96-166
Response November 6, 1996
Request
September 10, 1996
Utah State Tax Commission
ATTN: XXXXX
210 N 1950 W
Salt Lake City, UT 84134
Subject: Proposed Rule R865-19S-23. Exemption Certificates.
Dear XXXXX:
Realizing that the period for comments to the above matter
has been closed, I would request clarification on the following: In those incidences where a proper form 721
was not acquired, yet the sale is clearly exempt, must we be sure that the
purchasing entity is licenced?
The Tax Bulletin 6-96 indicates on page 2 under
Changes to Sales Tax Exemption Certificates that the Commission will issue
license numbers to state and local government entities and they are to provide
this number to a vendor on the new exemption certificate. The proposed rule indicates that the vendor
may retain a copy of the purchase order, check, or voucher in place of the
certificate as evidence of exemption, but does not indicate that the
documentation is to reference the licence number or even to ask if they are
licenced pursuant to the bulletin. This
then lends to the question if the Commission has changed its position on
issuing the licenses?
thank you for your help in clarifying this issue.
Respectfully,
XXXXX
XXXXX
Advisory opinion - Exemption certificates.
Dear XXXXX
We
have received your inquiry concerning exemption numbers issued to state and
local govern ment entities. If an state
or local entity issues a vendor an exemption certificate, it must include the entity’s
exemption number. We also accept, as an
alternative to the exemption certificate, a copy of the check issued on the
entity’s account or a voucher or purchase order issued by the entity on its own form. The exemption number is not required on these alternative forms.
The
purpose of any of these documents is to verify to the vendor that payment is
made directly by the tax exempt entity.
You may accept any of these forms as evidence of exempt status. Retain a copy of the check, purchase order
or voucher in your tax record just as you would retain an exemption
certificate.
For
the Commission,
Joe
B. Pacheco,
Commissioner