Text: HSB00740 Text: HSB00742 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.47, Code Supplement 1995, is
1 2 amended by adding the following new subsection:
1 3 NEW SUBSECTION. 5. a. The department shall issue or the
1 4 seller may separately provide exemption certificates in the
1 5 form prescribed by the director to assist retailers in
1 6 properly accounting for nontaxable sales of tangible personal
1 7 property or services to state and county fairs for their own
1 8 use.
1 9 b. The sales tax liability for all sales of tangible
1 10 personal property and all sales of services is upon the seller
1 11 and the purchaser unless the seller takes in good faith from
1 12 the purchaser a valid exemption certificate stating under
1 13 penalties for perjury that the purchase is for the use of a
1 14 state or county fair and is not a purchase for resale or for
1 15 processing or unless the seller takes a fuel exemption
1 16 certificate pursuant to subsection 4. If the tangible
1 17 personal property or services are purchased tax free pursuant
1 18 to a valid exemption certificate which is taken in good faith
1 19 by the seller, and the tangible personal property or services
1 20 are used or disposed of by the purchaser in a nonexempt
1 21 manner, the purchaser is solely liable for the taxes and shall
1 22 remit the taxes directly to the department and sections
1 23 422.50, 422.51, 422.52, 422.54, 422.55, 422.56, 422.57,
1 24 422.58, and 422.59 shall apply to the purchaser.
1 25 c. A valid exemption certificate is an exemption
1 26 certificate which is complete and correct according to the
1 27 requirements of the director.
1 28 d. A valid exemption certificate is taken in good faith by
1 29 the seller when the seller has exercised that caution and
1 30 diligence which honest persons of ordinary prudence would
1 31 exercise in handling their own business affairs, and includes
1 32 an honesty of intention and freedom from knowledge of
1 33 circumstances which ought to put one upon inquiry as to the
1 34 facts. In order for a seller to take a valid exemption
1 35 certificate in good faith, the seller must exercise reasonable
2 1 prudence to determine the facts supporting the valid exemption
2 2 certificate, and if any facts upon such certificate would lead
2 3 a reasonable person to further inquiry, then such inquiry must
2 4 be made with an honest intent to discover the facts.
2 5 e. If the circumstances change and the tangible personal
2 6 property or services are used or disposed of by the purchaser
2 7 in a nonexempt manner, the purchaser is liable solely for the
2 8 taxes and shall remit the taxes directly to the department in
2 9 accordance with this subsection.
2 10 EXPLANATION
2 11 The bill provides that the department of revenue and
2 12 finance shall issue or the seller may provide separately
2 13 exemption certificates for nontaxable sales made to state and
2 14 county fairs for purposes of the state sales and use taxes.
2 15 The exemption certificate would allow state and county fairs
2 16 to purchase property or services for its own use without
2 17 having to first pay the sales tax since these fairs are exempt
2 18 from the tax.
2 19 LSB 4326HC 76
2 20 mg/jj/8
Text: HSB00740 Text: HSB00742 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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