News & Views
April 12, 1999
NORTH CAROLINA BECOMES 36TH STATE TO ACCEPT MULTIJURISDICTIONAL CERTIFICATE;
NEW MEXICO REVISES ACCEPTANCE STATEMENT
TO: State Tax Administrators, Alternates, Audit & Uniformity Committees and State Tax Press
The State of North Carolina, an MTC Associate Member State, recently approved the use of the Sales and Use Tax Certificate-Multijurisdiction for appropriate sales for resale. Now, thirty-six States accept the Certificate for sales of tangible personal property or services or both. The acceptance of the Certificate by an overwhelming majority of sales tax States represents a successful simplification initiative by the States.
North Carolina's addition to the certificate will be accompanied by a note clarifying the circumstances under which the Certificate will not be considered valid for North Carolina purposes. The new note reads as follows:
This Certificate is not valid as an exemption certificate or if signed by a person such as a contractor who intends to use the property. Its use is subject to G.S. 105-164.28 and any administrative rules or directives pertaining to resale certificates.
The Certificate also has been revised to reflect New Mexico's recent amendment of its regulation 3 NMAC 184.108.40.206 modifying the State's conditional acceptance of the Certificate as a nontaxable transaction certificate. The revised note provides:
For transactions occurring on or after July 1, 1998, New Mexico will accept this certificate in lieu of a New Mexico nontaxable transaction certificate and as evidence of the deductibility of a sale of tangible personal property provided:
a) this certificate was not issued by the State of New Mexico;
b) the buyer is not required to be registered in New Mexico; and
c) the buyer is purchasing tangible personal property for resale or incorporation as an ingredient or component part into a manufactured product.
A copy of the revised multijurisdictional resale certificate is available here.