Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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475.0000 RESALE CERTIFICATES—Regulation 1668

Annotation 475.0103

475.0103 Invalid Certificate. The fact that a resale certificate was not timely and failed to show the buyer's seller's permit number does not necessarily make the transaction taxable. A valid certificate relieves the seller of the burden of proof that the sale was not at retail. An invalid certificate makes it necessary for the seller to provide specific evidence that the sale was not at retail. Failing to do so makes the sale taxable under the presumption in section 6091.

A seller negotiates a sale to a research facility who will resell the item to the U.S. Government, but the seller is instructed to invoice the sale and pass title to a finance company who issues a late and incomplete resale certificate to the seller. The sale to the finance company was a valid sale for resale since the finance company sold the item to the research facility without prior use and the finance company has sufficient documentation to show this. 7/25/88.