Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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545.0000 "TAX-PAID PURCHASES RESOLD"—Regulation 1701

Annotation 545.0019.775

545.0019.775 Property Resold in Taxable or Nontaxable Transaction. Taxpayers are permitted to take a tax-paid purchases resold deduction, if otherwise appropriate, notwithstanding the fact that the specific property as to which sales tax reimbursement or use tax was paid is not sold in a taxable retail sale, so long as it is resold without use. The sole criteria is that the taxpayer must have some taxable measure whether sales tax or self-accrued use tax, or otherwise, against which a deduction may be taken. A net refund is not permitted.

If a taxpayer is unable to take the tax-paid purchases resold deduction, the amount is subject to refund to the taxpayer's vendor by way of a claim of refund by the vendor, if the sale to the taxpayer is treated as a sales tax transaction by the vendor, or by way of a claim for refund by the taxpayer, if the taxpayer self-reported use tax on the acquisition of the property. 6/24/96.