Background: State government agencies sometimes have difficulties substantiating their tax-exempt status with retailers when purchasing tangible personal property or services that are exempt under Conn. Gen. Stat. §12-412(1)(A). Retailers that deal with government agencies also experience problems in verifying such tax-exempt purchases. In an effort to allow both the agencies and their retailers to operate more efficiently, the Department of Revenue Services (DRS) has issued tax-exemption numbers to state government agencies since 2006. As some municipalities have encountered similar difficulties substantiating their tax-exempt status, DRS has begun to issue tax-exemption numbers to municipalities. Additionally, as explained herein, some state government agencies and municipalities issue P-cards to certain employees for use in making purchases on behalf of such government agency or municipality.
Tax-Exemption Numbers for State Agencies and Municipalities: DRS has issued tax-exemption numbers to Connecticut state agencies and to municipalities that participate in the Office of the State Comptroller’s P-card program. Tax-exemption numbers are not assigned to agencies of the U.S. government.
For paper purchase orders, the agency’s or municipality’s tax-exemption number is used in conjunction with CERT-134, Exempt Purchases by Qualifying Governmental Agencies. The tax-exemption number also appears on the agency’s or municipality’s P-cards (see Purchasing Cards).
If the retailer has reason to believe that a P-card is being used to make any purchase not directly billed to and paid by the Connecticut government agency or municipality, or that for any other reason the purchase does not qualify for exemption under Conn. Gen. Stat. §12-412(1), the retailer must charge sales and use tax on the purchase. The P-card holder can request a refund from DRS for the tax by submitting evidence that the purchase was paid directly by the qualifying agency or municipality. The purchaser should follow the procedures in Policy Statement 98(5), Sales and Use Tax Refund Policy.
Retailers failing to follow the verification guidelines established by DRS for authorized P-card users may be held liable for sales and use taxes on those sales.
For Further Information: Call DRS during business hours, Monday through Friday:
1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
860-297-5962 (from anywhere).
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications.
Paperless Filing/Payment Methods (fast, easy, free, and confidential):
Business and individual taxpayers can use the Taxpayer Service Center (TSC) at www.ct.gov/TSC to file a variety of tax returns, update account information, and make payments online.
File Electronically: You can choose first-time filer information and filing assistance or log directly into the TSC to file returns and pay taxes.
Pay Electronically: You can pay taxes for tax returns that cannot be filed through the TSC. Log in and select the Make Payment Only option. Designate a payment date up to the due date of the tax and mail a paper return to complete the filing process.
DRS E-Alerts Service: Get connected to the latest news from DRS. Receive notification by email of changes to legislation, policies, and procedures.
DRS E-Alerts provide information for employer’s withholding tax, News – Press Releases, and Top 100 Delinquency List. Visit the DRS website at www.ct.gov/DRS and select e-alerts from the left navigation bar.
Sales and use taxes