 1
2-
40
9a
.
No
loca
l sal
es t
ax ju
ris-
dic
tio
ns.
Web
site
has
cu
rren
t
tax
rat
e an
d n
o t
ax
rate
ch
ange
w/p
ast
5
year
s. h
ttp:/
/ask
drs
.
ct.g
ov/S
crip
ts/d
rsri
-
ghtn
ow.c
fg/p
hp.e
xe/
endu
ser/
std_a
dp.
ph
p?p
_fa
qid
=3
98
.
No
t a
full
SSU
TA
mem
ber
.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
dig
ital
pro
du
cts
(“co
mp
ute
r an
d d
ata
pro
cess
ing
serv
ices
”).
CG
S § 1
2-4
08
(1)(
D)
(i).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Poli
cy S
tate
men
t
20
04
(2),
Sa
les
an
d
Use
Ta
xes
on
In
ter-
net
Acc
ess
Serv
ices
an
d O
n-L
ine
Sale
s of
Goods
an
d S
ervi
ces;
FAQ
75
0; R
uli
ng
No.
20
15
-5.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. C
GS
§ 1
2-4
30
(5).
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. C
GS
§ 1
2-4
30
(5).
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. Poli
cy
Sta
tem
ent
96
(10
).
Bad
deb
t d
edu
ctio
n
do
es n
ot
gen
eral
ly
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. C
GS
§
12
-40
8(2
)(B
); C
AR
§
12
-40
8-1
(d).
Pu
rch
aser
s ca
n
ob
tain
sel
ler’
s
wri
tten
ass
ign
-
men
t o
f re
fun
d
clai
m t
o o
bta
in
a re
fun
d f
rom
the
stat
e. P
oli
cy
Sta
tem
ent
98
(5),
Sale
s a
nd U
se T
ax
Ref
un
d P
oli
cy.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es. C
GS
§ 5
3-
44
0 e
t se
q.
Som
e cl
ass
acti
on
suit
s al
low
ed. S
ee
Ferr
ie v
. Dir
ecTV,
LLC
, 3:1
5-C
V-4
09
(JC
H),
20
16
WL
18
34
74
(D
. Con
n.
Jan
. 12
, 20
16
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
DE
LAW
AR
E –
No
t A
pp
lica
ble
26
DIS
TR
ICT
OF
CO
LUM
BIA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. tax
able
. DC
C §
47
-20
02
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
inp
uts
use
d o
r in
corp
ora
ted
into
oth
er T
PP
fo
r
sale
by
mfg
. DC
C §
47
-20
01
(n)(
1).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. D
CC
§§ 4
7-2
00
5(5
)(B
), (
C).
Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
DC
C §
§ 4
7-2
00
1(n
)
(1)(
G),
-20
02
, -3
90
2.
Cab
le e
qu
ip.:
exem
pt.
DC
C §
47
-20
05
(5)
(D).
Ser
vice
s ar
e ta
xed
at
con
sum
er le
vel.
DC
C §
47
-20
05
(26
).
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
DC
C §
§
47
-25
01
, -2
00
5(5
)(A
). So
me
serv
ices
are
tax
ed a
t th
e co
nsu
mer
leve
l. D
CC
§§ 4
7-
20
01
(n)(
1)(
D),
-20
05
(11
), -2
00
5(2
4).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
DC
C
§ 4
7-2
01
0; n
o r
ule
allo
win
g
selle
rs a
t le
ast
120
day
s to
ob
tain
val
id c
erts
. on
au
dit
.
No
lon
ger
allo
ws
use
of
MT
C e
xem
pti
on
cer
ts.
Selle
rs m
ust
cap
ture
reg
is-
trat
ion
nu
mb
ers.
No
ven
do
r co
mp
.
No
dir
ect
pay
per
mit
s
allo
wed
.
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
dig
ital
pro
du
cts
(“b
ased
on
info
ser
-
vice
s an
d d
ata
pro
cess
-
ing
serv
ices
”). D
CC
§§
47
-20
01
(s),
-22
01
(n)
(1)(
N),
-22
01
(j).
Tax
imp
ose
d o
n a
per
-
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e (d
ata
pro
cess
-
ing
and
info
ser
vice
s).
DC
C §
47
-20
01
(n)(
1)
(N)(
i).
No
tax
liab
ility
rel
ief
for
rely
ing
on
OT
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. D
CC
§ 4
7-2
20
6.
Full
cred
it f
or
oth
-
er s
tate
s’ s
tate
an
d
loca
l tax
es. D
CC
§ 4
7-
22
06
(3).
No
acc
el. l
ease
pay
-
men
ts. U
nkn
ow
n if
DC
cred
its
agai
nst
tax
pai
d
to a
no
ther
sta
te o
n
acce
l. le
ase
pay
men
ts.
Bad
deb
t d
edu
ctio
n
do
es n
ot
gen
eral
ly
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. 9
DC
MR
§
41
0.4
.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
DC
C §
2-3
81
.02
(d).
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
SSN
s an
d
ho
me
add
ress
-
es a
re
req
uir
ed
on
reg
-
istr
atio
n
form
s
and
on
retu
rns.
htt
ps:
//
ww
w.
taxp
ay-
erse
r-
vice
cen
-
ter.c
om
/
fr5
00
/
Loa
d-
Step
1.d
o.
27
FLO
RID
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n e
xem
pts
all
M&
E
pu
rch
ases
wit
h a
3-y
ear
life
or
lon
ger
that
are
det
erm
ined
to
be
inte
gral
to
th
e m
fg.
pro
cess
. FS
§ 2
12
.08
(5).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
raw
ma-
teri
als
that
bec
om
e a
com
po
nen
t p
art
of
a
pro
du
ct p
rod
uce
d f
or
sale
or
for
pu
rpo
ses
of
R&
D, p
rod
uct
pac
kagi
ng,
var
iou
s b
oile
r
fuel
s, a
nd
ele
ctri
city
use
d b
y sp
ecifi
c
ind
ust
ries
. FS
§§ 2
12
.05
2, 2
12
.08
. Do
es
no
t in
clu
de
exp
end
able
mat
eria
ls t
hat
do
no
t b
eco
me
a co
mp
on
ent
of
the
fin
ish
ed
pro
du
ct, m
ost
fu
els,
an
d o
ther
en
ergy
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. F
S §
21
2.0
5(1
)(f)
. Ser
vice
s ar
e ta
xed
at
con
-
sum
er le
vel.
FS §
20
2.1
2(1
)(a
).
Cab
le e
qu
ip.:
tax
able
. FS
§ 2
12
.05
(1)(
f).
Serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. FS
§ 2
02
.11
.
Elec
tric
eq
uip
. is
exem
pt;
gas
equ
ip. i
s ta
x-
able
. FS
§§ 2
12
.08
(5)(
c), (
7)(
hh
). E
lec-
tric
an
d g
as s
ervi
ces
sub
ject
to
sal
es t
ax
or
GR
T e
xce
pt
for
mo
st m
anu
fact
ure
rs.
FS §
§ 2
12
.02
, .0
8(5
); FA
C r
.12
A-1
.05
3,
1.0
59
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
fo
r
resa
le. F
AC
r.1
2A
-1.0
39
(5).
No
ru
le a
llow
ing
selle
rs
at le
ast
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it, b
ut
selle
rs m
ay p
rovi
de
cert
s.
any
tim
e d
uri
ng
an a
ud
it. F
S
§§ 2
12
.07
(1)(
b).
MT
C e
xem
pti
on
cer
ts.
gen
eral
ly n
ot
allo
wed
. FA
C
r.12
A-1
.03
9(8
).
Selle
rs m
ust
cap
ture
/ver
ify
exem
pti
on
acc
ou
nt
nu
m-
ber
s. F
AC
r.1
2A
-1.0
38
(h).
Ven
do
r co
mp
.: 2.
5% o
f ta
x
du
e fo
r se
llers
wh
o r
epo
rt
via
elec
tro
nic
mea
ns
on
ly
(cap
ped
at
$1,2
00 p
er
rep
ort
ing
per
iod
). FS
§
21
2.1
2(1
)(a
).
Dir
ect
pay
lim
ited
to
air
carr
iers
, rai
lro
ads,
mo
tor
car-
rier
s, v
esse
ls, a
nd
dea
lers
of
TP
P w
ho
mee
t ce
rtai
n r
eqs.
FAC
r.1
2A
-1.0
91
1(2
)(b),
FS
§ 2
12
.18
3.
62 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
303,
247)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. F
S §
21
2.0
54
(4)(
a).
Loca
ls
hav
e sa
me
tax
bas
e
as t
he
stat
e. F
S §
21
2.0
54
.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bu
t d
oes
no
t h
ave
a
bo
un
dar
y d
atab
ase.
htt
p:/
/dor.m
yflori
da
.
com
/dor/
taxe
s/ta
x_
inte
rest
_ra
tes.
htm
l.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n c
er-
tain
dig
ital
pro
du
cts
via
com
mu
nic
atio
ns
serv
ices
tax
. Flo
rida
Tech
nic
al A
ssis
tan
ce
Advi
sem
ent
14
A1
9-
00
5 (
Dec
. 18
, 20
14
);
Flori
da
Tec
hn
ica
l
Ass
ista
nce
Advi
sem
ent
14
A1
9-0
06
(D
ec. 1
9,
20
14
).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Tech
nic
al A
ssis
tan
ce
Advi
sem
ent
14
A-0
01
(1/1
4).
Lim
ited
tax
liab
ility
relie
f fo
r se
llers
an
d
pu
rch
aser
s re
lyin
g o
n
DO
R g
uid
ance
. FS
§§
21
3.2
2(1
), 2
13
.21
(3)
(B).
Selle
rs m
ust
mak
e
adva
nce
pay
men
ts. F
S §
21
2.1
1. P
aym
ent
is d
ue
wit
h t
he
retu
rn f
or
the
pri
or
mo
nth
.
Cre
dit
no
t lim
ited
to
use
tax
. FS
§ 2
12
.06
(7).
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. F
lori
da
Ta
x In
-
form
ati
on
Pu
bli
cati
on
No.
00
A0
1-3
6.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
(w
ith
con
dit
ion
s). F
AC
r.12
A-1
.00
7(1
3).
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. F
S §§
21
2.1
7(3
), (
4).
No
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s to
ob
-
tain
ref
un
ds
fro
m
the
stat
e w
/ou
t
goin
g th
rou
gh t
he
selle
r. C
laim
ants
mu
st h
ave
mad
e
pay
men
t d
irec
tly
to D
OR
to
rec
eive
refu
nd
. DR
-26
S
(1/0
8).
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly
to t
axes
. FS
§
21
3.3
0(3
).
Cla
ss a
ctio
n s
uit
s
allo
wed
. Sc
hoja
n
v. P
apa
Joh
n’s
Inte
rn. I
nc.
, 34
F. Su
pp
. 3d
120
6
(M.D
. Fla
. 201
4).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
28
GE
OR
GIA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
4%.
Mfg
. eq
uip
. ex
emp
tio
n in
clu
des
M&
E
nec
essa
ry a
nd
inte
gral
to
th
e m
fg. o
f TP
P,
ind
ust
rial
mat
eria
ls, o
r p
acki
ng
sup
plie
s.
GC
A §
48
-8-3
.2(b
). T
his
ex
emp
tio
n
cove
rs t
he
enti
re f
acili
ty (
inte
grat
ed p
lan
t
theo
ry).
Mfg
. in
pu
ts e
xem
pti
on
incl
ud
es c
on
sum
-
able
su
pp
lies,
ind
ust
rial
mat
eria
ls w
hic
h
bec
om
e p
art
of
the
com
po
nen
t p
rod
uct
,
sup
plie
s fo
r p
acki
ng
TP
P, an
d e
ner
gy n
ec-
essa
ry a
nd
inte
gral
to
mfg
. TP
P. G
CA
§§
48
-8-3
.2(a
)(3
), (
a)(
5),
(b),
(c)
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
GC
A §
48
-8-2
(31
)(A
); G
CR
&R
56
0-1
2-2
-.24
(2)
(a)(
1).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le (
on
ly
dig
ital
bro
adca
st e
qu
ip. e
xem
pt)
. GC
R&
R
56
0-1
2-2
-.17
(3),
(4
)(a
). S
ervi
ces
are
no
t
tax
ed a
t co
nsu
mer
leve
l. G
CR
&R
56
0-1
2-
2-.1
7(5
)(a
).
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
GC
R&
R 5
60
-12
-2-.6
2; T
PP
use
d f
or
tran
s-
mis
sio
n a
nd
dis
trib
uti
on
is n
ot
exem
pt.
Geo
rgia
Pow
er C
o. v
. Ma
cGin
nit
ie, N
o.
2015
-1 (
Ga.
Tax
Tri
b. J
an. 5
, 201
5). E
lect
ric-
ity
and
gas
is t
axed
at
the
con
sum
er le
vel.
GC
A §
48-8
-2(3
1)(
A);
GC
R&
R 5
60-1
2-2
-.32
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
GC
A
§ 4
8-8
-38
; By
rulin
g, a
llow
s
selle
rs a
t le
ast
120
day
s to
ob
tain
val
id c
erts
. on
au
dit
.
L.R
. SU
T -2
01
3-0
6-1
3-0
3.
SSU
TA/M
TC
ex
emp
tio
n
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s p
urs
uan
t
to a
sta
tute
, bu
t D
OR
has
sugg
este
d t
hat
th
e d
efin
itio
n
of “
goo
d-fa
ith
” in
GC
A §
48-
8-38
(b)
req
uir
es a
sel
ler
to
veri
fy e
xem
pti
on
nu
mb
ers.
Ven
do
r co
mp
.: 3%
of
tax
du
e o
n fi
rst
$3,0
00 o
f to
tal
sale
s an
d u
se t
axes
rep
ort
-
ed, a
nd
0.5
% o
f p
ort
ion
exce
edin
g $3
,000
. GC
A §
48
-8-5
0(b
).
Dir
ect
pay
lim
ited
to
cer
tain
mfg
. mak
ing
at le
ast
$2
mill
ion
in T
PP
pu
rch
ases
per
year
. GC
R&
R 5
60
-12
-1-.1
6.
207
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
46,8
00).
Cen
tral
ad
min
. of
the
loca
l tax
es. G
CA
§
48
-8-1
10
.1(c
). T
he
tax
bas
e fo
r lo
cals
can
dif
fers
fro
m t
he
stat
e
tax
bas
e.
Web
site
incl
ud
es c
ur-
ren
t an
d h
isto
rica
l tax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
ps:
//dor.g
eorg
ia.
gov/
docu
men
ts/s
ale
s-
tax-
rate
-ch
art
.
Full
SSU
TA m
emb
er,
bu
t o
ut
of
com
plia
nce
.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
L.R
.
SUT 2
01
4-0
5 (
6/1
4).
No
tax
imp
ose
d
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. I
d.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. GC
A §
§ 4
8-8
-71
,
-77
.1.
Selle
rs o
win
g $6
0,00
0
or
mo
re in
th
e p
rio
r
year
, ex
clu
din
g lo
cal
sale
s ta
xes
, mu
st m
ake
adva
nce
pay
men
ts o
f
50%
eac
h m
on
th b
y
the
20th
day
of
per
iod
.
GC
A §
48
-8-4
9(b
)(2
).
Cre
dit
no
t lim
ited
to
use
tax
. GC
A §
48
-8-4
2.
Ho
wev
er,
tax
cre
dit
limit
ed s
tate
to
sta
te
and
loca
l to
loca
l.
GC
R&
R 5
60
-12
-1-
.32
(5).
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. GC
A §
48
-8-4
2; G
CR
&R
56
0-
12
-1-.3
2.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
GC
A §
§ 4
8-8
-45
(c),
(d).
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
the
stat
e w
/ou
t
goin
g th
rou
gh t
he
selle
r. Fi
le form
s
ST-1
2 (
7/1
6)
an
d
ST-1
2B
(1
/12
).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
GC
A §
23
-
3-1
21
(e).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Geo
rgia
Pow
er
Co.
v. C
azi
er, 7
40
S.E.
2d 4
58 (
Ga.
Ap
p. 2
013)
; GC
A §
48
-2-3
5(c
)(1
)(D
).
Rec
entl
y en
act-
ed le
gisl
atio
n
(201
8 G
A H
B
811)
wo
uld
allo
w
con
tin
gen
t fe
e au
-
dit
ing.
No
cu
rren
t
pri
vate
-co
ntr
act
aud
itin
g. G
CA
§
48
-2-6
(e).
DO
R is
adm
inis
-
trat
ivel
y
den
yin
g
dir
ect
pay
ho
lder
s
inte
r-
est
on
refu
nd
s.
29
HA
WA
II
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
6%.
No
mfg
. eq
uip
. ex
emp
tio
n. H
RS
§ 2
37
-
13
(2)(
A).
A w
ho
lesa
le 0
.5%
tax
imp
ose
d o
n m
ate-
rial
s so
ld t
o a
lice
nse
d m
anu
fact
ure
r an
d
inco
rpo
rate
d in
to fi
nis
hed
TP
P f
or
sale
.
HR
S § 2
37
-4(a
)(2
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. W
ired
and
wir
eles
s se
rvic
es a
re t
axed
at
the
con
sum
er le
vel.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
HR
S § 2
37
-13
(6).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. Sal
es o
f
elec
tric
ity
and
gas
are
tax
ed, p
ub
lic s
er-
vice
co
mp
any
tax
. HR
S § 2
39
-5(a
).
“Go
od
fai
th”
req
. no
t im
-
po
sed
on
ex
emp
tio
n c
erts
.
bu
t im
po
sed
on
res
ale
cert
s.
HA
R §
18
-23
7-1
3-0
2(d
)
(4);
no
ru
le a
llow
ing
selle
rs
at le
ast
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it.
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s. H
AR
18-
237-
30(g
).
No
ven
do
r co
mp
.
No
bro
ad-b
ased
dir
ect
pay
pro
visi
on
.
4 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
340,
075)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. H
RS
§ 4
6-
16
.8(a
). A
ll th
e lo
cal
hav
e th
e sa
me
tax
bas
e as
th
e st
ate.
Id.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e n
ot
his
tori
cal t
ax
rate
s o
r a
bo
un
dar
y
dat
abas
e. h
ttp:/
/ta
x.
haw
aii
.gov
/gen
info
/
get/
.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
as T
PP.
HR
S §
23
7-1
3(2
).
Tax
imp
ose
d o
n a
per
-
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e vi
a ge
ner
al
exci
se t
ax. H
RS
§ 2
37
-
13
(9).
Lim
ited
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
T
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. H
RS
§§ 2
37
–22
,
23
8–3
(i).
Fu
ll cr
edit
for
oth
er s
tate
s’ s
tate
and
loca
l tax
es. H
RS
§§
23
7–2
2, 2
38
–3(i
).
No
acc
el. l
ease
pay
-
men
ts.
Cre
dit
s o
ther
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
.
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. H
RS
§§
23
7-3
(b),
24
1-4
(b)(
3).
No
wri
tten
pro
-
cess
allo
win
g p
ur-
chas
ers
to o
bta
in
refu
nd
s fr
om
th
e
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
ax
clai
ms.
Cla
ss a
ctio
n s
uit
s
allo
wed
.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
HR
S § 2
31
-13
(b)
(3).
Offi
cers
’
SSN
s an
d
ho
me
add
ress
-
es a
re
req
uir
ed
on
reg
-
istr
atio
n
form
,
and
the
last
4 SS
N
dig
its
are
req
uir
ed
on
retu
rns.
Form
BB
-1
(rev
.
20
17
),
Form
G-4
5
(rev
.
20
16
).
30
IDA
HO
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
2%.
Ex
emp
ts T
PP
pri
mar
ily
and
dir
ectl
y
use
d o
r co
nsu
med
in
or
du
rin
g a
mfg
.,
pro
cess
ing,
min
ing,
or
fab
rica
tin
g
op
erat
ion
. IC
§ 6
3-3
62
2D
(a),
(b);
IDA
PA
35
.01
.02
.07
9.0
3.
Mfg
. in
pu
ts li
mit
ed t
o b
usi
nes
s se
gmen
t
pri
mar
ily e
nga
ged
in p
rod
uct
ion
of T
PP
that
en
ters
in
to a
nd
bec
om
es a
n i
ngr
e-
die
nt
or
com
po
nen
t p
art
of T
PP
man
u-
fact
ure
d, p
roce
ssed
, min
ed, p
rod
uce
d
or
fab
rica
ted
fo
r sa
le. I
C §
63
-36
22
D(a
),
(b)
; ID
APA
35
.01
.02
.07
9.0
3.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. ID
APA
35
.01
.02
.03
1.0
4. S
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
IDA
PA 3
5.0
1.0
2.0
31
.03
.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e n
ot
tax
ed a
t co
nsu
mer
leve
l. IC
§ 6
3-3
61
2(2
);
IDA
PA 3
5.0
1.0
2.0
11
.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. ID
APA
35
.01
.02
.07
9.2
0(c
). S
ervi
ces
no
t ta
xab
le.
IC §
63
-36
12
(1);
IDA
PA 3
5.0
1.0
2.0
11
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
IC
§
63
-36
22
; no
ru
le a
llow
ing
selle
rs a
t le
ast
120
day
s to
ob
tain
val
id c
erts
. on
au
dit
,
bu
t fl
exib
le o
n a
ud
it. I
DA
PA
35
.01
.02
.12
8(0
9).
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
ID r
etai
lers
pu
rch
asin
g fo
r
resa
le m
ust
pro
vid
e an
ID
per
mit
nu
mb
er.
No
ven
do
r co
mp
.
ID h
as a
bro
ad-b
ased
dir
ect
pay
pro
visi
on
. ID
APA
35
.01
.02
.11
2.0
1.
13 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
120,
583)
.
Cen
tral
ad
min
. of
the
loca
l tax
es, e
xce
pt
a
tou
rism
tax
. Lo
cals
hav
e th
e sa
me
tax
bas
e as
th
e st
ate
w/
limit
ed e
xce
pti
on
s.
htt
ps:
//ta
x.id
ah
o.
gov/
i-1
11
7.c
fm.
Web
site
has
cu
r-
ren
t ta
x r
ates
an
d a
bo
un
dar
y d
atab
ase,
bu
t it
do
es n
ot
hav
e
his
tori
cal l
oca
l sal
es
tax
rat
es. h
ttps:
//ta
x.
ida
ho.
gov/
i-1
02
3.
cfm
#su
b3
.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
bec
ause
it
is c
on
sid
ered
TP
P, w
/
exce
pti
on
s. I
C §
63
-
36
16
(b).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
rew
ritt
en
com
pu
ter
soft
war
e. I
C
§ 6
3-3
61
6(b
).
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
IST
C
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. IC
§ 6
3-3
62
1(j
).
Full
cred
it f
or
oth
er
stat
es’ l
oca
l an
d s
ales
tax
es. h
ttps:
//ta
x.id
a-
ho.
gov/
i-1
01
8.c
fm.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. Sta
te
an
d L
oca
l Advi
sory
Cou
nci
l Su
rvey
: Cre
dit
for
Tax
Paid
Lea
ses
(4/1
1).
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. I
DA
PA
35
.01
.02
.06
3(0
2).
No
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s to
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. ID
APA
35
.01
.02
.11
7(0
2).
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es.
Cla
ss a
ctio
n s
uit
s
allo
wed
. See
Wa
re
v. I
da
ho S
tate
Ta
x
Com
m’n
, 98
Idah
o
477,
567
P2d
423
,
(197
7).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
31
ILLI
NO
IS
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
7%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
dir
ectl
y u
sed
pri
mar
ily in
mfg
. 35
ILC
S
§§ 1
20
/2-5
(14
), 1
05
/3-5
(18
), 1
10
/2,
11
5/2
(e).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
inp
uts
that
go
into
an
d f
orm
a p
art
of T
PP
so
ld
at r
etai
l. 3
5 I
LCS
§ 1
20
/1; 8
6 I
AC
§
13
0.2
10
(b),
13
0.2
15
(b).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
35
ILC
S
§ 6
30
/3.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e n
ot
tax
ed a
t co
nsu
mer
leve
l. Il
l. D
ept.
of
Rev
.
Gen
era
l In
form
ati
on
Let
ter
No.
ST 0
4-
01
93
-GIL
(1
1/0
1/2
00
4).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. 35
ILC
S
§ 1
20
/2-4
5. S
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
86
IA
C §
13
0.1
01
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
fo
r
serv
ices
, no
t TP
P. 8
6 I
AC
§
13
0.1
40
5. S
elle
rs o
nly
hav
e
60 d
ays
to o
bta
in v
alid
cer
ts.
on
au
dit
.
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d. H
ow
ever
, res
ale
cert
s. m
ust
co
nta
in p
urc
has
-
er’s
IL
regi
stra
tio
n n
um
ber
.
Selle
rs m
ust
cap
ture
/ver
ify
exem
pti
on
acc
ou
nt
nu
m-
ber
s. R
ock
Isl
an
d T
oba
cco &
Spec
ialt
y C
o. v
. Illin
ois
Dep
’t
of
Rev
enu
e, 4
09 N
.E.2
d 1
36
(3rd
Dis
t. 19
80).
Ven
do
r co
mp
.: 1.
75%
per
cale
nd
ar y
ear. 3
5 I
LCS
§§ 1
05
/9, 1
10
/9, 1
15
/9,
12
0/3
.
IL h
as a
bro
ad-b
ased
dir
ect
pay
pro
visi
on
, bu
t th
e ap
pli-
cati
on
pro
cess
is d
etai
led
.
86
IA
C §
13
0.2
52
0.
1,63
9 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
7,82
8).
Cen
tral
ad
min
. of
loca
l
tax
es. E
xcl
ud
ing
Co
ok
Co
un
ty, l
oca
ls g
ener
-
ally
use
th
e st
ate’
s ta
x
bas
e. C
oo
k C
ou
nty
also
has
on
ero
us
leas
e
tran
sact
ion
tax
.
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e b
ut
do
es
no
t h
ave
his
tori
cal
tax
rat
es. h
ttp:/
/ww
w.
reve
nu
e.st
ate
.il.u
s/
Pu
bli
cati
on
s/Sa
les.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
ST 1
5-
01
04
(G
IL)
(10
/15
).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. S
T
16
-00
33
(G
IL).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
err
on
eou
s
DO
R g
uid
ance
. 20
ILC
S
§ 2
52
0.
Selle
rs o
win
g >
$20,
000
per
mo
nth
mu
st m
ake
adva
nce
pay
men
ts f
ou
r ti
mes
per
mo
nth
. 35
ILC
S §
12
0/3
.
Cre
dit
lim
ited
to
use
tax
. 35
ILC
S §
10
5/3
-55
(d).
Do
es
no
t p
rovi
de
a fu
ll
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
.
Ph
ilco
Corp
. v. D
ep’t o
f
Rev
enu
e, 4
0 Il
l.2d
312
(196
8).
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Un
clea
r if
IL
cred
its
oth
er s
tate
s’ t
ax o
n
acce
l. le
ase
pay
men
ts.
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. 8
6 I
AC
§
13
0.1
96
0(d
); 3
5 I
LCS
§§ 1
20
/6d(a
), (
b).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e
w/o
ut
goin
g
thro
ugh
th
e se
ll-
er. S
T 1
3-0
02
9
(GIL
) (6
/13
).
Fals
e cl
aim
s ac
t
allo
ws
sale
s ta
x
clai
ms.
74
0 I
LCS
§ 1
75
/3(c
).
Cla
ss a
ctio
ns
suit
s al
low
ed.
Won
g v. W
hole
Foods
Mkt.
Gro
up, I
nc.
, 15
C 8
48, 2
015
WL
1085
2508
(N
.D.
Ill J
un
e 15
, 201
5)
(set
tled
201
5).
DO
R d
oes
no
t en
gage
in
pri
vate
-co
ntr
act
aud
itin
g o
r
con
tin
gen
t fe
e
aud
itin
g.
Loca
l ju
ris-
dic
tio
ns
is-
sue
w/s
ales
v. u
se t
ax
litig
atio
n
on
dis
trib
u-
tio
n o
f th
e
tax
un
fair
ly
forc
ing
som
e
selle
rs in
to
litig
atio
n,
see
Cit
y of
Ch
ica
go
an
d v
illa
ge
of
Skokie
v. C
ity
of
Ka
nka
-
kee,
et
al.
(cas
e 11
CH
294
75
(10/
2015
)).
32
IND
IAN
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
2%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
dir
ectl
y u
sed
in m
fg. I
C §
6-2
.5-5
-3(b
).
Mfg
. in
pu
ts e
xem
pti
on
incl
ud
es T
PP
inco
rpo
rate
d a
s a
mat
eria
l par
t, as
wel
l as
TP
P c
on
sum
ed in
th
e d
irec
t p
rod
uct
ion
of
oth
er T
PP.
IC
§§ 6
-2.5
-5-6
, -5
.1; 4
5 I
AC
2.2
-5-1
4(d
); 2
.2-5
-12
(a).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t;
serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. IC
§
6-2
.5-4
-6, 6
-2.5
-5-1
3.
Cab
le e
qu
ip.:
exem
pt.
In
form
ati
on
Bu
llet
in #
17
(9
/09
). Se
rvic
es a
re t
axed
at c
on
sum
er le
vel.
IC §
6-2
.5-4
-11
; 45
IA
C
2.2
-4-3
0.
Elec
tric
eq
uip
.: ta
xab
le. I
C §
6-2
.5-5
-3(c
).
Gas
eq
uip
.: ex
emp
t. IC
§ 6
-2.5
-5-3
(b);
Elec
tric
ity
and
gas
so
ld t
o c
on
sum
ers
is
tax
ed. I
C §
§ 6
-2.5
-1-2
7, 6
-2.5
-4-5
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
IC
§
6-2
.5-8
-8(a
); s
elle
rs a
llow
ed
120
day
s to
ob
tain
val
id
cert
s. o
n a
ud
it. IC
§ 6
-2.5
-
8-8
(e).
SSU
TA e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: 0.
73%
fo
r
selle
rs <
$60
,000
in t
ax
liab
ility
in p
rio
r ye
ar, 0
.53%
for
selle
rs w
ith
tax
liab
il-
ity
bet
wee
n $
60,0
00 t
o
$600
,000
, an
d 0
.26%
fo
r
selle
rs >
$60
0,00
0. I
C §
6-2
.5-6
-10
(b).
Dir
ect
pay
allo
wed
fo
r m
fg.,
reta
ilin
g, a
nd
wh
ole
salin
g. I
C
§ 6
-2.5
-8-9
; 45
IA
C 2
.2-8
-15
.
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s. h
ttp:/
/ww
w.
in.g
ov/d
or/
41
47
.htm
.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
un
der
th
e
cate
gori
zati
on
of
“ret
ail t
ran
sact
ion
s.” I
C
§§ 6
-2.5
-2-1
, 6-2
.5-4
-
16
.4(b
).
S.B
. 257
, sig
ned
3/23
/18,
cla
rifi
ed
that
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e is
no
t ta
xab
le. S
ale
s Ta
x
Bu
llet
in 8
(1
2/1
6).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. IC
§ 6
-2.5
-11
-11
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. IC
§ 6
-2.5
-3-5
. Do
es
no
t p
rovi
de
full
cred
it
for
oth
er s
tate
s’ lo
cal
tax
es.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
Hom
e D
epot
U.S
.A.,
Inc.
v. I
ndia
na
Dep
’t o
f
Rev
., C
ase
No
. 49T
10-
0703
-TA
-11
(Ju
ly 2
8,
2008
); IC
§ 6
-2.5
-6-9
.
Pu
rch
aser
s m
ay
ob
tain
ref
un
ds
fro
m t
he
stat
e
w/o
ut
goin
g
thro
ugh
th
e
selle
r. IC
§ 6
-2.5
-
6-1
3.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es. I
C §
5-1
1-
5.5
-2(a
)(1
).
Cla
ss a
ctio
n
suit
s n
ot
allo
wed
un
less
a p
erso
n
has
pre
vio
usl
y
file
d a
val
id
refu
nd
cla
im.
IC §
§ 6
-8.1
-9-7
,
6-8
.1-9
-1(a
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
Gen
eral
ly,
SSN
an
d
ho
me
add
ress
es
are
re-
qu
ired
fo
r
regi
stra
-
tio
ns
and
retu
rns.
E-re
gist
ra-
tio
n is
als
o
req
uir
ed.
htt
p:/
/
ww
w.
in.g
ov/
dor/
43
24
.
htm
.
33
IOW
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
7%.
Mfg
. eq
uip
. ex
emp
tio
n in
clu
des
co
m-
pu
ters
, mac
hin
ery,
equ
ip.,
rep
lace
men
t
par
ts, a
nd
su
pp
lies,
if t
he
pro
per
ty is
dir
ectl
y an
d p
rim
arily
use
d in
mfg
. IC
§
42
3.3
(47
)(a
)(1
).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P t
hat
bec
om
es a
n in
tegr
al p
art
of
oth
er T
PP
sold
at
reta
il. I
C §
§ 4
23
.3(5
1),
42
3.6
(3).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. IC
§
42
3.3
(47
A);
IAC
r.7
01
-22
4.9
. Ser
vice
s ar
e
tax
ed a
t co
nsu
mer
leve
l. IC
§§ 4
23
.2(2
),
(9);
IAC
r.7
01
--22
4.3
(1).
Cab
le e
qu
ip.:
exem
pt.
IC §
42
3.3
(47
A);
IAC
r.7
01
--22
4.9
. Ser
vice
s ar
e ta
xed
at
con
sum
er le
vel.
IC. §
§ 4
23
.2(2
), 4
23
.2(6
)
(a).
Elec
tric
an
d g
as e
qu
ip.:
Lim
ited
ex
emp
-
tio
n. I
C §
42
3.3
(54
). E
lect
rici
ty a
nd
gas
is t
axed
fo
r co
mm
erci
al u
sers
. IC
§§
42
3.3
(2),
(8
4).
No
“go
od
fai
th”
req
. im
-
po
sed
wh
en a
ccep
tin
g
cert
s. IC
§ 4
23
.45
(4);
IAC
r.70
1-1
5.3
(1)(
b);
sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. IC
§
42
3.5
1(3
)(b).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ith
at
leas
t $4
,000
of
tax
liab
ility
per
hal
f-mo
nth
.
IC §
42
3.3
6(9
).
194
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
15,7
03).
Cen
tral
ad
min
. of
the
loca
l tax
es. I
C §
42
3B
.6; I
AC
r.7
01
-
10
7.1
5. L
oca
ls u
se t
he
sam
e ta
x b
ase
as t
he
stat
e. I
C §
42
3B
.5; I
AC
r.70
1-1
07
.9.
Web
site
has
cu
r-
ren
t ta
x r
ates
an
d a
bo
un
dar
y d
atab
ase.
It a
lso
has
his
tori
cal
stat
es t
ax r
ates
, bu
t
no
t lo
cal t
ax r
ates
.
htt
ps:
//ta
x.io
wa
.gov
/
iow
a-ta
x-ra
te-h
isto
-
ry#
sale
s.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
IC
§
42
3.3
(67
).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Rev
enu
e Po
licy
Let
ter
No.
12
30
00
2 (
1/1
2).
Tax
liab
ility
rel
ief
limit
-
ed t
o S
SUTA
req
s. I
C §
42
3.5
2.
Ad
van
ce p
aym
ents
mu
st b
e m
ade
dep
end
-
ing
on
filin
g fr
equ
ency
(mo
re t
han
$60
k p
er
year
req
uir
es 2
mo
nth
ly
pay
men
ts).
IC
§ 4
23
.31
.
Cre
dit
lim
ited
to
use
tax
. IC
§ 4
23
.22
; IA
C
r.70
1-2
23
.2(4
23
). F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
. IC
§ 4
23
.22
; IA
C r
.70
1-
30
.7(4
23
).
Stat
e ac
cele
rate
s ce
r-
tain
leas
e p
aym
ents
. No
cred
it f
or
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
-
men
ts. I
AC
r.7
01
-30
.7.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
IC §
42
3.2
1; L
ette
r of
Fin
din
gs, D
ocu
men
t
Ref
eren
ce: 0
23
00
05
1.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. IA
84
3
Cla
im for
Ref
un
d
(7/1
5).
Fals
e cl
aim
s
act
excl
ud
es
tax
cla
ims.
IC
§
68
5.2
(5).
Cla
ss a
ctio
ns
suit
s n
ot
allo
wed
,
refu
nd
cla
im m
ust
be
file
d w
ith
sta
te.
Ba
ss v
. J.C
. Pen
ney
Co.
, In
c., 8
80
N.W
.2d
751
(Io
wa
2016
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
34
KA
NSA
S
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
1%.
Mfg
. eq
uip
. ex
emp
tio
n in
clu
des
mo
st
M&
E th
at is
an
inte
gral
or
esse
nti
al p
art
of
a p
rod
uct
ion
op
erat
ion
by
a m
fg. f
acili
ty.
KSA
§§ 7
9-3
60
6(m
), (
n),
(kk)(
1).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
TP
P c
on
-
sum
ed in
pro
du
ctio
n, o
r th
at b
eco
mes
an
ingr
edie
nt
or
com
po
nen
t o
f a
man
ufa
c-
ture
d it
em. K
SA §
§ 7
9-3
60
6(m
), (
n).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. K
AR
92
-20
-20
, -2
1. S
ervi
ces
are
tax
ed a
t co
n-
sum
er le
vel.
KSA
§ 7
9-3
60
3(b
).
Cab
le e
qu
ip.:
tax
able
. K
SA §
79
-36
03
(k).
Serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. Id
.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
KSA
§
79
-36
06
(kk)(
D).
Elec
tric
ity
and
gas
so
ld
to c
on
sum
ers
is t
axed
, w/e
xem
pti
on
s fo
r
no
nco
mm
erci
al a
nd
agr
icu
ltu
ral u
se, a
nd
elec
tric
ity
con
sum
ed in
pro
du
ctio
n. K
SA
§§ 7
9-3
60
6(c
), (
n).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
KSA
§ 7
9-3
65
1; s
elle
rs a
llow
ed
120
day
s to
ob
tain
val
id
cert
s. o
n a
ud
it. K
SA §
79
-
36
09
(a)(
2).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs m
ust
cap
ture
/ver
ify
exem
pti
on
acc
ou
nt
nu
m-
ber
s. K
SA §
79
-36
92
et
seq.
No
ven
do
r co
mp
.
KS
has
a b
road
-bas
ed d
irec
t
pay
pro
visi
on
. KSA
§ 7
9-
36
19
(b).
641
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
ios
of
4,45
1).
Cen
tral
ad
min
. of
the
loca
l tax
es. K
SA §
§
12
-18
9, 1
2-1
98
(a),
(b);
KA
R 9
2-2
1-6
. Lo
-
cals
can
var
y fr
om
th
e
stat
e’s
tax
bas
e. K
SA §
12
-18
9a
(a)-
(c);
KA
R
92
-21
-6.
Web
site
on
ly h
as
curr
ent
tax
rat
es g
oin
g
bac
k to
201
6. M
ust
con
tact
DO
R f
or
oth
er
tax
rat
es. W
ebsi
te h
as
bo
un
dar
y d
atab
ase.
htt
p:/
/ww
w.k
srev
-
enu
e.org
/sa
lesr
at-
ech
an
ges.
htm
l.; K
SA §
79
-36
67
.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n d
ig-
ital
pro
du
cts.
Ka
nsa
s
Info
rma
tion
Gu
ide
ED
U-7
1R
(III
)(e)
.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. I
d.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. KSA
§ 7
9-3
66
7.
Selle
rs >
$40
K p
er y
ear
mu
st m
ake
adva
nce
pay
men
ts b
ased
on
firs
t
15 d
ays
of
each
mo
nth
w/p
rio
r m
on
th’s
ret
urn
du
e d
ate.
KSA
§ 7
9-
36
07
(a).
Cre
dit
lim
ited
to
use
tax
. K
SA §
79
-37
05
.
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. KA
R
92
-19
-55
b(b
)(5
).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
KSA
§ 7
9-3
67
4(a
);
KA
R 9
2-1
9-3
b(c
),
-3b(d
)(1
).
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
the
stat
e w
/ou
t
goin
g th
rou
gh t
he
selle
r. F
orm
ST-
21
(2/1
5)
Part
E.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
KSA
§ 7
5-
75
03
(d).
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
35
KE
NT
UC
KY
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
4%.
On
ly c
ove
rs m
ach
iner
y (n
ot
rep
lace
men
t
mac
hin
ery)
fo
r n
ew a
nd
ex
pan
ded
in-
du
stry
use
d d
irec
tly
in m
fg. R
epla
cem
ent
mac
hin
ery
no
t ex
emp
t w
/lim
ited
ex
cep
-
tio
ns.
KR
S §§ 1
39
.01
0(1
5),
13
9.4
80
(10
);
10
3 K
AR
30
:12
0, §
2.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
raw
mat
eria
ls, s
up
plie
s, a
nd
ind
ust
rial
to
ols
wh
ich
en
ter
into
an
d b
eco
me
an in
gred
i-
ent
or
com
po
nen
t p
art
of
the
man
ufa
c-
ture
d p
rod
uct
. KR
S § 1
39
.47
0(1
0).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. K
RS
§
13
9.2
00
. Ser
vice
s ar
e ta
xed
at
con
sum
er
leve
l an
d a
lso
su
bje
ct t
o G
RT.
Id.
Cab
le e
qu
ip.:
tax
able
. K
RS
§ 1
39
.20
0.
Serv
ices
su
bje
ct t
o e
xci
se t
ax a
nd
MV
P
GR
T. K
RS
§ 1
36
.60
4, 1
36
.61
6.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. Ex
emp
-
tio
n li
mit
ed t
o m
fg. K
RS
§ 1
39
.48
0(3
).
Serv
ices
are
tax
ed. K
RS
§ 1
39
.20
0.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
KR
S § 1
39
.27
0(1
); se
llers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. K
RS
§
13
9.2
70
(3)(
a).
Allo
ws
use
of
SSU
TA c
erts
.
Lim
its
use
of
MT
C e
xem
p-
tio
n c
erts
. fo
r re
sale
. KR
S §
13
9.2
70
(1).
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s b
ut
mu
st
ob
tain
an
iden
tifi
cati
on
nu
mb
er.
Pro
vid
es li
mit
ed v
end
or
com
p.:
1.75
% <
$1,
000,
th
en
1.5%
of
the
rem
ain
der
on
each
ret
urn
($5
0 ca
p p
er
rep
ort
ing
per
iod
). K
RS
§
13
9.5
70
.
Dir
ect
pay
lim
ited
to
cer
tain
ind
ust
ries
an
d a
t le
ast
$10
mill
ion
of T
PP.
10
3 K
AR
31
:03
0.
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Th
ere
are
no
loca
l
tax
es a
nd
th
e st
ate
rate
has
no
t ch
ange
d
sin
ce 1
990.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n
“ret
ail s
ales
” o
f d
igit
al
pro
du
cts.
KR
S §
13
9.2
00
(1).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
. KR
S §
13
9.7
95
(6).
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
ited
to u
se t
ax. K
RS
§
13
9.5
10
(1).
Do
es n
ot
pro
vid
e cr
edit
for
oth
er s
tate
s’ lo
cal
tax
es. K
RS
§ 1
39
.51
0.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
KR
S § 1
39
.35
0.
No
wri
tten
pro
-
cess
allo
win
g p
ur-
chas
ers
to o
bta
in
refu
nd
s fr
om
th
e
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
KR
S § 1
34
.58
0.
No
fal
se c
laim
s
act.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. K
RS
§§ 1
34
.58
0(3
).
No
cu
rren
t co
n-
tin
gen
t fe
e an
d
pri
vate
-co
ntr
act
aud
itin
g.
36
LOU
ISIA
NA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
1%.
Mfg
. eq
uip
. is
tax
ed w
/red
uce
d r
ate
of
1-2%
; lim
ited
to
eq
uip
. pre
do
min
atel
y an
d
dir
ectl
y u
sed
in m
fg. o
f TP
P f
or
sale
. LSA
§§ 4
7:3
01
(3)(
i)(i
), (
13
)(k),
(2
8)(
a).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
eri-
als
for
furt
her
pro
cess
ing
into
art
icle
s o
f
TP
P f
or
sale
at
reta
il. L
SA §
47
:30
1(1
0)
(c)(
i)(a
a),
(1
8)(
d)(
i). T
PP
co
nsu
med
in
mfg
. pro
cess
is s
ub
ject
to
a s
tate
-leve
l tax
rate
of
3% (
tax
su
nse
ts o
n J
uly
1, 2
018)
.
Lim
ited
mfg
. ex
clu
sio
n w
/NA
ICS
cod
es
3211
-322
2 an
d 1
1331
0. L
SA §
47
:30
1(3
)
(k)(
i).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le.
Serv
ices
tax
ed a
t co
nsu
mer
leve
l. LS
A §
§
47
:30
1(1
4)(
i), 4
7:3
02
(C),
47
:33
1(C
); LA
Rev
. Bu
ll. N
o. 0
4-0
05
, 01
/21
/20
04
.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e
no
t ta
xed
at
con
sum
er le
vel.
LSA
§§
47
:30
5.1
6, 4
7:3
01
(29
)(x)
; Norm
an
d v
.
Cox
Com
mc’
ns
LA, L
LC, 1
67 S
o.3
d 1
56
(La.
Ct.
Ap
p. 5
Cir
. 201
4).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
w/r
e-
du
ced
sta
te m
ach
iner
y ra
te o
f 1%
. LSA
§
47
:30
1(3
)(i)
(i),
(i)
(ii)
. Co
mm
erci
al a
nd
ind
ust
rial
use
tax
ed. LS
A §
47
:30
5(D
)(1
).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
; no
rule
allo
win
g se
llers
at
leas
t
120
day
s to
ob
tain
val
id
cert
s. o
n a
ud
it.
MT
C a
nd
SSU
TA c
erts
. may
no
t b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: 0.
935%
of
the
tax
du
e (c
app
ed a
t
$1,5
00 p
er m
on
th).
LSA
§
47
:30
6(A
)(3
)(a
).
Dir
ect
pay
lim
ited
to
qu
ali-
fyin
g m
fg. w
ith
tax
able
pu
r-
chas
es o
r le
ases
of
at le
ast
$5M
ove
r th
e la
st 3
yea
rs,
LSA
§ 4
7:3
03
.1.
452
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
10,0
30).
Loca
l au
tho
riti
es
self
-ad
min
iste
r th
e ta
x-
es. L
SA §
47
:33
7.1
3.
Loca
l au
tho
riti
es
hav
e au
ton
om
y in
inte
rpre
tin
g w
hat
is
sub
ject
to
tax
sep
arat
e
fro
m t
he
stat
e. L
SA §
47
:33
8.5
4(A
)(1
).
Web
site
has
cu
rren
t
tax
rat
es, b
ut
no
t
his
tori
cal t
ax r
ates
no
r
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/ww
w.r
even
ue.
lou
isia
na
.gov
/Sa
le-
sTa
x/Sa
lesT
axR
ate
s.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
dig
ital
pro
du
cts
do
wn
load
ed a
nd
sav
ed
in L
A.
No
tax
imp
ose
d
on
per
son
mer
ely
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Lou
isia
na
PLR
05
-00
3
(3/0
5).
No
tax
liab
ility
rel
ief
for
selle
rs o
r p
urc
has
-
ers
rely
ing
on
DO
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
it-
ed t
o u
se t
ax. L
SA
§§ 4
7:3
03
(A)(
3),
47
:33
7.8
6.
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. L
SA §
47
:30
3(A
)
(3).
No
acc
el. l
ease
pay
-
men
ts. U
ncl
ear
if L
A
cred
its
agai
nst
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
LSA
§ 4
7:3
15
(B);
61
LAC
§ I
.43
69
(B).
Wh
ile s
tate
has
a
wri
tten
pro
cess
al-
low
ing
pu
rch
aser
s
to o
bta
in r
efu
nd
s
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r, lo
cals
may
no
t al
low
.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly
to t
axes
. LSA
§
46
:43
9.3
et
seq.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. C
lark
v. S
tate
, 30
So. 3
d
812
(La.
Ap
p. 1
st
Cir
. 200
9).
Co
nti
nge
nt
fee
aud
itin
g is
pro
hib
-
ited
. So
me
loca
ls
use
pri
vate
-co
n-
trac
t au
dit
ing.
Stat
e’s
tax
bas
e
is n
ot
un
ifo
rm,
cert
ain
exem
p-
tio
ns
do
no
t
app
ly t
o
the
ad-
dit
ion
-al
“cle
an”
pen
ny
tax
.
37
MA
INE
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
5%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs m
ach
iner
y
use
d d
irec
tly
and
pri
mar
ily t
o p
rod
uce
TP
P f
or
sale
, or
for
R&
D. M
RS
§ 1
76
0(3
1)
(A),
(3
2).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
inp
uts
th
at
bec
om
e an
ingr
edie
nt
or
com
po
nen
t p
art
of
or
are
con
sum
ed o
r d
estr
oye
d d
irec
tly
and
pri
mar
ily in
th
e p
rod
uct
ion
. MR
S §
17
60
(74
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
MR
S §
25
52
.
Cab
le e
qu
ip.:
tax
able
, w/
bro
adca
st s
ign
als
exem
pti
on
. MR
S § 1
76
0(3
1)(
A).
Ser
vice
s
tax
ed a
t th
e co
nsu
mer
leve
l. M
RS
§ 2
55
2.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
Serv
ices
tax
ed a
t th
e co
nsu
mer
leve
l, w
/lim
ited
exem
pti
on
fo
r re
sid
enti
al e
lect
rici
ty a
nd
gas.
MR
S §§ 1
76
0(9
-B),
(9
-C).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
un
der
cert
ain
cir
cum
stan
ces.
MR
S
Inst
ruct
ion
al B
ullet
in N
o.
36
(3)(
A);
no
ru
le a
llow
ing
selle
rs a
t le
ast
120
day
s to
ob
tain
val
id c
erts
. on
au
dit
,
bu
t fl
exib
le o
n a
ud
it.
Lim
ited
use
of
MT
C e
xem
p-
tio
n c
erts
. fo
r n
on
resi
den
t
reta
ilers
on
ly. 1
8 1
25
CM
R
30
1, §
5.
Selle
rs m
ust
cap
ture
/
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ho
en
gage
in m
fg.
and
uti
litie
s. 1
8 1
25
CM
R
§ 3
08
.
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s. h
ttp:/
/ww
w.
ma
ine.
gov/
reve
nu
e/
sale
suse
/Ref
eren
ce-
Gu
ide2
01
7.p
df.
No
t a
full
SSU
TA
mem
ber
.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
MR
S §§
17
52
(9-E
), (
17
), 1
81
1.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
MR
S
guid
ance
, bu
t p
enal
ty
relie
f m
ay b
e av
aila
ble
.
MR
S § 1
87
-B(7
).
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
ited
to
use
tax
. MR
S § 1
86
2.
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es.
Stat
e h
as a
ccel
. lea
se
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
MR
S § 1
81
1-A
.
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
the
stat
e. F
orm
AP
P-1
53
(1
1/1
7).
No
fal
se c
laim
s
act.
Cla
ss a
ctio
n s
uit
s
allo
wed
. Fli
ppo
v. L
.L. B
ean
, In
c.,
898
A.2
d 9
42 (
Me.
2006
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
38
MA
RY
LAN
D
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs T
PP
use
d
dir
ectl
y an
d p
red
om
inat
ely
at a
ny
stag
e o
f
pro
du
ctio
n in
mfg
. MC
A, T
ax-
Gen
. § 1
1-
21
0(b
); C
OM
AR
03
.06
.01
.32
-2.C
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P
pu
rch
ased
fo
r u
se a
s a
mat
eria
l or
par
t o
f
oth
er T
PP
pu
rch
ased
fo
r sa
le. M
CA
, Ta
x-
Gen
. § 1
1-1
01
(h)(
3)(
ii)(
2).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. C
O-
MA
R 0
3.0
6.0
1.0
1(B
)(2
). W
ired
ser
vice
s
are
no
t ta
xed
, bu
t w
irel
ess
serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. M
CA
, Ta
x-G
en.
§ 1
1-1
01
(m)(
4);
CO
MA
R 0
3.0
6.0
1.0
1
(B)(
2).
Cab
le e
qu
ip.:
tax
able
. M
CA
, Ta
x-G
en. §
11
-21
0(d
); T
V s
ub
scri
pti
on
ser
vice
s ar
e
no
t ta
xed
bu
t p
ay-p
er-v
iew
TV
is t
axed
at c
on
sum
er le
vel.
MC
A, T
ax-
Gen
. § 1
1-
10
1(m
).
Elec
tric
ity
and
gas
eq
uip
.: ex
emp
t. M
CA
,
Tax-
Gen
. § 1
1-1
01
(f)(
1)(
i)(i
i). S
ervi
ces
are
tax
ed a
t co
nsu
mer
leve
l, w
/ex
emp
tio
n
for
resi
den
tial
use
. MC
A, T
ax-
Gen
. §§ 1
1--
10
1(k
)(2
)(ii
i), -
20
7, -
21
0(a
)(2
).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
MC
A, T
ax-
Gen
. § 1
1-
40
8(b
); C
OM
AR
03
.06
.14
;
selle
rs a
llow
ed o
nly
60
day
s to
ob
tain
val
id c
erts
.
on
au
dit
. M
CA
, Ta
x-G
en. §
11
-40
8(b
)(4
)(ii
); C
OM
AR
03
.06
.01
.14
.F.
Lim
ited
use
of
MT
C a
nd
SSU
TA e
xem
pti
on
cer
ts.
Selle
rs m
ust
cap
ture
/
veri
fy e
xem
pti
on
ac-
cou
nt
nu
mb
ers.
CO
MA
R
03
.06
.01
.22
(D)(
2).
Ven
do
r co
mp
.: 1.
2% o
n t
he
firs
t $6
,000
an
d 0
.9%
on
th
e
rem
ain
der
(ca
pp
ed a
t $5
00
per
per
iod
). M
CA
, Ta
x-G
en.
§ 1
1-1
05
.
Dir
ect
pay
lim
ited
to
ven
-
do
rs w
ho
hav
e en
tere
d in
to
Effe
ctiv
e R
ate
Agr
eem
ents
wit
h t
he
Co
mp
tro
ller. M
CA
,
Tax-
Gen
. §§ 1
1-4
07
(a),
(c)
(2)(
i).
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
tax
rat
es, b
ut
no
t
his
tori
cal t
ax r
ates
(no
tax
rat
e ch
ange
last
5 y
ears
). h
ttp:/
/
taxe
s.m
ary
lan
dta
xes.
com
/Bu
sin
ess_
Taxe
s/
Bu
sin
ess_
Tax_
Types
/
Sale
s_a
nd_U
se_T
ax/
Tax_
Info
rma
tion
/
Tax_
Ra
tes/
.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Em
ail
from
Com
ptr
oller
.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
No
tax
liab
ility
rel
ief
for
selle
rs o
r p
urc
has
-
ers
rely
ing
on
DO
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
ited
to
use
tax
. MC
A, T
ax-
Gen
.
§ 1
1-2
21
(c).
Do
es n
ot
pro
vid
e cr
edit
fo
r o
ther
stat
es’ l
oca
l tax
es. M
CA
,
Tax-
Gen
. § 1
1-2
21
(c).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. t
ax p
aym
ents
.
CO
MA
R 0
3.0
6.0
1.2
8.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o
pri
vate
-lab
el c
red
-
it c
ard
s. C
OM
AR
03
.06
.03
.07
(A),
(B
).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e
w/o
ut
goin
g
thro
ugh
th
e se
ller
if t
he
refu
nd
is
$1,0
00+
. CO
MA
R
03
.06
.03
.05
B(2
).
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es. M
CA
, Gen
.
Pro
v. §
8-1
01
.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Hooks
v. C
om
p-
troller
, 265
Md
.
380
(197
2).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
39
MA
SSA
CH
USE
TT
S
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
Y
FAIR
TA
X
PA
YM
EN
T
AD
MIN
.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
8%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed
to m
ater
ials
, to
ols
, fu
el, a
nd
mac
hin
ery
use
d d
irec
tly
and
excl
usi
vely
in “
actu
al m
anu
fac-
ture
” o
f TP
P t
o b
e so
ld. M
GL
c.6
4H
, §§ 6
(s).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to m
ater
ials
, to
ols
, fu
el, a
nd
mac
hin
ery
use
d d
irec
tly
and
excl
usi
vely
in “
actu
al m
anu
fac-
ture
” o
f TP
P t
o b
e so
ld. M
GL
c.6
4H
, §§ 6
(r).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
x-
able
. Ser
vice
s ta
xed
at
con
sum
-
er le
vel.
83
0 C
MR
64
H.1
.6(4
).
Cab
le e
qu
ip.:
exem
pt.
MG
L
c.6
4H
, §§ 6
(r),
(s)
. Ser
vice
s n
ot
tax
ed a
t co
nsu
mer
leve
l. 8
30
CM
R 6
4H
.1.6
(6).
Elec
tric
an
d g
as e
qu
ip.:
ex-
emp
t. M
GL
c.6
4H
, §§ 6
(r),
(s)
.
Elec
tric
ity
and
gas
ser
vice
s
are
tax
ed, w
/so
me
exce
pti
on
s.
MG
L c.
64
H, §
1.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
83
0
CM
R 6
4H
.8.1
(4)(
b);
sel
lers
allo
wed
on
ly 6
0 d
ays
to
ob
tain
val
id c
erts
. on
au
dit
.
83
0 C
MR
64
H.8
.1(4
)(d).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay n
ot
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
.
Dir
ect
pay
allo
wed
to
pu
rch
aser
s w
ith
tax
able
pu
r-
chas
es >
$1M
per
yea
r. 8
30
CM
R 6
4H
.3.1
(4)(
a)(
2).
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
tax
rat
es.
htt
ps/
/ww
w.m
ass
.
gov/
serv
ice-
det
ail
s/
lea
rn-a
bou
t-m
ass
a-
chu
sett
s-ta
x-ra
tes.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Ma
s-
sach
use
tts
Tech
nic
al
Info
rma
tion
Rel
ease
TIR
05
-8, (
VII
)(B
)(8
)
(7/0
5).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. 8
30
CM
R 6
4H
.1.3
(3)(
a),
(14
); L
.R. 1
2-8
.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. MG
L c.
62
C, §
36
B.
No
ad
van
ce p
ay-
men
ts.
Cre
dit
lim
ited
to u
se t
ax. M
GL
c.6
4I, §
7(c
). F
ull
cred
it f
or
oth
er
stat
es’ s
tate
an
d
loca
l tax
es. M
ass
a-
chu
sett
s Te
chn
ica
l
Info
rma
tion
Re-
lea
se T
IR 0
3-1
(III
).
No
acc
el. l
ease
pay
men
ts. N
o
cred
it a
gain
st
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts. M
GL
c.6
4I,
§ 7
(c).
Bad
deb
t d
edu
c-
tio
n d
oes
no
t ap
-
ply
to
pri
vate
-lab
el
cred
it c
ard
s. M
GL
c.6
4H
, § 3
3.
Pu
rch
aser
s ca
n
ob
tain
ven
do
r’s
con
sen
t to
file
clai
m o
n it
s
beh
alf.
Tech
nic
al
Info
rma
tion
Rel
ease
15
-2.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
MG
L c.
12
, §5
B(d
).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
McG
on
agl
e v.
Th
e H
om
e D
epot
U.S
.A.,
Inc.
, 915
N.E
.2d
108
3
(Mas
s. A
pp
ls. C
t.
2009
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
Stat
e is
pu
shin
g fo
r
real
tim
e co
llect
ion
of
the
sale
s ta
x –
see
STR
I
Stu
dy
at:
htt
p:/
/cost
.org
/
globa
lass
ets/
cost
/sta
te-
tax-
reso
urc
es-p
df-pa
ges/
cost
-stu
die
s-a
rtic
les-
re-
port
s/da
ily-
sale
s-ta
x-co
l-
lect
ion
-sys
-
tem
-cou
ld-c
ost
-ma
ssa
chu
-
sett
s-bu
sin
esse
s-$
1.2
-bil
-
lion
.pdf.
40
MIC
HIG
AN
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
6%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs T
PP
use
d
or
con
sum
ed in
ind
ust
rial
pro
cess
ing.
“In
-
du
stri
al pro
cess
ing”
is
a b
roa
dly
defi
ned
.
MC
L §§ 2
05
.54
t(1
), (
7)(
a).
Mfg
. in
pu
ts e
xem
pti
on
bro
adly
co
vers
ingr
edie
nts
, co
mp
on
ents
, fu
els
and
en
ergy
use
d o
r co
nsu
med
in in
du
stri
al p
roce
ss-
ing.
MC
L § 2
05
.54
t(7
)(a
).
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
(10
%).
MC
L § 2
05
.54
v; M
AC
r.20
5.1
10
(5),
(6
). S
ervi
ces
are
tax
ed a
t
con
sum
er le
vel.
MC
L § 2
05
.93
b.
Cab
le e
qu
ip.:
tax
able
. M
CL
§ 2
05
.93
b(9
)
(m)(
vii)
. Ser
vice
s ar
e n
ot
tax
ed a
t co
n-
sum
er le
vel.
MC
L § 2
05
.93
a(5
)(s)
.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
MC
L §
20
5.5
4t.
Elec
tric
ity
and
gas
so
ld t
o c
on
-
sum
ers
are
tax
ed a
t a
red
uce
d r
ate
of
4%.
MC
L § 2
05
.51
a(q
); M
AC
r.2
05
.11
5(1
).
No
“go
od
fai
th”
req
. at
sale
wh
en a
ccep
tin
g ce
rts.
MC
L § 2
05
.62
; sel
lers
allo
wed
120
day
s o
n a
ud
it
to o
bta
in v
alid
cer
ts. M
CL
§
20
5.6
2(7
).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs a
re n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s, b
ut
for
resa
le c
laim
s, t
he
selle
r
mu
st k
eep
a r
eco
rd o
f th
e
pu
rch
aser
’s li
cen
se n
um
ber
(if
the
pu
rch
aser
has
on
e).
MC
L § 2
05
.68
(1).
Ven
do
r co
mp
.: 0.
5% o
f th
e
tax
du
e m
on
thly
at
a ra
te o
f
4% (
cap
ped
at
$20,
000
per
mo
nth
).
MI
has
a b
road
-bas
ed d
irec
t
pay
pro
visi
on
. § 2
05
.98
,
Mic
hig
an
Rev
enu
e A
dm
in-
istr
ati
ve B
ullet
in 2
00
0-3
(6/0
0).
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
had
cu
rren
t
tax
rat
es a
nd
his
tori
-
cal t
ax r
ates
. htt
ps:
//
ww
w.m
ich
iga
n.g
ov/
docu
men
ts/t
rea
sury
/
Sale
sUse
TaxR
e-
port
20
12
_43
25
38
_7.
pdf.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
SSU
TA
Taxa
bil
ity
Ma
trix
.
No
tax
imp
ose
d o
n a
per
son
mer
ely
acce
ss-
ing
pre
-wri
tten
co
m-
pu
ter
soft
war
e. M
CL
§
20
5.5
1a
(o);
Au
to-O
wn
-
ers
Ins.
Co.
v. D
ep’t o
f
Trea
s., 8
80 N
.W.2
d 3
37
(Mic
h. A
pp
. 201
5).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
wri
tten
guid
ance
as
pro
vid
-
ed b
y R
AB
201
6-20
.
Mic
hig
an
SSU
TA
Cer
t. of
Com
pli
an
ce,
08
/01
/20
15
.
Selle
rs m
ust
mak
e m
ul-
tip
le a
dva
nce
pay
men
ts.
MC
L § 2
05
.56
(2)(
b).
Cre
dit
no
t lim
ited
to u
se t
ax. M
CL
§
20
5.9
4(1
)(e)
. Fu
ll cr
ed-
it f
or
oth
er s
tate
s’ s
tate
and
loca
l tax
es. M
CL
§
20
5.9
4(1
)(e)
.
No
acc
eler
ated
leas
e
pay
men
ts. C
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. M
CL
§
20
5.9
4(1
)(e)
.
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. M
CL
§
20
5.5
4i(
b)(
iii)
.
Pu
rch
aser
s re
-
qu
ired
to
ob
tain
refu
nd
s fr
om
the
selle
r. M
CL
§
20
5.2
7a
.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly
to t
axes
. MC
L §
40
0.6
01
et
seq.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
41
MIN
NE
SOTA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
7%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs c
apit
al
equ
ip. u
sed
in M
N e
ssen
tial
to
th
e in
du
s-
tria
l pro
cess
. MS
§ 2
97
A.6
8(5
).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
mat
eria
ls
(in
clu
des
uti
litie
s) c
on
sum
ed in
“in
du
stri
-
al p
rod
uct
ion
,” w
hic
h is
bro
adly
defi
ned
.
MS
§ 2
97
A.6
8(2
).
Wir
ed a
nd
Wir
eles
s eq
uip
.: ex
emp
t. M
S
§ 2
97
A.6
8, S
ubd. 3
5a
. Bo
th s
ervi
ces
are
tax
ed a
t th
e co
nsu
mer
leve
l. M
S §§
29
7A
.61
, su
bd. 3
(i),
29
7A
.66
9.
Cab
le e
qu
ip.:
exem
pt.
MS
§ 2
97
A.6
8,
subd. 3
5a
. Cab
le s
ervi
ces
are
tax
ed a
t a
con
sum
er le
vel.
MS
§ 2
97
A.6
1, s
ubd. 3
(i).
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
MS
§
29
7A
.68
, su
bd. 5
(a).
Bo
th p
rod
uct
s/se
r-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
MS
§
29
7A
.67
, su
bd. 1
5.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
MS
§ 2
97
A.7
2; s
elle
rs a
llow
ed
120
day
s to
ob
tain
val
-
id c
erts
. on
au
dit
. M
S §
29
7A
.66
5(b
)(2
)(i)
.
SSU
TA c
erts
. may
be
use
d.
MS
§ 2
97
A.7
2.
Selle
rs m
ust
cap
ture
th
e
pu
rch
aser
’s M
N I
D n
um
ber
s
(or
oth
er in
form
atio
n if
MN
ID is
un
avai
lab
le)
bu
t ar
e
no
t re
qu
ired
to
ver
ify
them
.
No
ven
do
r co
mp
.
MN
has
a li
mit
ed d
i-
rect
pay
pro
visi
on
. MR
81
30
.34
00
(4).
62 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
85,5
47).
Cen
tral
ad
min
. of
the
loca
l tax
es. M
S §
29
7A
.99
(9)(
a).
Loca
ls
hav
e th
e sa
me
tax
bas
e at
th
e st
ate.
Id.
Stat
e h
as c
urr
ent
tax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e. H
isto
rica
l
info
rmat
ion
no
t fo
un
d.
htt
p:/
/ww
w.r
even
ue.
sta
te.m
n.u
s/bu
sin
ess-
es/s
ut/
Page
s/Lo
cal_
Tax_
Info
.asp
x.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n s
pec
-
ified
an
d o
ther
dig
ital
pro
du
cts
as d
efin
ed.
MS
§§ 2
97
A.6
1(3
)(l)
;
29
7A
.61
, su
bd. 4
(o).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. M
S
§ 2
97
A.6
1, s
ubd. 3
(f);
DO
R S
ale
s Ta
x Fa
ct
Shee
t 1
34
(0
8/1
6).
Tax
liab
ility
rel
ief
limit
ed t
o s
elle
rs a
nd
pu
rch
aser
s re
lyin
g o
n
rate
s an
d b
ou
nd
ary
da-
tab
ase.
MS
§ 2
97
A.9
95
,
subd. 1
0.
Selle
rs o
win
g $2
50,0
00
or
mo
re d
uri
ng
the
pre
-
vio
us
year
mu
st m
ake
adva
nce
pay
men
ts. M
S
§ 2
89
A.2
0, s
ubd. 4
(b).
Cre
dit
lim
ited
to
use
tax. M
S § 2
97
A.8
0.
Full
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
.
MS
§ 2
97
A.8
0.
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Cre
dit
s o
ther
sta
tes’
tax
on
acc
el. l
ease
pay
-
men
ts. M
S § 2
97
A.8
0.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
MS
§§ 2
97
A.8
1, s
ubd.
2, 2
89
A.4
0, s
ubd. 2
; MR
81
30
.74
00
, su
bpa
rt 1
.
Stat
e h
as li
mit
ed
wri
tten
pro
cess
al-
low
ing
pu
rch
aser
s
to o
bta
in r
efu
nd
s
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. M
S §
28
9A
.50
, su
bd. 2
a.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
MS
§
15
C.0
3.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
42
MIS
SISS
IPP
I
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
6%.
Mfg
. eq
uip
. fo
r m
ach
iner
y u
sed
ex
clu
-
sive
ly a
nd
dir
ectl
y in
mfg
. is
tax
able
w/
red
uce
d r
ate
of
1.5%
. MC
A §
27
-65
-17
(1)
(e);
MC
R §
35
-IV-
7.0
3(1
00
). T
his
ex
emp
-
tio
n is
lim
ited
to
“p
lan
t u
se.”
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
raw
ma-
teri
als,
cat
alys
ts, c
hem
ical
s, a
nd
wel
din
g
or
oth
er in
du
stri
al g
ases
(o
ther
th
an n
at-
ura
l gas
). M
CA
§ 2
7-6
5-1
01
(1)(
b);
MC
R §
35
-IV-
7.0
3(4
03
).
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
. MC
A §
27
-65
-10
1(5
); § 5
7-7
3-
21
(14
)(b).
Ser
vice
s ar
e ta
xed
at
con
sum
-
er le
vel.
MC
A §
27
-65
-19
(1)(
d)(
i)(1
).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le. M
CA
§
57
-73
-21
(14
), 2
7-6
5-1
01
(5)(
a)(
v). C
able
serv
ices
are
tax
able
. MC
A §
27
-65
-23
.
Elec
tric
eq
uip
.: ta
xab
le a
t 1.
5% r
ate.
MC
R
§ 3
5-I
V-7
.03
(10
0).
Gas
eq
uip
. is
tax
able
.
Elec
tric
ity
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed, b
ut
ther
e ar
e ce
rtai
n e
xem
pti
on
s.
MC
A §
§ 2
7-6
5-1
9, -
19
(1)(
a)(
i).
No
ex
emp
tio
n c
ert.
pro
cess
. Mu
st r
ely
on
exem
pti
on
ru
ling.
MC
R §
35
-IV-
03
.06
(11
1);
no
ru
le
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
.
on
au
dit
.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay n
ot
be
use
d.
Pu
rch
aser
mu
st p
rovi
de
sell-
er w
ith
ex
emp
tio
n a
uth
ori
-
zati
on
lett
er is
sued
by
DO
R.
MC
R §
35
-IV-
03
.06
(11
1),
35
-IV-
03
.07
(10
1))
.
Ven
do
r co
mp
.: 2%
of
tax
du
e (c
app
ed a
t $5
0 p
er
mo
nth
an
d $
600
per
cal
en-
dar
yea
r). M
CA
§ 2
7-6
5-
33
(1).
Dir
ect
pay
lim
ited
to
cer
tain
ind
ust
ries
. MC
A §
27
-65
-93
;
MC
R §
35
-IV-
01
(30
1)-
(30
4).
2 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
1,48
3,64
9).
Cen
tral
ad
min
. of
the
loca
l tax
es. M
CA
§ 2
7-
65
-24
1(5
)(a
). Lo
cals
use
th
e sa
me
tax
bas
e
as t
he
stat
e. M
CA
§
27
-65
-24
1(2
).
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s.
htt
p:/
/ww
w.d
or.
ms.
gov/
Bu
sin
ess/
Page
s/Sa
les-
Tax-
Ra
tes.
asp
x. D
OR
web
site
do
es n
ot
hav
e a
bo
un
dar
y d
atab
ase.
No
t a
full
SSU
TA
mem
ber
.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
MC
A §
27
-
65
-26
.
No
tax
imp
ose
d o
n a
per
son
mer
ely
acce
ss-
ing
pre
-wri
tten
co
m-
pu
ter
soft
war
e. M
CR
§
35
-IV-
05
.06
(30
0).
Lim
ited
tax
liab
ility
relie
f fo
r se
llers
an
d
pu
rch
aser
s w
ho
rece
ive
a le
tter
ru
ling
fro
m t
he
agen
cy. M
CR
§ 3
5-I
-1.0
1(1
08
).
Selle
rs a
vera
gin
g >
$50,
000
mo
nth
ly m
ust
mak
e o
ne
adva
nce
pay
men
t ea
ch J
un
e
that
eq
ual
s 75
% o
f th
e
curr
ent
Jun
e’s
liab
ility
or
75%
of
the
pri
or
Jun
e’s
liab
ility
. MC
A §
27
-65
-33
.
Cre
dit
lim
ited
to
use
tax
. MC
A §
27
-67
-7(a
).
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. M
CR
§ 3
5-I
V-
1.0
6(1
00
).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. S
tate
an
d
Loca
l Advi
sory
Cou
nci
l
Surv
ey: C
redit
for
Tax
Paid
Lea
ses
(4/1
1).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
MC
A §
27
-65
-33
(9);
MC
R §
35
-IV-
2.0
4(2
01
).
Pu
rch
aser
s re
-
qu
ired
to
ob
tain
refu
nd
s fr
om
th
e
selle
r.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
MC
A §
43
-
13
-20
1 e
t se
q.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Am
eric
an
Ba
nk-
ers
Ins.
Co.
of
Flori
da
v. B
ooth
,
830
So.2
d 1
205
(Mis
s. 2
002)
.
Rec
ent
legi
slat
ion
(SB
297
3 (2
017)
)
allo
ws
con
tin
gen
t
fee
aud
itin
g.
43
MIS
SOU
RI
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
9%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs M
&E
dir
ect-
ly u
sed
in “
larg
er s
cale
” m
fg. o
f a
pro
du
ct
to b
e so
ld f
or
fin
al u
se o
r co
nsu
mp
tio
n.
RSM
o §
14
4.0
30
.2(5
), (
6);
Fred
Web
er,
Inc.
v. D
ir. o
f R
even
ue,
452
S.W
.3d
628
(Mo
. 201
5).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
in
gred
ien
ts
and
co
mp
on
ent
par
ts u
sed
or
con
sum
ed
in p
rod
uci
ng
a p
rod
uct
wit
h t
he
inte
nti
on
of
it b
ein
g so
ld f
or
fin
al u
se o
r co
nsu
mp
-
tio
n. R
SMo §
14
4.0
30
.2(2
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. B
oth
serv
ices
tax
ed a
t co
nsu
mer
leve
l. R
SMo §
14
4.0
20
.1(4
).
Cab
le e
qu
ip: e
xem
pt.
RSM
o §
14
4.0
10
.1(1
5)(
d).
Cab
le s
ervi
ces:
ex
emp
t.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
RSM
o
§§ 1
44
.03
0, 1
44
.05
4(2
). El
ectr
icit
y
and
gas
so
ld t
o c
on
sum
ers
are
gen
eral
ly
tax
ed. R
SMo §
14
4.0
20
.1(3
); 1
2 C
SR 1
0-
10
8.3
00
(2)(
A).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
12
CSR
10
-10
7.1
00
; no
ru
le
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
. on
aud
it, b
ut
DO
R a
llow
s u
nti
l
adm
inis
trat
ive
hea
rin
g to
pro
du
ce c
erts
.
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 2%
of
tax
du
e. R
SMo §
14
4.1
40
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ho
pu
rch
ase
mo
re
than
$75
0,00
0 o
f TP
P a
nd
tax
able
ser
vice
s p
er y
ear.
12
CSR
10
-10
4.0
40
(2)(
B).
1,92
5 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
3,11
1).
Cen
tral
ad
min
. of
the
loca
l tax
es.
RSM
o §
§ 3
2.0
87
(6),
14
4.7
57
(3),
(4
).
Loca
ls u
se t
he
sam
e
tax
bas
e as
th
e st
ate.
RSM
o §
§ 3
2.0
87
(5),
(7),
14
4.7
57
(3),
(4
).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bac
k to
199
7 b
ut
do
es
no
t h
ave
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/dor.m
o.go
v/
bu
sin
ess/
sale
s/ra
tes/
.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
L.R
.
73
38
(1
2/1
3).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. 1
2
CSR
10
-10
9.0
50
(3)(
I).
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
.
Selle
rs o
win
g $1
0,00
0
or
mo
re e
very
6
mo
nth
s m
ust
mak
e
4 ad
van
ce p
aym
ents
per
mo
nth
. RSM
o §
14
4.0
81
; 12
CSR
10
-
10
4.0
30
(3).
Cre
dit
lim
ited
to
use
tax
. RSM
o §
32
.20
0,
Art
. V. F
ull
cred
it f
or
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. R
SMo §
32
.20
0, A
rt. V
.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
on
an
amo
rtiz
ed b
asis
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
RSM
o §
§ 1
44
.19
0,
14
4.6
96
; 12
CSR
10
-
10
2.1
00
.
Pu
rch
aser
can
ob
-
tain
an
ass
ign
men
t
of
righ
ts f
rom
th
e
selle
r.
Form
54
40
(12
/14
).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
Cla
ss a
ctio
n s
uit
s
allo
wed
.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
MO
NTA
NA
– N
ot
Ap
pli
cab
le
44
NE
BR
ASK
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
4%.
Mfg
. mac
hin
ery
and
eq
uip
. is
exem
pt
if
pu
rch
ased
fo
r u
se in
mfg
., b
ut
excl
ud
es
vari
ou
s it
ems
no
t u
sed
in g
uid
ing,
co
n-
tro
llin
g, o
per
atin
g, o
r m
easu
rin
g o
f th
e
mfg
. pro
cess
. NR
S §§ 7
7-2
70
4.2
2, 7
7-
27
01
.47
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
ingr
e-
die
nts
an
d c
om
po
nen
t p
arts
of
pro
du
ct
man
ufa
ctu
red
. 31
6 N
AR
&R
1-1
07
.04
-10
7.0
5.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. 3
16
NA
R&
R 1
-06
5.0
4. B
oth
ser
vice
s ar
e ta
xed
on
co
nsu
mer
leve
l. N
RS
§ 7
7-2
70
1.1
6(2
)
(b).
Cab
le e
qu
ip.:
tax
able
. 3
16
NA
R&
R
1-0
81
.05
. Ser
vice
s ar
e ta
xed
at
con
sum
er
leve
l. N
RS
§§ 7
7-2
70
1.1
6(2
)(d),
(3
)(b).
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
NR
S § 7
7-2
70
4.1
3. E
lect
rici
ty a
nd
gas
sold
to
co
nsu
mer
s ar
e ta
xed
. NR
S § 7
7-
27
01
.16
(2)(
c).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
31
6
NA
R&
R 1
-01
3.0
2A
; sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. 3
16
NA
R&
R 1
-01
3.0
2A
.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 2.
5% o
f ta
x
du
e (c
app
ed a
t $3
,000
per
mo
nth
). N
RS
§ 7
7-2
70
3(2
)
(d).
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ho
mak
e ta
xab
le
pu
rch
ases
of
at le
ast
$3M
per
yea
r.
31
6 N
AR
&R
1-0
97
.03
.
236
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
7,73
9).
Cen
tral
ad
min
. of
the
loca
l tax
es. N
RS
§§
77
-27
,14
3, 1
3-2
81
4,
13
-32
4. L
oca
ls u
se
the
sam
e ta
x b
ase
as
the
stat
e. N
RS
§ 7
7-
27
,14
2(1
).
Web
site
has
cu
rren
t
tax
rat
es, h
isto
rica
l tax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e, b
ut
do
es n
ot
incl
ud
e lo
cal t
ax r
ates
.
htt
p:/
/ww
w.r
even
ue.
neb
rask
a.g
ov/r
e-
sea
rch
/ch
ron
olo
gy.
htm
l.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
NR
S § 7
7-
27
01
.16
(9).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Neb
rask
a I
nfo
rma
tion
Gu
ide
No.
6-5
11
-20
11
(6/1
1).
Lim
ited
tax
liab
ility
relie
f fo
r se
llers
an
d
pu
rch
aser
s re
lyin
g o
n
SSU
TA g
uid
ance
. NR
S §
77
-27
12
.05
(7).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. NR
S § 7
7-2
70
4.3
1.
Full
cred
it f
or
oth
er
stat
e an
d lo
cal t
axes
.
31
6 N
AR
&R
1-0
71
.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. 31
6
NA
R&
R 1
-01
8, -
07
1.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
NR
S § 7
7-2
70
8(2
)(j)
.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. Fo
rm 7
(2/1
6).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
NR
S § 6
8-
93
4.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
45
NE
VA
DA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
6%.
Mfg
. eq
uip
. is
tax
able
. Tax
imp
ose
d o
n s
ale
of T
PP
to
per
son
s w
ho
pu
rch
ase
it f
or
use
in m
fg.,
pro
du
cin
g, o
r p
roce
ssin
g T
PP.
NA
C
37
2.3
70
(1).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P
inco
rpo
rate
d in
to m
anu
fact
ure
d a
rtic
les
to b
e so
ld. N
AC
37
2.3
70
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. N
RS
§
37
2.1
05
. Bo
th s
ervi
ces
are
no
t su
bje
ct t
o
sale
s ta
x. N
RS
§ 3
63
C.
Cab
le e
qu
ip.:
tax
able
. NR
S § 3
72
.10
5;
NA
C 3
72
.15
5(3
). S
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
NR
S §§ 3
63
C, 3
72
.73
4,
37
4.7
39
.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. NR
S §
37
2.1
05
. Ele
ctri
city
an
d g
as a
re n
ot
tax
ed
at t
he
con
sum
er le
vel.
NR
S §§ 3
74
.30
0,
37
2.2
95
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
NA
C
37
2.7
30
, 37
2.7
35
; sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. N
AC
37
2.7
30
, 37
2.7
35
.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 0.
25%
of
tax
du
e. N
RS
§§ 3
72
.37
0(1
),
37
2.3
55
.
Dir
ect
pay
lim
ited
to
pu
r-
chas
ers
wh
o d
o n
ot
mai
n-
tain
a p
lace
of
bu
sin
ess
in
Nev
ada.
NR
S § 3
60
B.2
60
(1).
18 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
150,
031)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. N
RS
§§
37
4.7
23
, 37
4.3
80
. Lo
-
cals
use
th
e sa
me
tax
bas
e as
th
e st
ate.
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e b
ut
do
es
no
t h
ave
his
tori
cal
rate
s.
htt
p:/
/ta
x.n
v.go
v/
Pu
bli
cati
on
s/Sa
les_
an
d_U
se_T
ax_
Pu
bli
-
cati
on
s/.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Ne-
vada
Sta
te T
axa
bil
ity
Ma
trix
ver
sion
20
15
.4.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
T g
uid
-
ance
. NR
S § 3
60
B.2
50
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. NA
C 3
72
.05
5. F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
. Id.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
pro
visi
on
do
es n
ot
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. N
RS
§§
37
2.3
68
(1),
(4
).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. N
RS
§
37
2.6
30
(2).
NV
fal
se c
laim
s ac
t
may
ap
ply
to
tax
-
es. N
RS
§ 3
57
.01
0
et s
eq.
Cla
ss a
ctio
n s
uit
on
inte
rnet
acc
ess
fees
cu
rren
tly
pen
din
g.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
NE
W H
AM
PSH
IRE
– N
ot
Ap
pli
cab
le
46
NE
W J
ER
SEY
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
3%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
for
use
dir
ectl
y an
d p
rim
arily
in t
he
pro
du
c-
tio
n o
f TP
P t
hro
ugh
mfg
., as
sem
blin
g, o
r
refi
nin
g. N
JRS
§ 5
4:3
2B
-8.1
3(a
).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P
wh
ich
will
bec
om
e p
art
of
the
fin
ish
ed
pro
du
ct. N
JRS
§ 5
4:3
2B
-8.1
3(a
); N
JAC
18
:24
-4.4
(a).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. N
JRS
§ 5
4:3
2B
-8.1
3(c
). B
oth
ser
vice
s ta
xed
at
con
sum
er le
vel.
NJR
S § 5
4:3
2B
-3(f
)(1
).
Cab
le e
qu
ip.:
exem
pt.
NJR
S §
54
:32
B-8
.13
(c).
Cab
le s
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
NJR
S §
54
:32
B-2
(cc)
(13
).
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
NJR
S
§ 5
4:3
2B
-8.1
3(b
). E
lect
rici
ty a
nd
gas
pro
du
cts/
serv
ices
so
ld t
o c
on
sum
ers
are
tax
ed. N
JRS
§§ 5
4:3
2B
-2(g
), -3
(a),
-8.1
1.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
Selle
rs a
llow
ed 1
20 d
ays
to
ob
tain
val
id c
erts
. on
au
dit
.
NJA
C 1
8:2
4-1
0.4
(d).
SSU
TA e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
.
Dir
ect
pay
allo
wed
if s
ho
wn
it is
imp
oss
ible
to
det
erm
ine
at t
he
tim
e o
f sa
le. N
JRS
§
54
:32
B-1
2(b
).
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
NJR
S §
34
:1B
-20
4.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s.
htt
p:/
/ww
w.s
tate
.
nj.u
s/tr
easu
ry/t
axa
-
tion
/sa
lest
ax.
shtm
l.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
ig-
ital
pro
du
cts.
NJR
S §
54
:32
B-2
(zz)
, -3
(a).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. L
R:
20
12
-4-S
UT (
06
/12
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
T g
uid
-
ance
rel
ated
to
SSU
TA.
NJR
S § 5
4:3
2B
-14
(g).
Selle
rs o
win
g $3
0,00
0
or
mo
re in
th
e p
rio
r
year
mu
st m
ake
mo
nth
-
ly a
dva
nce
pay
men
ts.
NJA
C 1
8:2
4-1
1.2
(a)-
(c);
NJR
S § 5
4:3
2B
-17
(b).
Cre
dit
lim
ited
to
use
tax
. NJR
S § 5
4:3
2B
-
11
(6).
Do
es n
ot
pro
vid
e cr
edit
fo
r o
ther
stat
es’ l
oca
l tax
es. N
JRS
§ 5
4:3
2B
-11
(6).
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
No
cre
dit
aga
inst
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. NJR
S §
54
:32
B-7
(c).
Bad
deb
t d
edu
ctio
n
pro
visi
on
do
es n
ot
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. N
JRS
§
54
:32
B-1
2.1
.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. N
JRS
§
54
:32
B-2
0(a
).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
NJR
S §
2A
:32
C-2
. See
als
o S
tate
of
New
Jer
sey
ex r
el.
Ca
mpa
gna
v. P
ost
Inte
gra
tion
s, I
nc.
,
166
A.3
d 1
177
(N.J
. Su
per
. Ct.
Ap
p.
Div
. 201
7).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Ava
llon
e v. S
ears
Hold
ing
Corp
.,
0000
04-2
010,
2013
WL
1501
450
(N.J
. Tax
Ap
r. 1,
2013
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
47
NE
W M
EX
ICO
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 6
0%.
Mfg
. eq
uip
. tax
able
fo
r m
ach
iner
y u
sed
in
mfg
., p
roce
ssin
g, o
r fa
bri
cati
ng.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
ingr
edi-
ents
or
com
po
nen
t p
arts
of
man
ufa
ctu
red
pro
du
cts
as w
ell a
s so
me
con
sum
able
s.
NM
S § 7
-9-4
6.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
NM
AC
3.2
.1.1
8.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
NM
AC
3.2
.1.1
8(A
).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. NM
S §
7-9
-46
(F)(
2).
Elec
tric
ity
and
gas
are
tax
ed
at t
he
con
sum
er le
vel.
NM
S § 7
-9-3
.5.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
NM
S § 7
-9-4
3(B
); N
MA
C
3.2
.20
1.1
4; s
elle
rs a
llow
ed
on
ly 6
0 d
ays
to o
bta
in v
alid
cert
s. o
n a
ud
it. N
MS
§ 7
-9-
43
(A).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
in li
m-
ited
cir
cum
stan
ces.
NM
AC
3.2
.20
1.1
3, 3
.2.2
01
.19
.
Bu
yers
mu
st p
ut
the
selle
r’s
gro
ss r
ecei
pts
tax
reg
istr
a-
tio
n n
um
ber
on
th
e ce
rt.
No
ven
do
r co
mp
.
Do
es n
ot
issu
e d
irec
t p
ay
per
mit
s. L
imit
ed a
bili
ty t
o
ente
r in
to a
gree
men
ts. N
MS
§ 7
-1-2
1.1
.
267
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
7,71
2).
Cen
tral
ad
min
. of
the
loca
l tax
es. N
MS
§§
7-1
-2, 7
-19
D-8
. Lo
cals
use
s th
e sa
me
tax
bas
e
as t
he
stat
e. N
MS
§§
7-1
9D
-4(A
), 7
-20
C-4
.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bu
t d
oes
no
t h
ave
a
bo
un
dar
y d
atab
ase.
htt
p:/
/ww
w.ta
x.n
ew-
mex
ico.
gov/
Bu
sin
ess-
es/t
ax-
table
s.a
spx.
No
t a
full
SSU
TA
mem
ber
.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
NM
S § 7
-9-
3.5
(A)(
1).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
No
tax
liab
ility
relie
f fo
r se
llers
an
d
pu
rch
aser
s re
lyin
g
on
TR
D g
uid
ance
, w/
limit
ed p
enal
ty r
elie
f.
NM
S. §
7-1
-69
, NM
AC
3.1
.11
.11
(A).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. NM
S §§ 7
-9-7
9.1
,
7-9
-79
(A).
Fu
ll cr
edit
for
oth
er s
tate
s’ s
tate
and
loca
l tax
es. N
MA
C
3.2
.30
1.8
; NM
S § 7
-5-1
,
Art
. V.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
NM
S § 7
-9-6
7.
Lim
ited
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s to
ob
tain
use
tax
refu
nd
s fr
om
th
e
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
NM
S § 7
-1-2
6.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
NM
S § 4
4-
9-3
(E).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed u
nle
ss
adm
inis
trat
ive
rem
edie
s ex
hau
st-
ed.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
48
NE
W Y
OR
K
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs M
&E
dir
ectl
y an
d p
red
om
inat
ely
use
d o
r
con
sum
ed in
th
e p
rod
uct
ion
of T
PP,
gas,
elec
tric
ity,
refr
iger
atio
n, o
r st
eam
fo
r sa
le.
NY
TL
§ 1
11
5(a
)(1
2).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
e-
rial
s so
ld a
s a
ph
ysic
al c
om
po
nen
t p
art.
NY
TL
§ 1
10
1(b
)(4
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t.
NY
TL
§ 1
11
5(a
)(1
2-a
). B
oth
ser
vice
s ar
e
tax
ed o
n c
on
sum
er le
vel.
NY
TL
§§ 1
86
-e,
11
05
(b)(
1)-
(3).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le (
limit
ed t
o
equ
ip. u
sed
in p
rogr
amm
ing
and
tra
ns-
mis
sio
n).
NY
TL
§§ 1
11
5(a
)(3
8),
(3
9);
TSB
-M-8
0(6
)S. S
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
NY
TL
§§ 1
10
5(c
)(9
)(i)
,
(ii)
; 18
6-e
2(b
)(2
);TSB
-M-8
0(6
)S.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
NY
TL
§§
11
15
(a)(
12
), (
c)(1
), (
c)(2
). E
lect
rici
ty
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed, w
/
exem
pti
on
s. N
YTL
§ 1
10
5(b
)(1
).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
20
NY
CR
R 5
32
.4(b
)(2
); N
o
rule
allo
win
g se
ller
120
day
s
to o
bta
in v
alid
cer
ts. o
n a
u-
dit
. 20
NY
CR
R 5
32
.4(b
)(2
).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay n
ot
be
use
d.
NY
TL
§ 1
13
2(c
); TB
-ST-
24
0
(3/1
0).
Selle
rs n
ot
req
uir
ed t
o v
erif
y
exem
pti
on
acc
ou
nt
nu
m-
ber
s. N
YC
RR
53
2.4
(b).
Lim
ited
ven
do
r co
mp
.: 5%
of
tax
es d
ue
(cap
ped
at
$200
per
rep
ort
ing
per
iod
). Se
ll-
ers
filin
g m
on
thly
ret
urn
s
or
sub
ject
to
Pro
mp
Tax
are
no
t el
igib
le f
or
the
cred
it.
NY
TL
§ 1
13
7(f
); T
B-S
T-9
25
(11
/10
).
NY
has
a b
road
-bas
ed d
irec
t
pay
pro
visi
on
. NY
TL
§
11
32
(c)(
2).
85 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
227,
978)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. N
YS
Offi
ce
of
the
Sta
te C
om
p-
troller
, “Lo
cal G
over
n-
men
t Sa
les
Taxe
s in
New
York
Sta
te: 2
01
5
Upda
te,”
Ma
r. 2
01
5.
Som
e lo
cals
do
no
t
use
th
e sa
me
tax
bas
e
as t
he
stat
e. I
d.;
Pu
b.
75
0 (
11
/15
) pg.
20
.
Web
site
has
cu
rren
t
tax
rat
es a
nd
his
tori
-
cal t
ax r
ates
bu
t d
oes
no
t h
ave
a b
ou
nd
ary
dat
abas
e.
htt
ps:
//w
ww
.ta
x.
ny.
gov/
pu
bs_
an
d_
bu
lls/
pu
bli
cati
on
s/
sale
s/ra
tes_
by_
loca
l_
juri
sdic
tion
.htm
.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
TSB
-M-1
1(5
)S (
4/1
1).
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e
bas
ed o
n c
on
stru
ctiv
e
po
sses
sio
n o
f TP
P. TB
-
ST-1
28
(8
/14
) pg.
2.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
TF
guid
ance
.
Selle
rs o
win
g m
ore
than
$50
0,00
0 p
er y
ear
mu
st m
ake
adva
nce
pay
men
ts. N
YTL
§
10
(b)-
(c).
Cre
dit
lim
ited
to
use
tax
. NY
TL
§ 1
11
8(7
)
(a);
TB
-ST-
76
5 (
Oct
. 9,
20
13
). F
ull
cred
it f
or
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. N
YTL
§
11
18
(7).
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Lim
ited
cre
dit
on
acce
l. le
ase
pay
men
ts.
TSB
-A-1
5(50
)S.
Bad
deb
t d
edu
ctio
n
pro
visi
on
do
es n
ot
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. R
epea
led
7/1/
10.
Pu
rch
aser
s ca
n o
b-
tain
ref
un
ds
fro
m
the
stat
e w
/ou
t
goin
g th
rou
gh t
he
selle
r. TB
-ST-
35
0
(6/1
4).
Allo
ws
tax
fal
se
clai
ms
acti
on
s.
N.Y
.F.L
. § 1
87
et.
seq.;
See
e.g.
, Peo
-
ple
Sch
nei
der
ma
n
v. S
pri
nt
Nex
tel
Corp
., 26
N.Y
.3d
98 (
2015
).
Cla
ss a
ctio
n
law
suit
s al
low
ed
for
tax
es. E
s-
tler
v. D
un
kin
Bra
nds,
In
c., 2
016
WL
3086
073
(S.D
.N.Y
.).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
49
NO
RT
H C
AR
OLI
NA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
1%.
Eff.
7/1/
18, m
fg. e
qu
ip. e
xem
pt
for
ma-
chin
ery
par
ts, a
nd
acc
esso
ries
use
d in
th
e
pro
du
ctio
n p
roce
ss (
pri
or
to 7
/1/1
8 a
1%
tax
, $80
cap
per
art
icle
, ap
plie
d).
NC
GS
§
10
5-1
87
.51
, N.C
.G.S
. § 1
05
-16
4.1
3.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
sal
es o
f
TP
P t
hat
en
ter
into
or
bec
om
e an
ingr
e-
die
nt
or
com
po
nen
t p
art
of T
PP
th
at is
man
ufa
ctu
red
. NC
GS
§ 1
05
-16
4.1
3(8
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. N
CG
S
§ 1
05
-16
4.1
3(5
b).
Bo
th s
ervi
ces
tax
ed a
t
con
sum
er le
vel.
NC
GS
§ 1
05
-16
4.4
C.
Cab
le e
qu
ip.:
exem
pt.
NC
GS
§ 1
05
-
16
4.1
3(5
d).
Ser
vice
s ar
e ta
xed
at
con
-
sum
er le
vel.
NC
GS
§ 1
05
-16
4.4
(a)(
6).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
, on
ly m
fg.
is e
xem
pt.
NC
GS
§§ 1
05
-16
4.1
3(8
), (
8a
).
Elec
tric
ity
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed, w
/so
me
exem
pti
on
s. N
CG
S § 1
05
-
16
4.4
(a)(
9).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
NC
GS
§ 1
05
-16
4.2
8(a
);
selle
rs a
llow
ed 1
20 d
ays
to
ob
tain
val
id c
erts
. on
au
dit
NC
GS
§ 1
05
-16
4-2
8(b
).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
NC
GS
§ 1
05
-
16
4.2
8(b
).
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ith
at
leas
t $5
M in
ann
ual
TP
P p
urc
has
es. N
CG
S
§ 1
05
-16
4.2
7A
(a).
104
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
91,6
87).
Cen
tral
ad
min
. of
the
loca
l tax
es. N
CG
S §§
10
5-4
69
(a).
Loca
ls
use
th
e sa
me
tax
bas
e
as t
he
stat
e. N
CG
S §§
10
5-4
67
.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e. h
ttps:
//
ww
w.n
cdor.g
ov/t
ax-
es/s
ale
s-a
nd-u
se-ta
x/
sale
s-a
nd-u
se-ta
x-
rate
s-oth
er-in
form
a-
tion
.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n a
list
of
dig
ital
pro
du
cts
del
iver
ed o
r ac
cess
ed
elec
tro
nic
ally
th
at
wo
uld
be
tax
able
if s
old
in a
tan
gib
le
med
ium
. NC
GS
§ 1
05
-
16
4.4
(a)(
6b).
No
tax
imp
ose
d o
n a
per
son
mer
ely
acce
ss-
ing
pre
-wri
tten
co
m-
pu
ter
soft
war
e. I
mport
-
an
t N
oti
ce: C
om
pu
ter
Soft
wa
re (
2/1
0).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
. NC
GS
§§
10
5-1
64
.42
L, -2
64
.
Selle
rs o
win
g $2
0,00
0
or
mo
re p
er m
on
th
mu
st m
ake
adva
nce
pay
men
ts w
/pri
or
mo
nth
’s r
etu
rn. N
CG
S §
10
5-1
64
.4(1
6)(
b2
).
Cre
dit
lim
ited
to
use
tax
. NC
GS
§ 1
05
-
16
4.6
(c).
Ho
wev
er,
tax
cred
it li
mit
ed s
tate
to
stat
e an
d lo
cal t
o lo
cal.
No
acc
el. l
ease
pay
-
men
ts. C
red
it a
gain
st
oth
er s
tate
s’ t
ax o
n
acce
l. le
ase
pay
men
ts.
NC
GS
§ 1
05
-16
4.6
(c).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o
pri
vate
-lab
el c
red
it
card
s. N
CG
S § 1
05
-
16
4.1
3(1
5);
Nort
h
Ca
roli
na
Dir
ecti
ve N
o.
SD-0
3-2
, 10
//1
1/2
01
0.
Stat
e h
as li
mit
ed
wri
tten
pro
cess
al-
low
ing
pu
rch
aser
s
to o
bta
in r
efu
nd
s
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r (e
.g.,
cert
ain
can
celle
d
serv
ice
con
trac
ts).
NC
GS
§ 1
05
-
16
4.1
1A
(b)(
2);
Sale
s a
nd U
se T
ax
Tech
nic
al B
ullet
in
34
-21
(A).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
NC
GS
§
1-6
07
(c).
Som
e cl
ass
acti
on
suit
s al
low
ed.
NC
GS
§ 1
05
-
24
1.1
8.
Co
nti
nge
nt
fee
and
pri
vate
-co
n-
trac
t au
dit
ing
pro
hib
ited
. N
CG
S
§ 1
05
-24
3.1
(a1
).
50
NO
RT
H D
AK
OTA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
8%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs M
&E
use
d
dir
ectl
y in
mfg
. of T
PP
fo
r w
ho
lesa
le,
reta
il, o
r le
ase,
an
d m
ust
be
use
d in
a n
ew
mfg
. pla
nt
or
in a
ph
ysic
al o
r ec
on
om
ic
exp
ansi
on
of
an e
xis
tin
g m
fg. p
lan
t. N
DC
C
§ 5
7-3
9.2
-04
.2-0
1(2
1);
ND
AC
§ 8
1-0
4.1
-
01
-23
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
inp
uts
that
en
ter
or
bec
om
e in
gred
ien
ts o
r co
m-
po
nen
ts o
f TP
P. N
DC
C §
§ 5
7-3
9.2
-04
(21
),
(27
).
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
. ND
CC
§ 5
7-3
9.2
-04
.3(3
). B
oth
serv
ices
tax
ed a
t co
nsu
mer
leve
l. N
DC
C
§§ 5
7-3
9.2
-04
.3(3
); 5
7-3
9.2
-01
(17
).
Cab
le e
qu
ip.:
tax
able
. N
DA
C §
§ 8
1-0
4.1
-
04
-41
.1, 8
1-0
4.1
-01
-23
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
Id.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. ND
CC
§
57
-39
.2-0
4.3
(e).
Elec
tric
ity
and
gas
so
ld
to c
on
sum
ers
are
no
t ta
xed
. ND
CC
§§ 5
7-
39
.2-0
4(2
7),
(4
9),
(5
3).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
ND
CC
§ 5
7-3
9.2
-19
; sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it.
SSU
TA e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 1.
5% o
f ta
x
du
e (c
app
ed a
t $1
10 p
er
retu
rn).
ND
CC
§ 5
7-3
9.2
-
12
.1(1
).
Dir
ect
pay
allo
wed
to
app
lican
ts m
akin
g su
ffici
ent
pu
rch
ases
to
just
ify
the
exp
ense
of
tax
dep
artm
ent
aud
its.
ND
AC
§ 8
1-0
4.1
-
01
-05
.
147
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
4,57
5).
Cen
tral
ad
min
. of
the
loca
l tax
es. N
DC
C §
§
11
-09
.1-0
5(2
)(d),
40
-05
.1-0
6(1
6)(
d),
57
-01
-02
.1(1
). Lo
cals
use
th
e sa
me
tax
bas
e
as t
he
stat
e. N
DC
C §
§
11
-09
.1-0
5(2
)(a
), 4
0-
05
.1-0
6(1
6)(
a).
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e b
ut
do
es
no
t h
ave
no
t h
isto
rica
l
tax
rat
es.
htt
ps:
//w
ww
.nd.g
ov/
tax/
use
r/bu
sin
esse
s/
form
spu
bli
cati
on
s/
sale
s-u
se-ta
x.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
. ND
CC
§§
57
-39
.2-3
1, .
4-0
7.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. ND
CC
§ 5
7-4
0.2
-
11
. Fu
ll cr
edit
fo
r o
ther
stat
e an
d lo
cal t
axes
.
ND
CC
§ 5
7-4
0.2
-11
.
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Cre
dit
aga
inst
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. ND
CC
§ 5
7-4
0.2
-11
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
ND
CC
§ 5
7-3
9.2
-05
.
Stat
e h
as li
mit
ed
wri
tten
pro
cess
al-
low
ing
pu
rch
aser
s
to o
bta
in r
efu
nd
s
fro
m t
he
stat
e o
n
loca
l tax
es w
/ou
t
goin
g th
rou
gh t
he
selle
r.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
Ad
dre
ss
info
,
bu
t n
ot
SSN
s, a
re
req
uir
ed
on
re-
turn
s.
Form
ST
– Sa
les,
Use
, an
d
Gro
ss
Rec
eipts
Tax
(07
/16
).
51
OH
IO
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
1%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o
M&
E p
rim
arily
use
d in
mfg
. OR
C §
§
57
39
.02
(B)(
42
)(g)
, .0
11
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
eria
ls p
rim
arily
use
d in
mfg
., an
d
mat
eria
ls u
sed
to
man
ufa
ctu
re m
fg.
equ
ip. a
nd
to
tes
t ra
w m
ater
ials
. OR
C
§§ 5
73
9.0
11
(B),
(D
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t.
OR
C §
57
39
.02
(B)(
34
). Se
rvic
es
tax
ed a
t co
nsu
mer
leve
l. O
RC
§
57
39
.01
.
Cab
le e
qu
ip.:
exem
pt.
OR
C §
57
39
.02
(B)(
53
). S
ervi
ces
are
no
t
tax
ed a
t co
nsu
mer
leve
l. O
RC
§
57
39
.01
(B)(
3)(
p).
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
OR
C
§ 5
73
9.0
2(B
)(4
2)(
a).
Ele
ctri
city
and
gas
so
ld t
o c
on
sum
ers
is s
ub
-
ject
to
uti
lity
or
sale
s ta
xes
. O
RC
§ 5
73
9.0
2(B
)(7
).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
OR
C
§ 5
73
9.0
3(B
)(4
); s
elle
rs a
l-
low
ed 1
20 d
ays
on
to
ob
tain
valid
cer
ts. o
n a
ud
it. O
RC
§ 5
73
9.0
3(B
).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 0.
75%
of
tax
du
e p
er r
etu
rn. O
RC
§
57
39
.12
(B)(
1).
OH
has
a b
road
-bas
ed
dir
ect
pay
pro
visi
on
. OR
C §
57
39
.03
1.
99 lo
cal t
ax ju
risd
ic-
tio
ns
(po
pu
lati
on
rat
io
of
116,
530)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. O
RC
§§ 5
73
9.0
5(A
),
57
41
.06
. Lo
cals
use
the
sam
e ta
x b
ase
as t
he
stat
e. O
RC
§§.
57
39
.02
1(A
), .0
26
(A);
57
41
.02
1(A
)(2
),
.02
3(A
)(2
).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/ww
w.ta
x.oh
io.
gov/
sale
s_a
nd_u
se/
rate
_ch
an
ges.
asp
x.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
ig-
ital
pro
du
cts.
OR
C §
57
39
.01
(B)(
12
).
Tax
imp
ose
d o
n
a b
usi
nes
s m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
OR
C §
57
39
.01
(B)(
3)
(e);
OA
C 5
70
3-9
-46
(B)
(1),
(2
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
T g
uid
-
ance
. OA
C 5
70
3-9
-51
.
Selle
rs >
$75
K p
er y
ear
mu
st m
ake
mo
nth
ly
adva
nce
pay
men
ts w
/
pri
or
mo
nth
’s r
etu
rn.
OR
C §
57
39
.12
2.
Cre
dit
lim
ited
to
use
tax
. OR
C §
57
41
.02
(C)
(5).
Fu
ll cr
edit
fo
r o
ther
stat
es’ s
tate
an
d lo
cal
tax
es. I
d.
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Cre
dit
aga
inst
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. OR
C §
57
41
.02
(C)(
5).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
Ch
rysl
er F
in. C
o., L
.L.C
.
v. W
ilkin
s, 81
2 N
.E.2
d
948
(Oh
io 2
004)
.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. O
RC
§
57
39
.07
.
No
fal
se c
laim
s ac
t
for
tax
es.
Cla
ss a
ctio
n s
uit
s
gen
eral
ly n
ot
allo
wed
. Vol-
ber
s-K
lari
ch v
.
Mid
dle
tow
n M
gt.,
Inc.
, 929
N.E
.2d
434
(Oh
io 2
010)
.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
Oh
io h
as
on
ero
us
tax
on
em
-
plo
ymen
t
serv
ices
.
OR
C §
§
57
39
.01
(B)
(3).
52
OK
LAH
OM
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
7%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs t
he
sale
s o
f
goo
ds,
war
es, m
erch
and
ise,
TP
P, M
&E
to a
mfg
. fo
r u
se in
a m
fg. 6
8 O
S § 1
35
9(1
).
Th
is e
xem
pti
on
co
vers
th
e en
tire
mfg
. op
-
erat
ion
: beg
inn
ing
at t
he
po
int
wh
ere
the
mat
eria
ls e
nte
r th
e m
fg. s
ite
and
en
din
g at
the
po
int
wh
ere
a fi
nis
hed
pro
du
ct le
aves
the
mfg
. sit
e. 6
8 O
S § 1
35
2(1
5).
Mfg
. in
pu
ts e
xem
pti
on
ap
plie
s to
all
TP
P f
or
use
in m
fg. o
per
atio
n. 6
8 O
S §
13
59
(1).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
68
OS
§ 1
35
4(A
)(4
).
Cab
le e
qu
ip.:
exem
pt.
68
OS
§§ 1
35
9(8
),
(9).
Serv
ices
are
gen
eral
ly n
ot
tax
ed a
t
con
sum
er le
vel.
68
OS
§ 1
35
4.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
68
OS
§§
13
59
(1),
13
52
(24
). E
lect
rici
ty a
nd
gas
sold
to
co
nsu
mer
s ar
e ta
xed
, bu
t th
ere
is
an e
xem
pti
on
fo
r re
sid
enti
al u
se. 6
8 O
S
§§ 1
35
4(A
)(2
), 1
35
7(8
).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
68
OS
§ 1
36
1(A
)(3
), O
AC
71
0:6
5-7
-6; s
elle
rs a
llow
ed
120
day
s to
ob
tain
val
id
cert
s. o
n a
ud
it. 6
8 O
S §
13
61
(A)(
3).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
. as
of
July
1, 2
017.
Dir
ect
pay
allo
wed
to
per
son
s w
ho
pu
rch
ase
$800
,000
or
mo
re a
nn
ual
ly
in t
axab
le it
ems.
68
OS
§
13
64
.1(B
).
629
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
5,96
4).
Cen
tral
ad
min
. of
the
loca
l tax
es. 6
8 O
S §
28
1. S
om
e lo
cals
, e.g
.,
elec
tric
an
d g
as, d
o
no
t h
ave
the
sam
e ta
x
bas
e as
th
e st
ate.
68
OS
§ 1
35
7(8
).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
ps:
//w
ww
.ok.g
ov/
tax/
Bu
sin
esse
s/
Tax_
Types
/Bu
sin
ess_
Sale
s_Ta
x/Sa
les_
Use
_
Lodgi
ng_
Tax_
Ra
te_
Ch
art
s/.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
68
OS
§ 1
35
4(A
)(4
)(a
)(9
).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e. 6
8
OS
§ 1
35
7(3
2);
L.R
.
LR-0
9-1
07
(1
0/1
1).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
OT
C g
uid
-
ance
. 68
OS
§ 1
35
4.3
2,
OA
C 7
10
:65
-7-1
6.
Selle
rs o
win
g $3
0,00
0
or
mo
re p
er y
ear
mu
st m
ake
adva
nce
pay
men
ts. 6
8 O
S §
13
65
(D).
Cre
dit
lim
ited
to
use
tax
. 6
8 O
S § 1
40
4(3
).
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. 6
8 O
S § 1
40
4(3
).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. O
AC
71
0:6
5-
1-1
1.
Bad
deb
t d
edu
ctio
n
pro
visi
on
do
es n
ot
app
ly t
o p
riva
te-la
bel
cred
it c
ard
s. 6
8 O
S §
13
66
(A).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
dir
ectl
y fr
om
the
stat
e w
/ou
t
goin
g th
rou
gh
the
selle
r. 6
8 O
S §
13
54
.26
(A).
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly
to t
axes
. 68
OS
§
28
2.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. 6
8
OS
§ 2
82
.
Co
nti
nge
nt
fee
aud
itin
g is
sp
ecif
-
ical
ly p
roh
ibit
ed.
68
OS
§ 2
62
. Eff
.
11/1
/17,
OT
C m
ay
use
pri
vate
-co
n-
trac
t au
dit
ing.
OR
EG
ON
– N
ot
Ap
pli
cab
le
53
PE
NN
SYLV
AN
IA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o T
PP
(in
-
clu
des
E&
M)
pre
do
min
antl
y u
sed
dir
ectl
y
in m
fg. o
r p
roce
ssin
g. 7
2 P
S §§ 7
20
1(k
)
(8)(
A),
(D
); 6
1 P
C §
32
.32
(a).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
su
pp
lies
pre
do
min
atel
y u
sed
dir
ectl
y in
mfg
. 72
PS
§ 7
20
1(k
).
Wir
ed e
qu
ip: e
xem
pt.
Wir
eles
s eq
uip
.: p
ar-
tial
ly t
axab
le. 7
2 P
S §§ 7
20
1(d
)(1
7),
(k)
(8)(
C);
61
PC
§ 6
0.2
0(h
). B
oth
ser
vice
s
are
tax
ed a
t co
nsu
mer
leve
l, w
/res
iden
tial
use
ex
emp
tio
n. 7
2 P
S §§ 7
20
1(m
)(1
),
(rr)
; 61
PC
§ 6
0.2
0.
Cab
le e
qu
ip.:
exem
pt.
72
PS
§§ 7
20
1(d
)
(12
), (
m).
On
ly p
rem
ium
cab
le s
ervi
ces
are
tax
ed o
n c
on
sum
er le
vel.
72
PS
§§
72
01
(m)(
1),
(ll).
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le
(on
ly e
xem
pts
th
e u
se o
f th
is e
qu
ip. t
o
man
ufa
ctu
re T
PP
). 7
2 P
S §§ 7
20
1(k
)
(8)(
A),
(m
). B
oth
ser
vice
s ar
e ta
xed
at
con
sum
er le
vel,
w/
exem
pti
on
fo
r re
si-
den
tial
an
d m
fg. u
se. 7
2 P
S §§ 7
20
1(m
),
72
04
(5);
61
PC
§ 3
1.1
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
72
PS
§ 7
23
7(c
); 6
1 P
C §
32
.2(b
);
selle
rs a
llow
ed o
nly
60
day
s
to o
bta
in v
alid
cer
ts. o
n a
u-
dit
. 61
PC
§ 3
2.2
(b)(
2)(
iii)
.
Lim
ited
use
of
MT
C e
xem
p-
tio
n c
erts
. fo
r re
sale
.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 1%
of
tax
du
e (c
app
ed a
t $2
5 fo
r
mo
nth
ly fi
lers
, $75
fo
r
qu
arte
rly
file
rs, a
nd
$15
0
per
sem
ian
nu
al fi
lers
). 7
2
PS
§ 7
22
7.
Dir
ect
pay
allo
wed
to
tax
-
pay
ers
that
sh
ow
it is
imp
os-
sib
le t
o d
eter
min
e ta
xab
ility
at t
he
tim
e o
f sa
le. 7
2 P
S §
7237
(d);
61
PC
§ 3
4.4
(a).
2 lo
cal s
ales
tax
juri
sdic
tio
ns
(rat
io o
f
6,35
1,19
0).
Cen
tral
ad
min
. of
the
loca
l tax
es. 5
3 P
S §§
12
72
0.5
01
, .5
06
(2).
Loca
ls u
se t
he
sam
e
tax
bas
e as
th
e st
ate.
53
PS
§ 1
27
20
.50
3;
16
PS
§§ 6
15
2-B
(a),
(b).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax r
ates
bu
t d
oes
no
t h
ave
no
t
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/ww
w.r
even
ue.
pa
.gov
/Gen
era
lTa
xIn
-
form
ati
on
/New
s%2
0
an
d%
20
Sta
tist
ics/
Page
s/R
eport
s%2
0
an
d%
20
Sta
tist
ics/
Tax-
Com
pen
diu
m.
asp
x.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
un
der
th
e
defi
nit
ion
of T
PP.
72
PS
§ 7
20
1(m
)(2
); 6
1 P
C
§ 6
0.1
9.
Tax
imp
ose
d o
n a
per
-
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. 7
2 P
S §
72
01
(k)(
1);
61
PC
§
60
.19
.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
.
Selle
rs r
emit
tin
g
$25,
000
or
mo
re f
or
thir
d q
uar
ter
of
pre
-
ced
ing
year
mu
st m
ake
adva
nce
pay
men
ts. 7
2
PS
§§ 7
21
7(a
), 7
24
6,
72
47
.
Cre
dit
lim
ited
to
use
tax
(u
nle
ss s
tate
wh
ere
tax
pai
d a
lso
cre
dit
s
bo
th s
ales
an
d u
se t
ax).
72
PS
§ 7
20
6(a
); 6
1
PC
§ 3
1.7
(b).
Fu
ll cr
ed-
it f
or
oth
er s
tate
s’ s
tate
and
loca
l tax
es. 6
1 P
C §
60
.16
(l).
No
acc
el. l
ease
pay
-
men
ts. U
ncl
ear
if P
A
cred
its
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. 7
2 P
S §§
72
47
.1(a
.1)–
(a.3
).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. 6
1 P
C §
33
.3(b
).
No
fal
se c
laim
s ac
t
for
tax
es.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. S
tra
-
na
ha
n v
. Cn
ty o
f
Mer
cer,
697
A.2
d
1049
(Pa
. Cm
mw
.
1997
).
Co
nti
nge
nt
fee
aud
itin
g is
pro
hib
ited
. 72
PS
§ 2
09
(b).
No
cu
r-
ren
t p
riva
te-c
on
-
trac
t au
dit
ing.
Ho
me
add
ress
-
es a
re
req
uir
ed
on
re-
turn
s.
PA-1
00
(3/0
9).
54
RH
OD
E I
SLA
ND
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
6%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o T
PP
(in
clu
des
M&
E) u
sed
in a
n in
du
stri
al p
lan
t
in c
on
nec
tio
n w
ith
act
ual
man
ufa
ctu
re o
f
TP
P. R
IGL
§ 4
4-1
8-3
0(2
2)(
i).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
ingr
edi-
ents
, co
mp
on
ents
, or
inte
gral
par
ts. R
IGL
§ 4
4-1
8-3
0(7
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. R
IGL
§ 4
4-1
8-3
0(4
5).
Serv
ices
tax
ed a
t co
n-
sum
er le
vel.
RIG
L §§ 4
4-1
8-7
(9),
-12
.1.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
RIG
L § 4
4-1
8-7
(10
).
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
RIG
L §
44
-18
-30
(7).
Ele
ctri
city
an
d g
as s
old
to
con
sum
ers
are
no
t ta
xed
. RIG
L § 4
4-1
8-
30
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
RIG
L
§ 4
4-1
8.1
-18
(C)(
1);
sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. R
IGL
§
44
-18
.1-1
8(C
)(1
).
SSU
TA e
xem
pti
on
cer
ts. m
ay
be
use
d.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
.
Dir
ect
pay
per
mit
lim
ited
to b
usi
nes
ses
that
reg
ula
rly
pu
rch
ase
goo
ds
and
ser
vice
s
for
use
wit
hin
an
d o
uts
ide
the
stat
e. R
IGL
§ 4
4-1
8-
19
.1(a
).
No
loca
l sal
es t
ax
juri
sdic
tio
ns.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
(n
o
rate
ch
ange
w/p
ast
5
year
s). h
ttp:/
/ww
w.
tax.
ri.g
ov/h
elp/f
aq.
ph
p.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Rh
ode
Isla
nd S
tate
Ta
xabil
ity
Ma
trix
ver
sion
20
15
.1.
No
tax
imp
ose
d o
n a
per
son
mer
ely
acce
ss-
ing
pre
-wri
tten
co
m-
pu
ter
soft
war
e. R
ICR
§
SU 1
1-2
5 R
ule
7(3
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. RIG
L § 4
4-1
8.1
-7.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. RIG
L § 4
4-1
8-3
0.A
.
Do
es n
ot
pro
vid
e a
full
cred
it f
or
oth
er s
tate
s’
loca
l tax
es. R
IGL
§ 4
4-
18
-30
.A.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
RIC
R S
U 8
7-6
; RIG
L §
44
-18
.1-2
1.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. h
ttp:/
/
ww
w.ta
x.ri
.gov
/
form
s/2
01
1/
Exc
ise/
Sale
sUse
/
Cla
im%
20
for%
20
Ref
un
d%
20
-%2
0
Sale
s%2
0or%
20
Use
%2
0Ta
x%2
0
20
11
.pdf.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
Cla
ss a
ctio
n s
uit
s
allo
wed
. Lon
g v.
Del
l, In
c., 9
84 A
.2d
1074
(R
.I. 2
009)
.
No
cu
rren
t
pri
vate
-co
ntr
act
aud
itin
g. R
IGL
§
44
-1-3
6.
55
SOU
TH
CA
RO
LIN
A
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
7%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o m
a-
chin
es u
sed
in m
fg.,
pro
cess
ing,
agr
icu
l-
tura
l pac
kagi
ng,
rec
yclin
g, c
om
po
un
din
g,
min
ing,
or
qu
arry
ing
TP
P f
or
sale
. SC
C §
12
-36
-21
20
(17
). M
ach
ines
mu
st b
e in
te-
gral
an
d n
eces
sary
to
th
e m
fg. p
roce
ss.
SCR
11
7-3
02
.5.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P t
hat
is a
n in
gred
ien
t o
r co
mp
on
ent
of T
PP
man
ufa
ctu
red
fo
r sa
le. S
CC
§§ 1
2-3
6-
90
(1)(
c)(i
i), -
11
0(1
)(c)
(ii)
; SC
R 1
17
-
30
2.1
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
SCC
§§
12
-36
-91
0(A
), -1
10
(1)(
k);
SCR
11
7-3
29
.
Cab
le e
qu
ip.:
exem
pt.
SCC
§ 1
2-3
6-
21
20
(26
). C
able
ser
vice
s ar
e ta
xed
at
con
sum
er le
vel.
SCC
§ 1
2-3
6-9
10
(B)(
3);
SCR
11
7-3
29
.4.
Elec
tric
an
d g
as e
qu
ip.:
exem
pt.
SCC
§§
12
-36
-91
0(A
), (
B)(
2).
Serv
ices
tax
ed a
t
con
sum
er le
vel,
w/e
xem
pti
on
s fo
r re
si-
den
tial
use
. SC
C §
§ 1
2-3
6-2
12
0(1
9),
(3
3),
(43
), (
50
), (
66
), (
79
); SC
C §
12
-36
-70
(1)
(e);
SCR
11
7-3
09
.12
.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
SC
C
§ 1
2-3
6-2
51
0; n
o r
ule
allo
w-
ing
selle
rs a
t le
ast
120
day
s
to o
bta
in v
alid
cer
ts. o
n
aud
it. S
CC
§ 1
2-3
6-2
51
0(B
).
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d f
or
sale
s fo
r re
sale
s,
bu
t n
ot
for
reta
il ex
emp
-
tio
ns.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
ex
emp
tio
n a
cco
un
t
nu
mb
ers
pu
rsu
ant
to
stat
ute
.
Ven
do
r co
mp
.: 2%
-3%
(cap
ped
of
$3k
or
$10k
per
year
), SC
C §
12
-36
-26
10
.
SC h
as a
bro
ad-b
ased
dir
ect
pay
pro
visi
on
. SC
C §
12
-36
-
25
10
.
245
loca
l sal
es t
ax ju
-
risd
icti
on
s (p
op
ula
tio
n
rati
o o
f 18
,879
).
Cen
tral
ad
min
. of
the
loca
l tax
es. S
CC
§§
4-1
0-9
0(A
), -3
50
(A),
-43
5(A
), -5
80
(A),
-77
0(A
), -9
40
(B).
Loca
ls n
ot
req
uir
ed
to u
se t
he
sam
e ta
x
bas
e as
th
e st
ate.
SC
Info
rma
tion
Let
ter
#1
6-1
4.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l rat
es o
r
a b
ou
nd
ary
dat
abas
e.
htt
ps:
//dor.s
c.go
v/
tax-
index
/sa
les-
an
d-
use
/Sa
les%
20
Noti
ces/
ST4
39
_04
10
20
15
.pdf.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d w
/ou
t
clea
r st
atu
tory
au
tho
r-
ity
on
cer
tain
dig
ital
pro
du
cts
via
tax
on
com
mu
nic
atio
ns
ser-
vice
s. S
CR
11
7-3
29
. See
als
o S
C R
ev. R
ul.
03
-5;
SC R
ev. R
ul.
12
-1.
Tax
imp
ose
d w
/
ou
t cl
ear
stat
uto
ry
auth
ori
ty o
n c
er-
tain
per
son
s m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e vi
a
tax
on
co
mm
un
icat
ion
serv
ices
. SC
P.L
.R. 1
2-2
;
SCC
§ 1
2-3
6-9
10
(B)
(3);
SCR
11
7-3
29
.4k.
No
tax
liab
ility
rel
ief
for
selle
rs o
r p
urc
has
-
ers
rely
ing
on
DO
R
guid
ance
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. SC
C §
12
-36
-
13
10
(C).
Fu
ll cr
edit
fo
r
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. S
C R
ev. R
ul.
06
-4, 0
5-1
9-2
00
6.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. SC
Rev
.
Ru
l. 0
6-4
, 05
-19
-20
06
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
SCC
§§ 1
2-3
6- 9
0(2
)
(h),
-13
0.
Pu
rch
aser
can
ob
-
tain
sel
ler’
s as
sign
-
men
t o
f re
fun
d
clai
m t
o a
pp
ly
dir
ectl
y to
DO
R
for
refu
nd
. Form
ST-1
4 (
8/1
0).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. S
CC
§
12
-60
-80
(C).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
56
SOU
TH
DA
KO
TA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 5
9%.
No
mfg
. eq
uip
. ex
emp
tio
n f
or
M&
E u
sed
in m
fg. A
RSD
64
:06
:03
:23
; 64
:06
:03
:24
.
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
TP
P
that
bec
om
es a
n in
tegr
al p
art
of
oth
er
TP
P s
old
at
reta
il. S
DC
L 1
0-4
6-9
; AR
SD
64
:06
:03
:25
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
SDC
L
10
-45
-6.1
, -6
.2.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e n
ot
tax
ed a
t co
nsu
mer
leve
l. SD
CL
10
-45
-4,
-4.1
, -5
, -5
.2.
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. Ser
vice
s
tax
ed a
t co
nsu
mer
leve
l. SD
CL
10
-45
-2, -
6;
AR
SD 6
4:0
6:0
3:1
3.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
SDC
L 1
0-4
5-6
.1; A
RSD
64
:06
:01
:15
; sel
lers
allo
wed
120
day
s to
ob
tain
val
id
cert
s. o
n a
ud
it. S
DC
L 1
0-4
5-
61
.1.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
. AR
SD
64
:06
:01
:08
.01
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: 1.
5% o
f ta
x
du
e (c
app
ed a
t $7
0 p
er
retu
rn).
SDC
L 1
0-4
5-2
7.2
.
Dir
ect
pay
lim
ited
to
reta
ilers
wit
h a
t le
ast
$3
mill
ion
in a
nn
ual
pu
rch
as-
es. S
DC
L 1
0-4
6-6
7; A
RSD
64
:01
:01
:33
, 64
:01
:01
:34
.
269
loca
l tax
juri
sdic
-
tio
ns
(rat
io o
f 3,
027)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. SD
CL
10
-52
-4, -
52
A-3
. Lo
cals
use
th
e sa
me
tax
bas
e
as t
he
stat
e. S
DC
L
10
-52
-2.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/dor.s
d.g
ov/
Taxe
s/B
usi
nes
s_Ta
x-
es/N
ewsr
oom
/Ta
x_
Ra
tes/
.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
SD
CL
10
-45
-
2, -
2.4
.
Tax
imp
ose
d o
n a
per
-
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. S
DC
L 1
0-4
5-
1(1
4),
-2.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. SD
CL
10
-59
-27
.
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. SD
CL
10
-46
-6.1
,
-34
.1. F
ull
cred
it f
or
oth
er s
tate
s’ s
tate
, lo
cal
and
sim
ilar
tax
es. I
d.
Stat
e ac
cele
rate
s
cert
ain
leas
e p
aym
ents
.
Cre
dit
s o
ther
sta
tes’
tax
on
acc
el. l
ease
pay
-
men
ts. S
DC
L 1
0-4
6-6
.1,
-34
.1.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
SDC
L 1
0-4
5-3
0.
Pu
rch
aser
s re
-
qu
ired
to
ob
tain
refu
nd
s o
nly
fro
m
the
selle
r. SD
CL
10
-59
-24
.1, -
24
.2.
No
fal
se c
laim
s
act.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. L
ick
v. D
ah
l, 28
5 N
.W.
2d 5
94 (
S.D
. 197
9).
Co
nti
nge
nt
fee
aud
itin
g is
pro
hib
-
ited
. No
cu
rren
t
pri
vate
-co
ntr
act
aud
itin
g.
57
TE
NN
ESS
EE
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
0%.
Mfg
. eq
uip
. ex
emp
tio
n f
or
mac
hin
ery
nec
essa
ry t
o, a
nd
pri
mar
ily f
or,
fab
rica
tio
n
and
pro
cess
ing
of T
PP
fo
r sa
le t
o o
ther
s,
incl
ud
es p
ollu
tio
n c
on
tro
l fac
iliti
es a
nd
R&
D e
qu
ip. T
CA
§ 6
7-6
-20
6(a
).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
mat
e-
rial
s th
at c
om
e in
to d
irec
t co
nta
ct w
ith
man
ufa
ctu
red
pro
du
cts
and
are
co
n-
sum
ed w
ith
in 2
5 d
ays
of
pro
cess
ing
tho
se
pro
du
cts.
TC
R&
R 1
32
0-0
5-0
1-.4
0(2
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. S
er-
vice
s ar
e ta
xed
at
con
sum
er le
vel.
TC
A §
67
-6-2
05
(c)(
3).
Cab
le e
qu
ip.:
exem
pt.
TC
A §
67
-6-3
29
(a)
(15
). S
ervi
ces
are
tax
ed a
t co
nsu
mer
leve
l
wh
en t
he
char
ge is
> $
15 f
or
stat
e sa
les
tax
an
d w
hen
ch
arge
is >
$27
.50
for
loca
l
sale
s ta
x. T
CA
§ 6
7-6
-22
6, 6
7-6
-71
4.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
TC
A §
§ 6
7-6
-10
2(4
4)(
D).
Ele
ctri
city
an
d
gas
serv
ices
so
ld t
o c
on
sum
ers
are
tax
ed.
TC
A §
67
-6-1
02
(89
)(A
).
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
fo
r
resa
le. T
CR
&R
13
20
-5-1
-.78
,
-.68
. DO
R a
llow
s se
llers
120
day
s to
ob
tain
val
id e
xem
p-
tio
n c
erts
.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
No
ven
do
r co
mp
. ex
cep
t
a lim
ited
co
mp
. fo
r o
ut-
of-
stat
e se
llers
. TC
A §
67
-6-
50
9.
No
bro
ad-b
ased
dir
ect
pay
pro
visi
on
. h
ttps:
//tn
.gov
/
ass
ets/
enti
ties
/rev
enu
e/a
t-
tach
men
ts/s
ale
san
du
se.p
df.
298
loca
l sal
es t
ax
juri
sdic
tio
ns
(rat
io o
f
21,2
96).
Cen
tral
ad
min
. of
the
loca
l tax
es. T
CA
§§ 6
7-6
-70
2(a
)(1
),
-71
0(a
)(1
). Lo
cals
use
the
sam
e ta
x b
ase
as
the
stat
e; h
ow
ever
,
ther
e ar
e lo
cal o
pti
on
cap
s o
f $3
,200
per
arti
cle
of T
PP. T
CA
§§ 6
7-6
-70
2(a
)(1
),
-70
4(a
), -2
01
.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s o
r a
bo
un
dar
y
dat
abas
e.
htt
ps:
//w
ww
.tn
.gov
/
ass
ets/
enti
ties
/rev
-
enu
e/a
tta
chm
ents
/
taxl
ist.pdf.
Ass
oci
ate
SSU
TA
mem
ber
.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
TC
A §
67
-
6-2
33
.
Tax
imp
ose
d o
n a
per
-
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. T
CA
§ 6
7-
6-2
05
.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
r-
chas
ers
rely
ing
on
DO
R g
uid
ance
. TC
A §
67
-6-5
33
.
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
ited
to
use
tax
. TC
A §
67
-6-
50
7(a
). F
ull
cred
it f
or
oth
er s
tate
s’ s
tate
, lo
cal
and
sim
ilar
tax
es.
No
acc
el. l
ease
pay
-
men
ts b
ut
con
tin
ues
tax
on
cer
tain
leas
e
pay
men
ts u
sin
g o
rigi
n
loca
tio
n. T
CR
&R
13
20
-
05
-01
-.32
(2).
Cre
dit
s
oth
er s
tate
s’ t
ax o
n
acce
l. le
ase
pay
men
ts.
TC
A §
§ 6
7-6
-50
7(a
),
-31
3(f
); TC
R&
R 1
32
0-
05
-01
-.91
(1).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
TC
A §
67
-6-5
07
(d).
No
wri
tten
pro
-
cess
allo
win
g p
ur-
chas
ers
to o
bta
in
refu
nd
s fr
om
th
e
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
TC
A §
§ 6
7-6
-50
1,
50
2.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
TC
A §
4-1
8-1
03
(f).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. W
ick-
er v
. Com
mr.,
342
S.W
.3d
35
(Ten
n.
Ap
p. 2
010)
.; TC
A §
67
-6-5
38
.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
58
TE
XA
S
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 5
3%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
dir
ectl
y u
sed
or
con
sum
ed in
or
du
rin
g
the
actu
al m
fg. a
nd
dir
ectl
y m
akes
or
cau
ses
a p
hys
ical
or
chem
ical
ch
ange
. TTC
§ 1
51
.31
8(a
),(b
).
Mfg
. in
pu
ts e
xem
pti
on
allo
wed
fo
r TP
P
sold
an
d T
PP
use
d o
r co
nsu
med
du
rin
g
actu
al m
fg. a
nd
th
at d
irec
tly
mak
es o
r
cau
ses
a p
hys
ical
or
chem
ical
ch
ange
. TTC
§§ 1
51
.31
8(a
)(1
), (
2),
15
1.3
18
(b).
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
. TTC
§ 1
51
.31
86
. Bo
th s
ervi
ces
are
tax
ed o
n c
on
sum
er le
vel.
TTC
§
15
1.0
10
1(a
)(6
); 3
4 T
AC
§ 3
.34
4(b
).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le. T
TC
§
15
1.3
18
6(d
). S
ervi
ces
are
tax
ed a
t co
n-
sum
er le
vel.
TTC
§§ 1
51
.01
01
(a)(
6),
(a
)
(2);
34
TA
C §
§ 3
.34
4(b
), 3
.31
3.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
TTC
§ 1
51
.31
7. C
om
mer
cial
ser
vice
s
are
tax
ed a
t th
e co
nsu
mer
leve
l. TTC
§§
15
1.0
10
1(a
)(1
7),
15
1.3
17
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
TTC
§ 1
51
.05
4(b
); s
elle
rs
allo
wed
on
ly 6
0 d
ays
to
ob
tain
val
id c
erts
. on
au
dit
.
TTC
§ 1
51
.05
4(e
).
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
Val
id s
ales
tax
per
mit
nu
mb
ers
req
uir
ed o
n r
esal
e
cert
s.
Ven
do
r co
mp
.: 0.
5% o
f ta
x
du
e o
n a
tim
ely
retu
rn. T
TC
§ 1
51
.42
3. A
dd
itio
nal
1.2
5%
on
pre
pay
men
t am
ou
nt.
TTC
§ 1
51
.42
4.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts p
urc
has
ing
at le
ast
$800
,000
per
yea
r. TTC
§
15
1.4
17
(b).
TAC
§3
.28
8(b
)
(1).
1,65
3 lo
cal t
ax
juri
sdic
tio
ns
(rat
io o
f
15,2
12).
Cen
tral
ad
min
. of
the
loca
l tax
es. T
TC
§§ 3
23
.30
1. L
oca
ls
gen
eral
ly u
se t
he
sam
e
tax
bas
e as
th
e st
ate,
w/e
xce
pti
on
s. TTC
§§
32
1.2
07
, 32
1.2
08
,
32
3.2
07
.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s n
or
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/ww
w.c
om
ptr
ol-
ler.t
exa
s.go
v/ta
xes/
file
-pay/
edi/
sale
s-ta
x-
rate
s.ph
p.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
via
tax
on
info
rmat
ion
ser
vice
s.
TTC
§§ 1
51
.01
0,
15
1.0
09
, 15
1.0
10
1(a
)
(10
).
Tax
imp
ose
d w
/
ou
t cl
ear
stat
uto
ry
auth
ori
ty o
n a
per
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. T
exa
s C
om
p-
troller
’s L
ette
r N
o.
20
08
05
09
5L.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
r-
chas
ers
rely
ing
on
TX
Co
mp
tro
ller
guid
ance
.
Excl
ud
ing
volu
nta
ry
pre
pay
men
ts, n
o a
d-
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. TTC
§ 1
51
.30
3(c
);
34
TA
C §
3.6
1. F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
. 34
TAC
§ 3
.33
8(b
).
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. 34
TA
C
§ 3
.33
8(b
).
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. T
TC
§
15
1.4
26
(a),
(c)
.
No
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s (o
ther
than
lice
nse
d s
ell-
ers)
to
ob
tain
. 34
TAC
§ 3
.32
5.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Sern
a v
. H.E
. Bu
tt
Gro
cery
Co.
, 21
S.W
.3d
330
(Te
x.
Ap
p.—
San
An
to-
nio
199
9); T
.T.C
. §
11
2.0
55
.
No
cu
rren
t
con
tin
gen
t fe
e
aud
itin
g. S
tate
use
s
pri
vate
-co
ntr
act
aud
itin
g o
n a
n
ho
url
y b
asis
.
59
UTA
H
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
7%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
use
d f
acili
ty in
th
e m
fg. p
roce
ss t
o m
an-
ufa
ctu
re T
PP
fo
r sa
le w
ith
gre
ater
th
an a
3-ye
ar li
fe. U
AC
r.8
65
-19
S-8
5; U
C §
59
-12
-
10
4(1
4).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
raw
mat
eria
ls t
hat
bec
om
e an
ingr
edie
nt
or
com
po
nen
t p
art
of
a m
anu
fact
ure
d p
rod
-
uct
. U
C §
59
-12
-10
4(2
5).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t. U
C
§ 5
9-1
2-1
04
(61
). B
oth
ser
vice
s ta
xed
at
con
sum
er le
vel.
UC
§ 5
9-1
2-1
03
(1)(
b).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le. U
C §
§
59
-12
-10
4(6
1),
-10
2(1
29
). S
ervi
ces
are
tax
ed a
t co
nsu
mer
leve
l. U
C §
§ 5
9-2
6-
10
3(2
)(a
), -1
04
.5(1
).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. Ele
ctri
city
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed, w
/
resi
den
tial
use
tax
ed a
t a
low
er r
ate.
UC
§§ 5
9-1
2-1
03
(1)(
c), (
d).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
UA
C
r.86
5-1
9S-
23
. Sel
lers
allo
wed
at le
ast
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. U
C §
59
-12
-10
6(3
).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: 1.
31%
of
tax
du
e p
er m
on
th. U
C §
59
-12
-
10
8(2
)(c)
.
Dir
ect
pay
lim
ited
to
app
lican
ts w
ho
pu
rch
ase
>
$1.5
M p
er y
ear
of
item
s fo
r
3 ye
ars.
UC
§ 5
9-1
2-1
07
.1.
374
loca
l tax
juri
sdic
-
tio
ns
(rat
io o
f 7,
390)
.
Cen
tral
ad
min
. of
the
loca
l tax
es. U
C §
§
59
-12
-11
8(1
), -2
02
,
-40
3(4
), -7
03
(4).
Loca
ls u
se t
he
sam
e
tax
bas
e as
th
e st
ate.
UC
§§ 5
9-1
2-2
04
(6),
-40
1, -
70
3(1
)(a
).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
UC
§ 5
9-1
2-
10
3(1
)(m
).
Tax
gen
eral
ly im
po
sed
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
UC
§ 5
9-1
2-1
02
(11
3);
Uta
h P
.L.R
. No.
10
-01
1
(2/1
2).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
UT
C g
uid
-
ance
. UC
§§ 5
9-1
2-
12
5, -
21
6, -
40
6, -
70
7,
-80
8, -
11
04
, -1
30
4,
-14
05
.
No
ad
van
ce p
aym
ents
.
Cre
dit
no
t lim
ited
to
use
tax
. U
C §
59
-12
-
10
4(2
6).
Fu
ll cr
edit
fo
r
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. U
C §
59
-12
-
10
4(2
6).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. U
C §
59
-12
-
10
4(2
6).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
UC
§ 5
9-1
2-1
07
(10
)(e)
.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. h
ttp:/
/
tax.
uta
h.g
ov/
sale
s/sa
les-
tax-
re-
fun
d-r
e-
qu
est#
wh
oca
n-
subm
it.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
UC
§ 2
6-
20
-1 e
t se
q.
Cla
ss a
ctio
n s
uit
s
allo
wed
wit
h
limit
atio
ns.
UC
§
59
-1-3
04
.; B
luth
v. U
tah
Sta
te T
ax
Com
mn
., 54
P.3
d
1147
(U
tah
200
2).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
TE
XA
S
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 5
3%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
dir
ectl
y u
sed
or
con
sum
ed in
or
du
rin
g
the
actu
al m
fg. a
nd
dir
ectl
y m
akes
or
cau
ses
a p
hys
ical
or
chem
ical
ch
ange
. TTC
§ 1
51
.31
8(a
),(b
).
Mfg
. in
pu
ts e
xem
pti
on
allo
wed
fo
r TP
P
sold
an
d T
PP
use
d o
r co
nsu
med
du
rin
g
actu
al m
fg. a
nd
th
at d
irec
tly
mak
es o
r
cau
ses
a p
hys
ical
or
chem
ical
ch
ange
. TTC
§§ 1
51
.31
8(a
)(1
), (
2),
15
1.3
18
(b).
Wir
ed a
nd
wir
eles
s eq
uip
.: p
arti
ally
tax
able
. TTC
§ 1
51
.31
86
. Bo
th s
ervi
ces
are
tax
ed o
n c
on
sum
er le
vel.
TTC
§
15
1.0
10
1(a
)(6
); 3
4 T
AC
§ 3
.34
4(b
).
Cab
le e
qu
ip.:
par
tial
ly t
axab
le. T
TC
§
15
1.3
18
6(d
). S
ervi
ces
are
tax
ed a
t co
n-
sum
er le
vel.
TTC
§§ 1
51
.01
01
(a)(
6),
(a
)
(2);
34
TA
C §
§ 3
.34
4(b
), 3
.31
3.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
TTC
§ 1
51
.31
7. C
om
mer
cial
ser
vice
s
are
tax
ed a
t th
e co
nsu
mer
leve
l. TTC
§§
15
1.0
10
1(a
)(1
7),
15
1.3
17
.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
TTC
§ 1
51
.05
4(b
); s
elle
rs
allo
wed
on
ly 6
0 d
ays
to
ob
tain
val
id c
erts
. on
au
dit
.
TTC
§ 1
51
.05
4(e
).
MT
C e
xem
pti
on
cer
ts. m
ay
be
use
d.
Val
id s
ales
tax
per
mit
nu
mb
ers
req
uir
ed o
n r
esal
e
cert
s.
Ven
do
r co
mp
.: 0.
5% o
f ta
x
du
e o
n a
tim
ely
retu
rn. T
TC
§ 1
51
.42
3. A
dd
itio
nal
1.2
5%
on
pre
pay
men
t am
ou
nt.
TTC
§ 1
51
.42
4.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts p
urc
has
ing
at le
ast
$800
,000
per
yea
r. TTC
§
15
1.4
17
(b).
TAC
§3
.28
8(b
)
(1).
1,65
3 lo
cal t
ax
juri
sdic
tio
ns
(rat
io o
f
15,2
12).
Cen
tral
ad
min
. of
the
loca
l tax
es. T
TC
§§ 3
23
.30
1. L
oca
ls
gen
eral
ly u
se t
he
sam
e
tax
bas
e as
th
e st
ate,
w/e
xce
pti
on
s. TTC
§§
32
1.2
07
, 32
1.2
08
,
32
3.2
07
.
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s n
or
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/ww
w.c
om
ptr
ol-
ler.t
exa
s.go
v/ta
xes/
file
-pay/
edi/
sale
s-ta
x-
rate
s.ph
p.
No
t a
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts
via
tax
on
info
rmat
ion
ser
vice
s.
TTC
§§ 1
51
.01
0,
15
1.0
09
, 15
1.0
10
1(a
)
(10
).
Tax
imp
ose
d w
/
ou
t cl
ear
stat
uto
ry
auth
ori
ty o
n a
per
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. T
exa
s C
om
p-
troller
’s L
ette
r N
o.
20
08
05
09
5L.
No
tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
r-
chas
ers
rely
ing
on
TX
Co
mp
tro
ller
guid
ance
.
Excl
ud
ing
volu
nta
ry
pre
pay
men
ts, n
o a
d-
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. TTC
§ 1
51
.30
3(c
);
34
TA
C §
3.6
1. F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
. 34
TAC
§ 3
.33
8(b
).
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. 34
TA
C
§ 3
.33
8(b
).
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
bel
cred
it c
ard
s. T
TC
§
15
1.4
26
(a),
(c)
.
No
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s (o
ther
than
lice
nse
d s
ell-
ers)
to
ob
tain
. 34
TAC
§ 3
.32
5.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Sern
a v
. H.E
. Bu
tt
Gro
cery
Co.
, 21
S.W
.3d
330
(Te
x.
Ap
p.—
San
An
to-
nio
199
9); T
.T.C
. §
11
2.0
55
.
No
cu
rren
t
con
tin
gen
t fe
e
aud
itin
g. S
tate
use
s
pri
vate
-co
ntr
act
aud
itin
g o
n a
n
ho
url
y b
asis
.
60
VE
RM
ON
T
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 5
1%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
use
d o
r co
nsu
med
, dir
ectl
y an
d e
xcl
usi
ve-
ly, i
n m
fg. T
PP
fo
r sa
le o
r in
th
e m
anu
fac-
ture
of
oth
er m
ach
iner
y o
r eq
uip
., p
arts
,
or
sup
plie
s fo
r u
se in
th
e m
fg. p
roce
ss. 3
2
VSA
§ 9
74
1(1
4);
VC
R 1
.97
41
(14
)-4
.
Mfg
. in
pu
ts e
xem
pti
on
ap
plie
s to
TP
P t
hat
bec
om
es a
n in
gred
ien
t o
r co
mp
on
ent
par
t o
f, o
r th
at is
co
nsu
med
in m
fg. T
PP
for
sale
. Sa
les
of
fuel
s u
sed
dir
ectl
y o
r in
-
dir
ectl
y in
mfg
. are
als
o e
xem
pt.
32
VSA
§
97
41
(14
); V
CR
1.9
74
1(1
4)-
3, 1
.97
41
(34
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. B
oth
serv
ices
are
tax
ed a
t co
nsu
mer
leve
l.
32
VSA
§§ 9
70
1(9
)(H
), (
19
), 9
77
1(5
),
97
73
; VC
R 1
.97
71
(5)-
1.
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
32
VSA
§ 9
77
1(4
); V
CR
1.9
77
1(4
)-1
.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
Form
al R
uli
ng
12
-5, n
. 1(1
/30
/20
12
),
32
VSA
§§ 9
70
1(7
), 9
74
1(4
6).
Ele
ctri
city
and
gas
gen
eral
ly t
axed
to
co
mm
erci
al
use
rs, w
ith
mfg
. an
d a
gric
ult
ure
ex
emp
-
tio
ns.
32
VSA
§§ 9
70
1(7
), 9
74
1(2
6),
(27
), (
34
), 9
77
1(1
); V
CR
1.9
74
1(2
6)-
1,
(27
)-1
, (3
4)-
1.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
32
VSA
§ 9
74
5(a
); V
CR
1.9
74
5-
1; s
elle
rs a
llow
ed 1
20 d
ays
to o
bta
in v
alid
cer
ts. o
n
aud
it. V
CR
1.9
74
5-1
(C).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
. VC
R
1.9
74
5-1
(C).
Selle
rs n
ot
req
uir
ed t
o v
erif
y
exem
pti
on
acc
ou
nt
nu
m-
ber
s. F
orm
S-3
(0
9/1
3).
No
ven
do
r co
mp
.
Dir
ect
pay
per
mit
s p
rovi
ded
at t
he
Co
mm
issi
on
er’s
dis
-
cret
ion
. 32
VSA
§ 9
74
5(b
);
VC
R 1
.97
45
.2(B
).
33 lo
cal j
uri
sdic
tio
ns
(rat
io o
f 18
,962
). 2
4
VSA
§ 1
38
(a),
(b).
Cen
tral
ad
min
. of
the
loca
l tax
es. 2
4 V
SA §
13
8(c
). Lo
cals
use
th
e
sam
e ta
x b
ase
as t
he
stat
e. I
d.
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e b
ut
do
es
no
t h
ave
his
tori
cal
rate
s.
htt
p:/
/ta
x.ve
rmon
t.
gov/
bu
sin
ess-
an
d-
corp
/sa
les-
an
d-u
se-
tax.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n “
spec
-
ified
dig
ital
pro
du
cts.”
32
VSA
§§ 9
70
1(4
6),
97
71
(8).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Act
51
, 20
15
Vt.
S. 1
38
,
§ G
.8 (
eff.
7/1
/20
15
);
Ver
mon
t D
epa
rtm
ent
of Ta
xes,
Fa
ct S
hee
t
FS-1
08
4 (
08
/20
15
); 3
2
VSA
§ 9
70
1(1
9)(
I).
Tax
liab
ility
rel
ief
limit
ed t
o D
OT
gu
id-
ance
rel
atin
g to
loca
l
op
tio
n s
ales
tax
es. V
CR
1.1
38
(a)(
2)(
E).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. 32
VSA
§ 9
74
4(a
)
(3).
Fu
ll cr
edit
fo
r
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. 3
2 V
SA §
97
44
(a)(
3).
Stat
e ac
cele
rate
s
cert
ain
leas
e p
ay-
men
ts.
Cre
dit
s o
ther
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. 32
VSA
§ 9
74
4(a
)(3
);
Form
al R
uli
ng
00
-01
(1/5
/20
00
).
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o
pri
vate
-lab
el c
red
it
card
s32
VSA
§ 9
78
0;
VC
R 1
.97
80
(C).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. 3
2
VSA
§9
78
1, V
T
Form
62
0.
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
32
VSA
§
63
1(d
).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
61
VIR
GIN
IA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
0%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o T
PP
(in
clu
des
mac
hin
ery)
use
d d
irec
tly
in m
fg.
VC
§ 5
8.1
-60
9.3
(2)(
iii)
; 23
VA
C 1
0-2
10
-
92
0(A
)(3
).
Mfg
. in
pu
ts e
xem
pti
on
allo
wed
fo
r TP
P
(in
clu
des
fu
el)
that
is u
sed
or
con
sum
ed
in m
fg. V
C §
§ 5
8.1
-60
9.3
(2)(
i), (
ii);
23
VAC
10
-21
0-9
20
(A)(
1),
(2
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. B
oth
serv
ices
tax
ed a
t co
nsu
mer
leve
l. V
C §
58
.1-6
48
(A).
Cab
le e
qu
ip.:
exem
pt.
VC
§ 5
8.1
-60
9.6
(2).
Serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. V
C
§ 5
8.1
-64
8(A
).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. VC
§
58
.1-6
09
.3(2
)(v)
. Ele
ctri
city
an
d g
as
sold
to
co
nsu
mer
s ar
e ta
xed
. VC
§ 5
8.1
-
60
9.1
(3);
23
VA
C 1
0-2
10
-66
0.
“Go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
VC
§ 5
8.1
-62
3(A
); 2
3 V
AC
10
-
21
0-2
80
(A),
(B
); n
o r
ule
on
allo
win
g se
llers
at
leas
t 12
0
day
s to
ob
tain
val
id c
erts
. on
aud
it. F
ield
Au
dit
Gu
ide-
lin
es: C
erts
. of
Exe
mpti
on
,
pg.
4.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o
cap
ture
/ver
ify
exem
pti
on
acco
un
t n
um
ber
s.
Ven
do
r co
mp
.: V
ery
limit
ed
ven
do
r co
mp
. wh
ich
do
es
no
t ap
ply
to
sel
lers
w/>
$240
,000
in y
earl
y lia
bili
ty.
Dir
ect
pay
lim
ited
to
mfg
.,
min
e o
per
ato
rs a
nd
pu
blic
serv
ice
corp
ora
tio
ns.
VC
§
58
.1-6
24
(A).
163
loca
l tax
juri
sdic
-
tio
ns
(rat
io o
f 49
,086
).
Cen
tral
ad
min
. of
the
loca
l tax
es. V
C §
58
.1-6
03
.1. L
oca
ls u
se
the
sam
e ta
x b
ase
as
the
stat
e, e
xce
pt
foo
d
for
ho
me
con
sum
p-
tio
n is
no
t su
bje
ct t
o
loca
l tax
es. V
C §
58
.1-
60
5(B
), -6
06
(D).
Web
site
has
cu
rren
t
tax
rat
es b
ut
do
es n
ot
hav
e h
isto
rica
l tax
rate
s o
r a
bo
un
dar
y
dat
abas
e.
htt
p:/
/ww
w.ta
x.
virg
inia
.gov
/con
ten
t/
sale
s-a
nd-u
se-ta
x.
No
t a
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
VC
§
58
.1-6
09
.5(1
), -6
48
(C)
(vii
i).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Vir
gin
ia R
uli
ng
of
the
Com
mis
sion
er P
D 1
3-
23
6 (
12
/13
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
wri
tten
VD
T
guid
ance
.
Selle
rs w
ith
$2.
5M o
r
mo
re in
yea
rly
sale
s
mu
st m
ake
a Ju
ne
adva
nce
pay
men
t. V
C §
58
.1-6
15
.
Cre
dit
lim
ited
to
use
tax
. VC
§ 5
8.1
-61
1. F
ull
cred
it f
or
oth
er s
tate
s’
stat
e an
d lo
cal t
axes
.
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. 23
VAC
10
-21
0-8
40
; VC
§
58
.1-6
11
.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
VC
§ 5
8.1
-62
1.
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. R
eta
il
Sale
s a
nd U
se R
e-
fun
d P
roce
du
res
Gu
idel
ines
(7
/17
).
Fals
e cl
aim
s ac
t
excl
ud
es t
ax
clai
ms.
VC
§ 8
.01
-
21
6.3
(D).
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed.
Co
nti
nge
nt
fee
and
pri
vate
-co
n-
trac
t au
dit
ing
pro
hib
ited
. See
Cli
nch
fiel
d C
oa
l
Co.
v. R
obbin
s,
541
S.E.
2d 2
89
(Va.
200
1).
62
WA
SHIN
GT
ON
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 3
7%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o M
&E
wit
h a
use
ful l
ife
of
at le
ast
1 ye
ar a
nd
use
d d
irec
tly
in m
fg.,
R&
D, o
r te
stin
g.
RC
W 8
2.0
8.0
25
65
(1).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
pro
p-
erty
th
at b
eco
mes
an
ingr
edie
nt,
com
-
po
nen
t, o
r ch
emic
al u
sed
in p
roce
ssin
g.
Ch
emic
als
mu
st d
irec
tly
con
tact
ingr
e-
die
nts
. RC
W 8
2.0
4.0
50
(1)(
a)(
iii)
; WA
C
45
8-2
0-1
13
.
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le w
/
cert
ain
ex
emp
tio
ns.
RC
W 8
2.08
.986
. Bo
th
serv
ices
tax
ed a
t co
nsu
mer
leve
l. R
CW
82
.04
.05
0(5
).
Cab
le e
qu
ip.:
gen
eral
ly t
axab
le w
/
cert
ain
ex
emp
tio
ns.
RC
W 8
2.0
8.9
86
.
Cer
tain
cab
le s
ervi
ces
are
tax
ed a
t
con
sum
er le
vel.
RC
W 8
2.0
4.2
80
(1)(
f),
82
.04
.29
0, 8
2.0
4.2
57
, 82
.04
.19
2(1
1),
82
.08
.01
0(1
0),
82
.08
.02
08
1.
Elec
tric
an
d g
as e
qu
ip.:
gen
eral
ly t
ax-
able
, w/
exem
pti
on
s. R
CW
82
.08
.96
2,
82
.08
.96
3. E
lect
rici
ty a
nd
gas
so
ld t
o c
on
-
sum
ers
are
no
t ta
xed
. RC
W 8
2.0
8.9
50
,
82
.08
.02
6, 8
2.0
8.0
25
2.
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
RC
W
82
.08
.05
0(7
)(b);
sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. R
CW
82
.08
.05
0(7
)(b).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
.
Selle
rs n
ot
req
uir
ed t
o v
erif
y
the
exem
pti
on
acc
ou
nt
nu
mb
er.
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ith
a t
ax li
abili
ty o
f
$240
,000
fo
r th
e cu
rren
t
year
or
pu
rch
ases
of
mo
re
than
$10
M s
ub
ject
to
WA
sale
s an
d u
se t
ax. R
CW
82
.32
.08
7(2
)(a
).
375
loca
l tax
juri
sdic
-
tio
ns
(rat
io o
f 17
,932
).
Cen
tral
ad
min
. of
the
loca
l tax
es.
RC
W 8
2.1
4.0
50
(1),
82
.14
.05
0(2
). Lo
cals
use
th
e sa
me
tax
bas
e
as t
he
stat
e. R
CW
82
.14
.07
0.
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/dor.w
a.g
ov/
con
ten
t/a
bou
tus/
sta
-
tist
icsa
ndre
port
s/ti
d/
sta
tist
icsr
eport
s.a
spx-
?qu
ery=
his
tori
cal.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n
dig
ital
pro
du
cts.
RC
W
82
.04
.05
0(8
)(a
);
82
.04
.19
2; 8
2.0
8.0
20
.
Tax
gen
eral
ly im
po
sed
on
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
RC
W 8
2.0
4.0
50
(6)
(c)(
i).
No
gen
eral
tax
liab
ility
relie
f. A
vnet
, In
c. v.
Dep
’t o
f R
even
ue,
348
P.3d
127
3 (W
ash
. Ct.
Ap
p. 2
015)
.
No
ad
van
ce p
aym
ents
.
RC
W 8
2.3
2.0
45
(1).
Cre
dit
lim
ited
to
use
tax
. RC
W 8
2.1
2.0
35
.
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. R
CW
82
.12
.03
5.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts. R
CW
82
.12
.03
5.
DO
R p
osi
tio
n is
no
bad
deb
t d
edu
ctio
n a
pp
lies
to p
riva
te-la
bel
cre
dit
card
s, c
urr
entl
y b
ein
g
litig
ated
. Low
es v
. DO
R,
pen
din
g in
Co
urt
of
Ap
pea
ls, W
AC
45
8-2
0-
19
6(6
).
A p
urc
has
er w
ho
has
no
t re
ceiv
ed
a re
fun
d f
rom
th
e
selle
r m
ay f
ollo
w
the
pro
ced
ure
set
fort
h in
WA
C
45
8-2
0-2
29
(4)(
b)
to o
bta
in a
ref
un
d
fro
m D
OR
un
der
cert
ain
cir
cum
-
stan
ces.
Fals
e cl
aim
s ac
t
do
es n
ot
app
ly t
o
tax
es.
Cla
ss a
ctio
n s
uit
s
may
be
allo
wed
.
RC
W 8
2.3
2.5
25
.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
63
WE
ST V
IRG
INIA
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
4%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o s
ales
of
TP
P o
r se
rvic
es d
irec
tly
use
d o
r co
n-
sum
ed in
mfg
. WV
C §
11
-15
-9(b
)(2
).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
sal
es o
f TP
P
or
serv
ices
dir
ectl
y u
sed
or
con
sum
ed in
mfg
. WV
C §
11
-15
-9(b
)(2
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ex
emp
t, b
ut
pu
rch
aser
mu
st fi
rst
pay
tax
bef
ore
ap
-
ply
ing
for
refu
nd
wit
h T
ax C
om
mis
sio
ner
.
WV
C §
11
-15
-9(b
)(2
). B
oth
ser
vice
s n
ot
tax
ed a
t co
nsu
mer
leve
l. W
VC
§ 1
1-
15
-2(b
)(8
). H
ow
ever
, pre
pai
d w
irel
ess
serv
ices
su
bje
ct t
o t
ax. W
VC
§ 1
1-1
5-9
(b)
(13
).
Cab
le e
qu
ip.:
exem
pt.
WV
CR
§ 1
10
-
15
-9(9
.4.1
). S
ervi
ces
are
no
t ta
xed
at
con
sum
er le
vel.
WV
C §
11
-15
-8.
Elec
tric
an
d g
as e
qu
ip.:
par
tial
ly t
axab
le.
Elec
tric
ity
and
gas
so
ld t
o c
on
sum
ers
are
no
t ta
xed
. WV
C §
11
-15
-9(a
)(1
); W
VC
R
§§ 1
10
-15
-9(9
.2.1
), (
9.2
.2).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
WV
C
§ 1
1-1
5-6
. Sel
lers
allo
wed
at le
ast
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it.
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
. WV
C §
11
-15
B-2
4(a
)(3
).
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
No
ven
do
r co
mp
.
Dir
ect
pay
lim
ited
to
mfg
.,
pu
blic
uti
litie
s, t
ran
spo
rta-
tio
n, t
ran
smis
sio
n, a
nd
a f
ew
oth
er b
usi
nes
ses.
Form
CST
-25
0 (
07
/12
).
32 lo
cal t
ax ju
risd
ic-
tio
ns
(rat
io o
f 57
,906
).
Cen
tral
ad
min
. of
the
loca
l tax
es.
WV
C §
§ 7
-22
-12
(d),
-11
(d),
8-1
3C
-4(e
). Lo
-
cals
use
th
e sa
me
tax
bas
e as
th
e st
ate.
WV
C
§§ 8
-13
C-4
(c)(
1).
Web
site
has
cu
r-
ren
t ta
x r
ates
an
d a
bo
un
dar
y d
atab
ase
bu
t d
oes
no
t h
ave
his
tori
cal r
ates
. htt
p:/
/
tax.
wv.
gov/
Bu
sin
ess/
Sale
sAn
dU
seTa
x/Lo
-
calS
ale
sAn
dU
seTa
x/
Page
s/Lo
calS
ale
sAn
-
dU
seTa
x.a
spx.
Full
SSU
TA m
emb
er.
No
tax
imp
ose
d o
n
dig
ital
pro
du
cts.
Wes
t
Vir
gin
ia S
tate
Ta
x-
abil
ity
Ma
trix
ver
sion
20
15
.2.
No
tax
imp
ose
d
on
per
son
mer
ely
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
WV
C §
11
-15
-9(a
)(2
1)
(B);
WV
CR
§ 1
10
-15
-
76
.1.2
.
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
T
guid
ance
. WV
C §
11
-15
B-3
6(a
).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. WV
C §
11
-15
A-1
0a
(a).
Cre
dit
no
w p
rovi
ded
fo
r
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es. W
VC
§
11
-15
A-1
0a
(a);
Ma
t-
kovi
ch v
. CSX
Tra
ns-
port
ati
on
In
c. 2
38 W
.
Va.
238
, 793
S.E
. 2d
888
(201
6).
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’
tax
on
acc
el. l
ease
pay
men
ts. W
VC
§
11
-15
A-1
0a
(a);
WV
CR
§§ 1
10
-15
-43
.1, -
12
9.1
,
-12
9.7
.3.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
WV
C §
11
-15
B-2
7(c
).
No
wri
tten
pro
-
cess
allo
win
g p
ur-
chas
ers
to o
bta
in
refu
nd
s fr
om
th
e
stat
e w
/ou
t go
ing
thro
ugh
th
e se
ller.
No
fal
se c
laim
s
act.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
64
WIS
CO
NSI
N
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 4
2%.
Mfg
. eq
uip
. ex
emp
tio
n c
ove
rs M
&E
use
d
excl
usi
vely
an
d d
irec
tly
by
a m
fg. i
n m
fg.
WS
§§ 7
7.5
4(2
), (
2m
), (
30
)(a
)(6
).
Mfg
. in
pu
ts e
xem
pti
on
co
vers
raw
mat
eri-
als
that
bec
om
e an
ingr
edie
nt,
com
po
nen
t
par
t, o
r is
co
nsu
med
or
des
tro
yed
. WS
§
77
.54
(2).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. W
S §
77
.54
(46
m).
Bo
th s
ervi
ces
tax
ed a
t co
n-
sum
er le
vel.
WS
§ 7
7.5
2(2
)(a
)(5
)(a
m).
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e ta
xed
at c
on
sum
er le
vel.
WS
§ 7
7.5
2(2
)(a
)(1
2).
Elec
tric
an
d g
as e
qu
ip.:
gen
eral
ly t
axab
le,
w/
mfg
. ex
emp
tio
n. E
lect
rici
ty a
nd
gas
sold
to
co
nsu
mer
s ar
e su
bje
ct t
o t
ax,w
/
exce
pti
on
s. W
S §§ 7
7.5
1(2
0).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts.
WA
C
§ T
ax
11
.14
(4)(
b).
Sel
lers
allo
wed
120
day
s to
ob
tain
valid
cer
ts. o
n a
ud
it. W
AC
§
Tax
11
.14
(4)(
b).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed
. WA
C §
§
Tax
11
.14
(2)(
a)(
3),
(b).
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 0.
5% o
f
liab
ility
(ca
pp
ed a
t $1
,000
per
rep
ort
ing
per
iod
). W
S §
77
.61
(4)(
c).
Dir
ect
pay
allo
wed
wh
en
“en
ou
gh p
urc
has
es a
re
tax
able
… t
o ju
stif
y th
e
exp
ense
of
regu
lar
aud
its
by
the
dep
artm
ent”
. WS
§
77
.52
(17
m)(
b)(
3).
70 lo
cal t
ax ju
risd
ic-
tio
ns
(rat
io o
f 81
,243
).
Cen
tral
ad
min
. of
the
tax
es. W
S § 7
7.7
6(1
).
Loca
ls g
ener
ally
use
s
the
sam
e ta
x b
ase
as t
he
stat
e. W
S §§
77
.71
(1),
(4
).
Web
site
has
cu
rren
t
tax
rat
es a
nd
a b
ou
nd
-
ary
dat
abas
e b
ut
do
es
no
t h
ave
his
tori
cal
rate
s. h
ttps:
//w
ww
.
reve
nu
e.w
i.go
v/fa
qs/
pcs
/ta
xra
tes.
htm
l#tx
-
rate
2.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n
dig
ital
pro
du
cts.
WS
§
77
.52
(1)(
d).
Gen
eral
ly, n
o t
ax
imp
ose
d o
n a
per
son
mer
ely
acce
ssin
g
pre
-wri
tten
co
mp
ute
r
soft
war
e. W
is. D
ept.
of
Rev
., Sa
les
an
d
Use
Ta
x Tr
eatm
ent
Com
pu
ter
- Ha
rdw
are
,
Soft
wa
re, S
ervi
ces
(5)
(A)
(eff. 1
0/0
9).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
aser
s
rely
ing
on
DO
R g
uid
-
ance
. WS
§ 7
7.5
9(9
n)
(a),
(b).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. WS
§ 7
7.5
3(1
6).
Full
cred
it f
or
oth
er
stat
es’ s
tate
an
d lo
cal
tax
es. W
isco
nsi
n D
ept.
Rev
. Ta
x B
ullet
in N
o.
15
7 (
7/0
8).
No
acc
el. l
ease
pay
-
men
ts. C
red
its
oth
er
stat
es’ t
ax o
n a
ccel
.
leas
e p
aym
ents
. WS
§
77
.58
5(2
).
Bad
deb
t d
edu
ctio
n
app
lies
to p
riva
te-la
-
bel
cre
dit
car
ds.
WS
§
77
.58
5(1
).
Pu
rch
aser
s ca
n
ob
tain
ref
un
ds
fro
m t
he
stat
e w
/
ou
t go
ing
thro
ugh
the
selle
r. W
S §
77
.59
(4)(
a).
No
fal
se c
laim
s
act.
Cla
ss a
ctio
n s
uit
s
no
t al
low
ed. W
S §
80
3.0
8(1
).
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
65
WY
OM
ING
EX
EM
PT
ION
FO
R
BU
SIN
ESS
IN
PU
TS
SALE
S TA
X
AD
MIN
IST
RA
TIO
NLO
CA
L SA
LES
TA
X A
DM
IN.
SIM
PLI
FIC
AT
ION
&
TR
AN
SPA
RE
NC
YFA
IR T
AX
PA
YM
EN
T A
DM
IN.
FAIR
AU
DIT
/R
EFU
ND
P
RO
CE
DU
RE
S
OT
HE
R
ISSU
ES
B2B
sal
es t
ax: 5
8%.
Mfg
. eq
uip
. ex
emp
tio
n li
mit
ed t
o m
ach
in-
ery
use
d d
irec
tly
and
pre
do
min
antl
y in
mfg
. WS
§§ 3
9-1
5-1
05
(a)(
viii
)(O
), 3
9-1
6-
10
5(a
)(vi
ii)(
D).
Mfg
. in
pu
ts e
xem
pti
on
lim
ited
to
ingr
e-
die
nts
an
d c
om
po
nen
ts o
f TP
P b
ein
g
man
ufa
ctu
red
. WS
§§ 3
9-1
5-1
05
(a)(
iii)
(A),
39
-16
-10
5(a
)(ii
i)(A
).
Wir
ed a
nd
wir
eles
s eq
uip
.: ta
xab
le. B
oth
serv
ices
are
tax
ed a
t co
nsu
mer
leve
l. W
S
§ 3
9-1
5-1
03
(a)(
i)(c
).
Cab
le e
qu
ip.:
tax
able
. Ser
vice
s ar
e n
ot
tax
ed a
t co
nsu
mer
leve
l. W
S § 3
9-1
5-
10
3(a
)(i)
(A)&
(B).
Elec
tric
an
d g
as e
qu
ip.:
tax
able
. Ele
ctri
city
and
gas
so
ld t
o c
on
sum
ers
are
tax
ed. W
S
§ 3
9-1
5-1
03
(a)(
i)(E
).
No
“go
od
fai
th”
req
. im
po
sed
wh
en a
ccep
tin
g ce
rts;
sel
l-
ers
allo
wed
120
day
s o
n t
o
ob
tain
val
id c
erts
. on
au
dit
.
WD
RR
ch
. 2 §
7(b
)(ii
i).
MT
C a
nd
SSU
TA e
xem
pti
on
cert
s. m
ay b
e u
sed.
Selle
rs n
ot
req
uir
ed t
o
veri
fy e
xem
pti
on
acc
ou
nt
nu
mb
ers.
Ven
do
r co
mp
.: 1.
95%
of
the
firs
t $6
,250
an
d 1
% o
f th
e
rem
ain
der
(ca
pp
ed a
t $5
00
per
mo
nth
). W
S § 3
9-1
5-
10
7(b
)(xi
).
Dir
ect
pay
lim
ited
to
ap
pli-
can
ts w
ho
mak
e ta
xab
le
pu
rch
ases
in t
he
stat
e to
tal-
ing
> $
5M p
er y
ear.
WD
RR
ch. 2
§ 6
(a).
23 lo
cal t
ax ju
risd
ic-
tio
ns
(rat
io o
f 24
,505
).
Cen
tral
ad
min
. of
the
loca
l tax
es. W
S §§
39
-15
-20
2(a
), (
c),
39
-16
-20
3(a
). Lo
cals
use
th
e sa
me
tax
bas
e
as t
he
stat
e. W
S §§ 3
9-
15
-10
3, -
10
5, -
20
2(a
),
-20
3(a
)(i)
(E),
-20
5,
39
-16
-10
3, -
20
3(a
)
(i)(
E).
Web
site
has
cu
rren
t
and
his
tori
cal t
ax
rate
s, a
nd
a b
ou
nd
ary
dat
abas
e.
htt
p:/
/rev
enu
e.w
yo.
gov/
Exc
ise-
Tax-
Div
i-
sion
/sa
les-
use
-ta
x-
rate
s.
Full
SSU
TA m
emb
er.
Tax
imp
ose
d o
n d
igit
al
pro
du
cts.
WS
§ 3
9-1
5-
10
3(a
)(i)
(P).
No
tax
imp
ose
d o
n
a p
erso
n m
erel
y
acce
ssin
g p
re-w
ritt
en
com
pu
ter
soft
war
e.
Wyo
min
g Sa
les
an
d
Use
Ta
x P
ubli
cati
on
-
Com
pu
ter
Sale
s a
nd
Serv
ices
(re
v. 8
/14
).
Tax
liab
ility
rel
ief
for
selle
rs a
nd
pu
rch
as-
ers
rely
ing
on
DO
R
guid
ance
. WS
§ 3
9-1
5-
10
4(g
).
No
ad
van
ce p
aym
ents
.
Cre
dit
lim
ited
to
use
tax
. WS
§ 3
9-1
6-1
09
(d)
(iii
). Fu
ll cr
edit
fo
r
oth
er s
tate
s’ s
tate
an
d
loca
l tax
es.
No
acc
el. l
ease
pay
men
ts. N
o c
red
it
agai
nst
oth
er s
tate
s’ t
ax
on
acc
el. l
ease
pay
-
men
ts.
Bad
deb
t d
edu
ctio
n
do
es n
ot
app
ly t
o p
ri-
vate
-lab
el c
red
it c
ard
s.
WS
§ 3
9-1
5-1
07
(a)(
x).
No
wri
tten
pro
cess
allo
win
g
pu
rch
aser
s to
ob
-
tain
ref
un
ds
fro
m
the
stat
e w
/ou
t
goin
g th
rou
gh t
he
selle
r. W
DR
R c
h. 2
§ 8
(b).
No
fal
se c
laim
s
act.
No
kn
ow
n u
se o
f
clas
s ac
tio
n s
uit
s.
No
cu
rren
t
con
tin
gen
t fe
e o
r
pri
vate
-co
ntr
act
aud
itin
g.
66
The Council On State Taxation (COST) is a nonprofit trade association consisting of approximately 550 multistate corporations engaged in interstate
and international business. COST’s objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.
©2018 Council On State Taxation122 C Street, NW, Suite 330, Washington, DC 20001
Phone: (202) 484-5222 • Fax: (202) 484-5229 • www.cost.org