Tax Exemption Numbers For Connecticut State Agencies
PURPOSE: The purpose of this policy statement is to announce that the Department of Revenue Services (DRS) is now assigning tax exemption numbers to Connecticut government agencies that qualify for sales and use tax exemption under Conn. Gen. Stat. §12-412(1)(A).
STATUTORY AUTHORITY: Conn. Gen. Stat. §12-412(1)(A).
EFFECTIVE DATE: Effective upon issuance.
BACKGROUND: State government agencies have had ongoing difficulties with retailers substantiating their tax-exempt status. Retailers that deal with government agencies have also experienced problems in verifying tax-exempt purchases. To remedy these difficulties and to allow both the agencies and their retailers to operate more efficiently, the Comptroller’s Office has requested that DRS issue tax exemption numbers to state government agencies.
DRS will issue tax exemption numbers only to Connecticut state agencies. Tax exemption numbers will not be assigned to agencies of the United States government or to municipalities or their agencies.
TAX EXEMPTION NUMBERS FOR STATE AGENCIES: DRS will issue tax exemption numbers only to Connecticut state agencies. Tax exemption numbers will not be assigned to agencies of the United States government or to municipalities or their agencies.
The agency’s tax exemption number may be used in conjunction with the Governmental Agency Exemption Certificate for paper purchase orders and will appear on its purchasing cards (see below).
PURCHASING CARDS: The Comptroller’s Office is developing a purchasing card program for state agencies. Purchasing cards, which are similar to credit cards, may be used by authorized state agency personnel to make agency purchases of $1000 or less. As government agencies move from paper purchase orders to purchase cards, tax exemption numbers will be particularly important in helping the purchasing card program operate smoothly.
MEALS AND LODGING PREAPPROVALS: DRS will continue to require qualifying state agencies and all other exempt organizations to obtain DRS advance approval for sales and use tax exemptions for meals and lodging. Exempt organizations must request prior approval at least three weeks before the transaction for which they seek exemption. See PS 96(7), Purchases of Meals or Lodging by Exempt Organizations or Qualifying Governmental Agencies; CERT-112, Certificate for Exempt Qualifying Purchases of Meals or Lodging by an Exempt Organization or Qualifying Governmental Agency; and CERT-123, Blanket Certificate for Exempt Qualifying Purchases of Meals or Lodging by an Exempt Organization or Qualifying Governmental Agency.
SALES AND PURCHASES BY FEDERAL GOVERNMENT AGENCIES: For information on sales and purchases by federal government agencies, see PS 95(2), Retailer’s Acceptance of U.S. Government "I.M.P.A.C." Credit Card for Purchases Exempt Under Conn. Gen. Stat. §12-412(1).
EFFECT ON OTHER DOCUMENTS: None affected.
EFFECT OF THIS DOCUMENT: A Policy Statement (PS) is a document that explains in depth a current Department policy or practice affecting the liability of taxpayers. Unlike a Ruling, a Policy Statement does not apply a policy or practice to a specific set of facts but it may be referred to for a general guidance by taxpayers. Unlike a Special Notice, it does not announce a new policy or practice in response to changes in state or federal laws on regulations or to judicial decisions.
FOR FURTHER INFORMATION: Please call the Department of Revenue Services during business hours, Monday through Friday:
- 1-800-382-9463 (toll-free from within Connecticut); or
FORMS AND PUBLICATIONS: Forms and publications are available all day, seven days a week:
- Internet: preview and download forms and publications from the DRS web site: http://www.ct.gov/drs
- Telephone: use the phone number listed above and select Option 2 from a touch-tone phone. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.
Sales and use tax