Connecticut General Statutes 12-410 – Presumptions and resale certificates
(a) Presumption of taxability; resale certificate. For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax it shall be presumed that all receipts are gross receipts that are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property or service constituting a sale in accordance with subdivision (2) of subsection (a) of § 12-407 is not a sale at retail is upon the person who makes the sale unless such person takes in good faith from the purchaser a certificate to the effect that the property or service is purchased for resale.
Terms Used In Connecticut General Statutes 12-410
- Aircraft: means aircraft, as the term is defined in §. See Connecticut General Statutes 12-407
- Business: includes any activity engaged in by any person or caused to be engaged in by any person with the object of gain, benefit or advantage, either direct or indirect. See Connecticut General Statutes 12-407
- Certificated air carrier: means a person issued a certificate or certificates by the Federal Aviation Administration pursuant to Title 14, Chapter I, Subchapter G, Part 121, 135, 139 or 141 of the Code of Federal Regulations or the Civil Aeronautics Board pursuant to Title 14, Chapter II, Subchapter A, Parts 201 to 208, inclusive, and 298 of the Code of Federal Regulations, as such regulations may hereafter be amended or reclassified. See Connecticut General Statutes 12-407
- Digital goods: means audio works, visual works, audio-visual works, reading materials or ring tones, that are electronically accessed or transferred. See Connecticut General Statutes 12-407
- Gross receipts: means the total amount of the sales price from retail sales of tangible personal property by a retailer, the total amount of the rent from transfers of occupancy of rooms by an operator, the total amount of the sales price from retail sales of any service described in subdivision (2) of this subsection by a retailer of services, or the total amount of payment or periodic payments from leases or rentals of tangible personal property by a retailer, valued in money, whether received in money or otherwise, which amount is due and owing to the retailer or operator and, subject to the provisions of subdivision (1) of §. See Connecticut General Statutes 12-407
- Person: means and includes any individual, firm, copartnership, joint venture, association, association of persons however formed, social club, fraternal organization, corporation, limited liability company, foreign municipal electric utility as defined in §. See Connecticut General Statutes 12-407
- Personal property: All property that is not real property.
- purchasing: means and includes: (A) Any transfer, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property or of the occupancy of any room or rooms in a hotel, lodging house or bed and breakfast establishment for a period of thirty consecutive calendar days or less for a consideration. See Connecticut General Statutes 12-407
- sale at retail: means and includes a sale for any purpose other than resale in the regular course of business of tangible personal property or a transfer for a consideration of the occupancy of any room or rooms in a hotel, lodging house or bed and breakfast establishment for a period of thirty consecutive calendar days or less, or the rendering of any service described in subdivision (2) of this subsection. See Connecticut General Statutes 12-407
- Seller: includes every person engaged in the business of selling tangible personal property or rendering any service described in any of the subparagraphs of subdivision (2) of this subsection, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax and every operator as defined in subdivision (18) of this subsection. See Connecticut General Statutes 12-407
- Tangible personal property: includes (A) digital goods, (B) canned or prewritten computer software, including canned or prewritten software that is electronically accessed or transferred, other than when purchased by a business for use by such business, and any additional content related to such software, and (C) the distribution, generation or transmission of electricity. See Connecticut General Statutes 12-407
- Use: includes the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business. See Connecticut General Statutes 12-407
(b) Effect of certificate. The certificate relieves the seller from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property or services constituting a sale in accordance with subdivision (2) of subsection (a) of § 12-407 and who holds the permit provided for in § 12-409 and who, at the time of purchasing the tangible personal property or service: (1) Intends to sell it in the regular course of business; (2) intends to utilize such personal property in the delivery of landscaping or horticulture services, provided the total sale price of all such landscaping and horticulture services are taxable under this chapter; or (3) is unable to ascertain at the time of purchase whether the property or service will be sold or will be used for some other purpose. The burden of establishing that a certificate is taken in good faith is on the seller. A certificate to the effect that property or service is purchased for resale taken from the purchaser by the seller shall be deemed to be taken in good faith if the tangible personal property or service purchased is similar to or of the same general character as property or service which the seller could reasonably assume would be sold by the purchaser in the regular course of business.
(c) Form of certificate. The certificate shall be signed by and bear the name and address of the purchaser, shall indicate the number of the permit issued to the purchaser and shall indicate the general character of the tangible personal property or service sold by the purchaser in the regular course of business. The certificate shall be substantially in such form as the commissioner prescribes.
(d) Liability of purchaser. (1) If a purchaser who gives a certificate makes any use of the service or property other than retention, demonstration or display while holding it for sale in the regular course of business, the use shall be deemed a retail sale by the purchaser as of the time the service or property is first used by the purchaser, and the cost of the service or property to the purchaser shall be deemed the gross receipts from such retail sale.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, any use by a certificated air carrier of an aircraft for purposes other than retention, demonstration or display while holding it for sale in the regular course of business shall not be deemed a retail sale by such carrier as of the time the aircraft is first used by such carrier, irrespective of the classification of such aircraft on the balance sheet of such carrier for accounting and tax purposes.
(e) Sale for resale. (1) For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax, a sale of any service described in subdivision (37) of subsection (a) of § 12-407 shall be considered a sale for resale only if the service to be resold is an integral, inseparable component part of a service described in said subdivision that is to be subsequently sold by the purchaser to an ultimate consumer. The purchaser of the service for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the service was purchased and to whom the service was sold, (B) the purchase price of the service, and (C) the nature of the service to demonstrate that the services were an integral, inseparable component part of a service described in subdivision (37) of subsection (a) of § 12-407 that was subsequently sold to a consumer.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, no sale of a service described in subdivision (37) of subsection (a) of § 12-407 by a seller shall be considered a sale for resale if such service is to be subsequently sold by the purchaser to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of § 12-412.
(3) For purposes of subdivision (1) of this subsection, the sale of canned or prewritten computer software shall be considered a sale for resale if such software is subsequently sold, licensed or leased unaltered by the purchaser to an ultimate consumer. The purchaser of the software for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the software was purchased and to whom the software was sold, licensed or leased, (B) the purchase price of the software, and (C) the nature of the transaction with the ultimate consumer to demonstrate that the same software was provided unaltered to the ultimate consumer.
(4) For purposes of subdivision (1) of this subsection, the sale of digital goods shall be considered a sale for resale if the digital goods are subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part, as an integral, inseparable component part of a digital good or service described in subdivision (26), (27), (37) or (39) of subsection (a) of § 12-407 by the purchaser of the digital goods to an ultimate consumer. The purchaser of the digital goods for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the digital goods were purchased and to whom the services described in subdivision (26), (27), (37) or (39) of subsection (a) of § 12-407 was sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part, (B) the purchase price of the digital goods, and (C) the nature of the transaction with the ultimate consumer.
(5) For purposes of subdivision (1) of this subsection, the sale of services described in subdivision (37) of subsection (a) of § 12-407 shall be considered a sale for resale if such services are subsequently resold as an integral inseparable component part of digital goods sold by the purchaser of the services to an ultimate consumer of the digital goods. The purchaser of the services described in subdivision (37) of subsection (a) of § 12-407 for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the services described in subdivision (37) of subsection (a) of § 12-407 were purchases and to whom the digital goods were sold, licensed, or leased, (B) the purchase prices of the services described in subdivision (37) of subsection (a) of § 12-407, and (C) the nature of the transaction with the ultimate consumer.
(f) Sales to certain affiliates. For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax, no sale of any service by a seller shall be considered a sale for resale if such service is to be subsequently sold by the purchaser, without change, to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of § 12-412.