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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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R


465.0000 Remedies of Taxpayers

Annotation 465.0575

(c) Notice of Determination


465.0575 Exemption Certificates—After Expiration of Statute. The sale of property to a watercraft operator who had not submitted an exemption certificate was disallowed in the audit of the vendor. At the time of sale the purchaser held a permit and filed sales and use tax returns, but closed out the next year. The vendor filed a timely petition and succeeded in obtaining an exemption certificate from the buyer, resulting in the elimination of the transaction from the amount determined. The original sale occurred in 1968, and the certificate was accepted in March, 1972, after the statute of limitations had run on the period in which the sale and use of the property had been made. A subsequent audit of the buyer disclosed that the purchase was in fact taxable and the certificate should not have been issued. The Board has no recourse against the buyer for tax on this transaction since the late acceptance of an exemption certificate does not extend the statute of limitations, and the period of taxability had expired before it became known that the sale was taxable. 12/26/72.