Connecticut Administrative Code › Title 12 - Taxation › 426 - Sales and Use Tax › Section 12-426-1 - Resale certificates

Current through July 10, 2024
(a) The burden of
			 proving that the sale, lease or rental of tangible personal property pursuant
			 to Regulation 12-426-25 or a sale of a service taxable pursuant to Regulations
			 12-426-26 and 12-426-27 is not a sale at retail is upon the seller/lessor
			 unless he takes a certificate from the purchaser that the property or service
			 is purchased for resale.
The certificate shall be taken in good faith from a person
				engaged in selling or leasing tangible personal property or taxable services
				who, at the time of purchase, intends to sell the property or services in the
				regular course of business or cannot then ascertain whether it will be so sold
				or not.
The certificate shall be substantially in the form prescribed
				in subsection (b). It shall in all cases be signed by the purchaser, bear his
				name and address and indicate the general character of the property or service
				sold by the purchaser in the regular course of his business. It shall also bear
				the number of the seller's permit held by the purchaser, but, if he is not
				required to hold a permit because he sells only property of a kind the sale of
				which is not taxable, e.g., food products for human consumption, or because he
				makes no sales in this state, he should make an appropriate notation to that
				effect on the certificate in lieu of his seller's permit number.
(b) The following form of resale
			 certificate is prescribed by the commissioner of revenue services and copies of
			 the same may be made and used by any seller of tangible personal property or
			 services in accordance with this section:
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				to view image.
Under "General Description of products to be purchased from the
				seller" there may appear (1) Either an itemized list of the particular
				property/service(s) to be purchased or leased for resale or (2) A general
				description of the kind of property to be purchased for resale.
This certificate may be used for the purpose of a single
				purchase of commodities/services for resale; in such case (1) above applies, or
				it may be used as a blanket certificate for the purpose of a continuing line of
				purchases of commodities for resale in the regular course of business; in the
				latter case (2) above applies, and the certificate should be plainly marked
				"Blanket Certificate."
(c)
			 The good faith of the seller will be questioned if he has knowledge of facts
			 which give rise to a reasonable inference that the purchaser does not intend to
			 resell the property, as, for example, knowledge that a purchaser of particular
			 merchandise is not engaged in the business of selling that kind of
			 merchandise.
(d) Resale
			 certificates shall be valid only for the period in which the purchaser is a
			 reseller of the items covered in such certificates but should be renewed at
			 least every three years from the date of issue.
(e) The terms "selling" and "purchasing" of
			 tangible personal property or commodities also encompass leases or rentals of
			 tangible personal property or commodities.
(f) Services may only be "sold" or
			 "purchased" and not rented or leased.