News & Views
February 17, 1998
CONNECTICUT JOINS MTC UNIFORM EXEMPTION CERTIFICATE;
Kansas, South Carolina, Vermont, and Wisconsin Also Relax Limitations on Acceptance
TO: State Tax Practitioners, Corporate Tax Managers, and Interested State Officials
Connecticut recently became the 32nd State to indicate its acceptance of the Multistate Tax Commission's "Uniform Sales and Use Tax Certificate--Multijurisdiction" as a valid resale certificate under its laws and regulations. (The conditions governing Connecticut's acceptance are stated on the Certificate). As a result of Connecticut's action, 32 of the 45 States with sales taxes now accept the certificate under certain conditions. Last August, in response to an initiative of the Tax Executives Institute, the Commission modified the certificate to permit its use to claim a resale exemption for the purchase of services for resale. A new version of the certificate adding Connecticut is dated 1/12/98; it replaces the version dated 8/1/97. An electronic copy of the current version of the Certificate is posted in Adobe Acrobat format on the Commission's World Wide Web site here. A free hard copy, which may be reproduced, may also be requested from the MTC Publications Coordinator at 202-624-8699. The Certificate is intended to be self-explanatory and lists the States that have indicated to the Commission their acceptance of it, together with any conditions on such acceptance. After the Certificate is reviewed, questions concerning it may be directed to MTC Counsel René Blocker at 202-624-8699.
The new version of the Certificate also includes changes to the conditions governing the acceptance of the form in Kansas, South Carolina, Vermont, and Wisconsin. Kansas has removed in its entirety the footnote regarding the scope of the duties that vendors must exercise in order to accept the Certificate in good faith; South Carolina and Vermont have clarified that the Certificate may, in fact, be used in those States to claim a resale exemption for the sale of services for resale. Wisconsin slightly modified language contained in a footnote, removing language indicating that to claim a resale exemption, the product must be resold in the same form as purchased.
The Multistate Tax Commission is continuing to work with the Tax Executives Institute to encourage the remaining States not accepting the Uniform Exemption Certificate to begin doing so. It invites these States to study the Uniform Certificate and consider whether their existing laws and regulations would permit its acceptance or consider possible modification of those laws.