AN 95(10)

Procedures For Qualified Exempt Organizations Making Purchases Exempt From Sales And Use Taxes

This publication is modified and superseded by IP 2002(11)

PURPOSE: To provide information on the availability and use of CERT-119, Certificate for Purchases of Tangible Personal Property and Services by Qualifying Exempt Organizations.

CHANGE IN EXEMPTION: The General Assembly amended the exemption from sales and use taxes for purchases by exempt organizations under Conn. Gen. Stat. §12-412(8). For sales occurring on or after July 1, 1995, an organization may make purchases exempt from sales and use taxes if the organization was either issued an exemption permit by the Department of Revenue Services before July 1, 1995 or is exempt from federal income tax under section 501(a) of the Internal Revenue Code and has been determined, by a determination letter issued by the United States Treasury Department, to be an organization described under section 501(c)(3) or (13) of the Internal Revenue Code, which determination letter has not been revoked by the Internal Revenue Service.

CERTIFICATE NOW AVAILABLE: CERT-119, Certificate for Purchases of Tangible Personal Property and Services by Qualifying Exempt Organizations, was issued by the Department in response to the 1995 legislative changes to the exemption for purchases by exempt organizations under Conn. Gen. Stat. §12-412(8) and is now available. Exempt organizations must issue CERT-119 to retailers when making exempt purchases, other than purchases of meals and lodging, on or after October 1, 1995. An explanation of the procedures that exempt organizations must follow when making exempt purchases on or after October 1, 1995 and on the proper use of CERT-119 is provided in SN 95(10), 1995 Legislative Changes Affecting Exempt Purchases by Exempt Organizations.

The Charitable and Religious Organizations Exemption Certificate, the form of which is prescribed under Conn. Agencies Regs. §12-426-15(g), is not to be used by exempt organizations under Conn. Gen. Stat. §12-412(8) for purchases made on or after October 1, 1995.

PURCHASES OF MEALS AND LODGING BY EXEMPT ORGANIZATIONS: Exempt organizations are not to issue CERT-119 when making purchases of meals and lodging. While the Department will soon be announcing a change in its procedures regarding purchases of meals and lodging by exempt organizations, the procedures set out in Bulletin 34, Purchases of Meals/Lodging by Exempt Organizations, are to be followed until further notice. However, on or after November 1, 1995, an exempt organization that submits a Bulletin 34A, Application for Approval of Sales Tax Exemption for Meals and/or Lodging, to the Department is to attach to the Bulletin 34A a copy of its exemption permit (if the organization has been issued an exemption permit by the Department before July 1, 1995) or its determination letter (if the organization has been determined, by a determination letter issued by the United States Treasury Department, to be an organization described under section 501(c)(3) or (13) of the Internal Revenue Code).

OTHER ORGANIZATIONS ISSUED AN EXEMPTION PERMIT BEFORE JULY 1, 1995: Nonprofit charitable hospitals that claim exemption from sales and use taxes on their purchases under Conn. Gen. Stat. §12-412(5) or centers of service for elderly persons that claim exemption from sales and use taxes on their purchases under Conn. Gen. Stat. §12-412(35) and that were issued an exemption permit before July 1, 1995 by the Department under Conn. Agencies Regs. §12-426-15 should issue the CERT-119 to retailers when making purchases on or after October 1, 1995, and should no longer issue the Charitable and Religious Organizations Exemption Certificate, the form of which is prescribed in Conn. Agencies Regs. §12-426-15, to retailers when making purchases on or after October 1, 1995.

Nonprofit housing organizations that claim exemption from sales and use taxes on their purchases in connection with the operations of their housing facilities under Conn. Gen. Stat. 12-412(29) and that were issued an exemption permit before July 1, 1995 by the Department under Conn. Agencies Regs. §12-426-15 may not issue the CERT-119 to retailers when making purchases on or after October 1, 1995, and should continue to issue the Charitable and Religious Organizations Exemption Certificate, the form of which is prescribed in Conn. Agencies Regs. §12-426-15, to retailers when making purchases.

Nonprofit nursing homes, nonprofit rest homes and nonprofit homes for the aged that claim exemption from sales and use taxes on their purchases under Conn. Gen. Stat. §12-412(5) and that were issued an exemption permit before July 1, 1995 by the Department under Conn. Agencies Regs. §12-426-15 may not issue the CERT-119 to retailers when making purchases on or after October 1, 1995, and should continue to issue the CERT-113, Certificate for Purchases of Tangible Personal Property and Services by a Nonprofit Nursing Home, Nonprofit Rest Home or Nonprofit Home for the Aged, to retailers when making purchases.

HOSPITALS AND CENTERS OF SERVICE NOT ISSUED AN EXEMPTION PERMIT BEFORE JULY 1, 1995: Any hospital that claims exemption from sales and use taxes on its purchases under Conn. Gen. Stat. §12-412(5) and any center of service for elderly persons that claims exemption from sales and use taxes on its purchases under Conn. Gen. Stat. §12-412(35) and that was not issued an exemption permit before July 1, 1995 by the Department under Conn. Agencies Regs. §12-426-15 may, if it has been determined, by a determination letter issued by the United States Treasury Department, to be an organization described under section 501(c)(3) of the Internal Revenue Code, issue the CERT-119 to retailers when making purchases on or after October 1, 1995. If the hospital or center of service has not been issued such a determination letter by the United States Treasury Department, it must apply to the Legal Division of the Department for an exemption permit.

EFFECT OF THIS DOCUMENT: An announcement is a document that alerts taxpayers to important information. Such information may involve new administrative policies or procedures of the Department.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Website.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

AN 95(10)
Sales and use tax
Issue: 10/24/95