Tag Archives: exemption certificates

South Dakota: Top 10 Errors Found During Audits

Everyone makes mistakes. Cicero said, “We must not say every mistake is a foolish one.” George Bernard Shaw links mistakes to honor, “A life spent making mistakes is not only more honorable, but more useful than a life spent doing … Continue reading

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New Mexico: Proper Proof of Nontaxable Transactions Required

How does your business prove nontaxable transactions are valid? A business in New Mexico was recently handed a bill for over $7,200, including penalty and interest, for not properly filing its gross receipts returns for specific tax periods and for … Continue reading

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Small Business in Illinois Shutters Because of Audit Findings

A small business in Springfield, Illinois, was audited recently and the owners were distressed by what they learned. Five years ago, when they were last audited, they were told they were doing things right. This time, the auditor spent ten … Continue reading

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Colorado: How to Document Exempt Sales

The Colorado Department of Revenue has released an information notice for Colorado sellers, detailing “How to Document Sales to Retailers, Tax-Exempt Organizations and Direct Pay Permit Holders.” It was created to help vendors “determine whether a customer is eligible to … Continue reading

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Tennessee: Agricultural Sales or Use Tax Exemption Certificates Don’t Exempt Everything

In Tennessee, many agriculture-related purchases are eligible for an exemption from sales tax. As a result, many agricultural businesses have agricultural sales or use tax exemption certificates. Yet these exemption certificates do not give businesses a blanket exemption from all … Continue reading

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Renewing Florida Resale Certificates

Resale certificates allow businesses to purchase or rent property or services tax free when they are purchased to be sold or rented or incorporated into property that will be sold or rented. Resale certificates are only issued to businesses registered … Continue reading

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Texas: Properly Fill Out That Exemption Certificate Or Else…

Most of us learn as young children that it’s not okay to lie. We learn this from Aesop’s fable, The Boy Who Cried Wolf, in which a young boy pretends to encounter a wolf so many times that when he … Continue reading

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Virginia: Exemption Certificates Must Be Current, On File

In states with a sales tax, such as Virginia, all purchasers are required to pay sales tax on taxable transactions unless they provide the seller with a valid exemption certificate. An exemption certificate certifies that the holder of the certificate … Continue reading

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Virginia: IUDs Are Exempt

Do intrauterine copper contraceptive devices (IUD) meet the criteria for durable medial equipment and qualify for an exemption from sales and use tax in Virginia? According to a recent ruling by the Virginia Tax Commissioner, they do. This issue arose … Continue reading

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Washington: October Brings Tax Free Financial Information

In 2007, Washington State lawmakers created a sales tax exemption for electronically delivered standard financial information, provided the sales were to an investment management company or financial institution. However, that sales tax exemption for standard financial information was later eliminated … Continue reading

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