Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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480.0000 RETAILER

Annotation 480.0025

480.0025 Buying Groups. A group of doctors form a corporation for the purpose of buying ophthalmic supplies. Vendors have oral agreements with the corporation that the buying group will pay for the supplies ordered by its member doctors. The member doctors receive a list of vendors who have agreed to bill the buying group at quantity discount prices. The doctors do not receive the discount unless the billing and payment is handled by the buying group. The doctors have a written agreement with the buying group which sets out the terms of payment by the doctors. Under these circumstances, the buying group is the retailer of the ophthalimic supplies purchased by its member doctors and is required to hold a seller's permit. 11/16/88.