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Sales Tax State Activity Update - April 2006

Connecticut Contractors Receive Exemption Certificate Guidelines

The Connecticut Department of Revenue Services published an announcement to clarify the appropriate use of exemption certificates by contractors when performing installation work with a "qualified entity".

A "qualified entity" refers to a manufacturer, fabricator, or other purchaser who meets the requirements for purchasing tangible personal property exempt under certain provisions of Conn.Gen. Stat. §12-412 or partially exempt under Conn. Gen. Stat. §12-412i.

The following is a listing of exemption certificates that may be used by a contractor to purchase tangible personal property exempt from sales and use tax for a "qualified entity":

• CERT-117, Purchases of Tangible Personal Property Incorporated Into or Consumed in Air Pollution Control Facilities (Conn. Gen. Stat. §12-412(22))
• CERT-124, Purchases of Tangible Personal Property Incorporated Into or Consumed in Wa-ter Pollution Control Facilities (Conn. Gen. Stat. §12-412(21))
• CERT-126, Exempt Purchases of Tangible Personal Property or Services for Low or Moder-ate Income Housing Facilities (Conn. Gen. Stat. §12-412(29))
• CERT-131, Exemption for Projects of the Connecticut Resources Recovery Authority and Solid Waste-To-Energy Facilities (Conn. Gen. Stat. §§12-412(92) and (95))

The following is a listing of exemption certificates that require a "qualified entity" to attest to its exempt use as a "purchaser":

• CERT-100, Materials, Tools, and Fuel (Conn. Gen. Stat. §12-412(18))
• CERT-101, Machinery, Component Parts, and Replacement and Repair Parts of Machinery Used Directly in a Manufacturing Process (Conn. Gen. Stat. §§12-412(34) and (73))
• CERT-108, Partial Exemption of Materials, Tools, and Fuels (Conn. Gen. Stat. §12-412i)
• CERT-109, Partial Exemption for Machinery, Equipment, or Repair and Replacement Parts (Conn. Gen. Stat. §12-412i)
• CERT-111, Machinery, Equipment, Materials, Tools, and Fuel Used by an Aircraft Manufac-turer Operating an Aircraft Manufacturing Facility (Conn. Gen. Stat. §12-412(78))
• CERT-120, Machinery, Equipment, Tools, Materials, and Supplies Used in the Production of Printed Material or in Prepress Production (Conn. Gen. Stat. §§12-412(71) and (72))
• CERT-129, Exemption for Items Used Directly in the Biotechnology Industry (Conn. Gen. Stat. §12-412(89))
• CERT-138, Purchases for Use in Audio or Video Production or Broadcasting (Conn. Gen. Stat. §12-412(44))

The full text can be accessed on the Connecticut Department of Revenue website.

(Connecticut Department of Revenue Services Announcement 2006(7), 02/22/06)

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