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 475.0168.190

475.0168.190 Purchaser's Liability for Sales Tax Reimbursement. A purchaser owes the seller sales tax reimbursement for the seller's sales tax liability if their contract of sale so provides. When a purchaser issues a document intended to be a resale certificate in order to avoid paying sales tax reimbursement, it is clear that, but for that document, the seller would have collected reimbursement from the purchaser. Thus, when such a document is not a valid resale certificate and the seller is held liable for sale tax, the seller is entitled to collect reimbursement from the purchaser for that sales tax liability. In order to avoid having to pay the seller such reimbursement, the purchaser must provide the seller sufficient documentation that the purchaser resold the property without use, such that the seller can carry its burden with the Board of establishing that its sales were actually for resale. 5/16/97.