Certificates For Resale And Other Exemption Claims

Sections 63-3612, 63-3621, 63-3622, 63-3622A - 63-3622WW, 63-3624, Idaho Code 01. In General. This section applies to proper documentation for exempt purchases of tangible Formula: NxR   R – 2 ------------------------- IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 128 Page 73 personal property for resale and all other exemption claims for taxable transactions enumerated in Idaho Code. (7-1-26) 02. Burden of Proof. All sales made within Idaho are presumed to be taxable unless the seller obtains from the buyer a properly executed resale or exemption certificate. If the seller doesn’t have an exemption certificate on file, the seller will have the burden of proving that a sale isn’t taxable. The seller may overcome the presumption by establishing the facts of the exemption. If the seller obtains a properly executed certificate from the buyer, the seller need not collect sales or use taxes. (7-1-26) 03. Tax Exemption Statements. In lieu of an exemption form, when selling property that the buyer claims is entitled to the exemptions listed below, seller may stamp or imprint on the face of their sales invoices, or buyers may stamp or imprint on the face of their purchase orders, a statement containing identifying information as stated in Idaho Code, as well as the language prescribed in this section. (7-1-26) a. This statement is to include the following identifying information: buyer’s name, buyer’s address, a federal Employer Identification Number (EIN) or driver’s license number and state of issue. Depending on the exemption claimed, the following language is to be used: (7-1-26) i. Production or Logging Exemption. (7-1-26) (1) The invoice, receipt, or stamp will show the purchaser’s name, business name, address, federal employer identification number or driver’s license number with state of issue, signature, date, and the reason for the claimed exemption. (7-1-26) (2) Having the seller stamp or imprint the following statement on the face of their purchase orders, a certificate containing the following language: (3-31-22) I certify that the property which I have here purchased will be used by me directly and primarily in the process of producing tangible personal property by mining, logging, manufacturing, processing, fabricating, or farming, or as a repair part for equipment used primarily as described above. (3-31-22) ii. Matter Used to Produce Heat by Burning. A tax exemption statement can be used when selling materials that the buyer claims will be used to produce heat by burning as defined in Section 088 and for which no bulk delivery is made. (7-1-26) (1) The invoice, receipt, or stamp will show the purchaser’s name, business name, address, federal employer identification number or driver’s license number with state of issue, signature, date, and the reason for the claimed exemption. (7-1-26) (2) Having the buyer stamp or imprint on the face of their purchase order, a statement that contains the following language: (3-31-22) I certify that the fuel purchased will be used in a device for the purpose of domestic home use or heating an enclosed space, dwelling, or building. Any person who signs this statement with the intention of evading payment of tax is responsible for tax due, interest and penalty. NATURE OF BUSINESS BUYER’S SIGNATURE IDAHO ADMINISTRATIVE CODE IDAPA 35.01.02 State Tax Commission Idaho Sales & Use Tax Administrative Rules Section 129 Page 74 BUYER’S SIGNATURE (7-1-26) 04. Timely Acceptance of Certificates. With the exception of Forms ST-104HM and ST-104G which is to be provided at the time of sale. (7-1-26) a. Certificates obtained by a seller at a time subsequent to, but not within a reasonable time after, the time of sale will be considered by the Tax Commission in conjunction with all other evidence available to determine whether or not the seller has established that a sales tax transaction is exempt from tax. (7-1-26) b. When the Tax Commission issues a Notice of Deficiency Determination to a seller, the seller may petition for redetermination as provided by IDAPA 35.02.01.320 - 328. They may submit certificates obtained from their customers as evidence of exemption claims, but only if the certificates are presented to the Tax Commission within ninety (90) days of the date of the Notice of Deficiency Determination. (7-1-26) 05. Examples. Available at Sales and Use Tax Rules Examples. (7-1-26)