Text: HSB00216                          Text: HSB00218
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 217

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.47, subsection 3, paragraph d, Code
  1  2 1999, is amended to read as follows:
  1  3    d.  A valid exemption certificate is taken in good faith by
  1  4 the seller when the seller has exercised that caution and
  1  5 diligence which honest persons of ordinary prudence would
  1  6 exercise in handling their own business affairs, and includes
  1  7 an honesty of intention and freedom from knowledge of
  1  8 circumstances which ought to put one upon inquiry as to the
  1  9 facts.  In order for a seller to take a valid exemption
  1 10 certificate in good faith, the seller must exercise reasonable
  1 11 prudence to determine the facts supporting the valid exemption
  1 12 certificate, and if any facts upon such certificate would lead
  1 13 a reasonable person to further inquiry, then such inquiry must
  1 14 be made with an honest intent to discover the facts.  
  1 15                           EXPLANATION 
  1 16    Present law requires a seller under the state sales tax to
  1 17 exercise reasonable prudence to determine the facts supporting
  1 18 an exemption certificate before the seller can accept the
  1 19 certificate in good faith.  This bill provides that a seller
  1 20 acts in good faith if the seller is free from knowledge of
  1 21 circumstances that would put one upon inquiry as to the actual
  1 22 facts of whether the certificate is valid or not.  
  1 23 LSB 1959HC 78
  1 24 mg/cf/24
     
Text: HSB00216                          Text: HSB00218
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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