Resale Exemption Certificates (Rescinded May 30, 2003)

AUTHORITY: section 144.270, RSMo 1994. S.T. regulation 210-1 was last filed Dec. 31, 1975, effective Jan. 10, 1976. Refiled March 30, 1976. Amended: Filed Aug. 13, 1980, effective Jan. 1, 1981. Amended: Filed Sept. 7, 1984, effective Jan. 12, 1985. Amended: Filed July 20, 1987, effective Oct. 25, 1987. Amended: Filed Aug. 2, 1988, effective Jan. 13, 1989. Rescinded: Filed Nov. 15, 2002, effective May 30, 2003. Op. Atty. Gen. No. 13, Burke (4-11-50). Persons engaged in business who do not have resale certificates with respect to certain transactions may offer evidence that such sales were not sales at retail. House of Lloyd, Inc. v. Department of Revenue, Case Nos. RS80-0053 and RS-80-0054 (A.H.C. 7/8/82). The Department of Revenue assessed the taxpayers for Missouri sales and use taxes for supplies purchased for their businesses under improper resale exemption certificates. The commission held that the waiver of the statute of limitations executed by the taxpayer’s bookkeeper was invalid because the bookkeeper-auditor lacked actual authority. The Department of Revenue failed to meet its burden of proof on the issue of the waiver’s validity by failing to show that the department’s auditor had attempted to ascertain if petitioner’s agent was acting within the scope of his authority before the bookkeeper-auditor signed the waiver of the statute of limitations. Churchill Truck Lines, Inc. v. Director of Revenue, Case No. RS-85-0733 (A.H.C. 5/28/87). Taxpayer is a truck line, and objected to a sales tax assessment based upon sales of salvage freight and a use tax assessment based on the purchase of an airplane. The Administrative Hearing Commission found for the Department of Revenue on both issues. On the salvage issue, the commission found that the taxpayer failed to prove that resale exemption certificates were received on the purchase from the purchaser of the salvage. H. Matt Dillon, d/b/a Midwest Home Satellite Systems v. Director of Revenue, Case No. RS-85-1741 (A.H.C. 12/9/88). The Administrative Hearing Commission found that sellers must obtain signatures on each individual invoice or written acknowledgement that a purchase is being made under an exemption certificate or letter if the certificate is not presented anew for each transaction; auctioneers acting for undisclosed principals are subject to sales tax as the seller of tangible personal property; and that auctioneers acting for disclosed principals must maintain satisfactory evidence of that fact.