(1) When a retail purchaser purchases
tangible personal property which is exempt from sales tax pursuant to Section
40-23-4(a)(2), (4), or
(22) or use tax pursuant to Section
40-23-62(5), (7), or
(23); the filing by said purchaser of a
certificate in the following form shall relieve the seller of any obligation to
collect sales or use tax on the items purchased in conjunction
therewith:
ALABAMA DEPARTMENT OF REVENUE
SALES AND USE TAX DIVISION
EXEMPTION CERTIFICATION RESPECTING FERTILIZERS,
INSECTICIDES, FUNGICIDES, AND SEEDLINGS
Purchaser's
Name:____________________________________________________________
Address:_________________________________________________________
City:______________________ State:___________ Zip Code:
____________
SCS Farm
Number:_________________________________________________
(if available)
I, the undersigned, hereby certify that the items of tangible
personal property purchased from (name of retailer) will be used for the
exempt: agricultural purposes described in subdivisions (2), (4), or (22) of
Section
40-23-4(a)
or subdivisions (5), (7), or (23) of Section
40-23-62,
Code of Ala. 1975, as Amended, and therefore may be
purchased without payment of sales or use tax under Alabama law. I am aware
that liability for payment of any sales or use tax ultimately determined to be
applicable with respect to the items so purchased will be the exclusive
responsibility of the undersigned.
Signature:____________________________
Date:__________________
(2) The form
outlined in paragraph (1) shall be referred to as Form ST: EXC-1 Exemption
Certification Respecting Fertilizers, Insecticides, Fungicides, and Seedlings
and the following procedures should be followed in conjunction with the
execution of said form:
(a) all of the
information requested on the form should be completed;
(b) the seller should furnish a copy of the
completed certificate, with sales receipt attached, to the purchaser;
and
(c) the seller should retain
the original certificate and a copy of the sales receipt for a three-year
period.
(3) The items
enumerated in Section
40-23-4(a)(2), (4), and
(22) and Section
40-23-62(5), (7), and
(23) are exempt from sales and use tax when
used for agricultural purposes regardless of whether Form ST: EXC-1 is executed
in conjunction with purchases of such items. Liability for sales or use tax on
such items will later arise only if the Revenue Department determines that the
item purchased, in fact, was not used for agricultural purposes. In the absence
of a properly executed Form ST: EXC-1, the seller is liable for sales or use
tax later determined to be due in the event the "agricultural use" exemption
claim is disallowed; however, by having the purchaser execute a Form ST: EXC-1
the seller can place upon the purchaser the exclusive responsibility for
payment of any sales or use taxes later determined to be due. Whenever a seller
feels that the purchaser's exemption claim is invalid, the seller should
collect sales or use tax from the purchaser or have the purchaser execute a
Form ST: EXC-l.
(4) The seller is
not required to secure a Form ST: EXC-1 for each sale of exempt items to a
farmer with a SCS farm number when said seller knows the items purchased will
be used for exempt agricultural purposes. Instead, the seller may have the
farmer complete an annual exemption certification form and keep the certificate
file and available for review by the Revenue Department along with other
business records. The purchaser's SCS farm number can be used as a reference
number on each sales invoice covered by the annual certification form. Such
annual exemption certification forms should be re-executed every 12
months.
(5) Form ST: EXC-1 may be
incorporated into the sales invoice if it contains substantially the same
information as provided for on the certification form. This may be done by
(i) including the certification form on the
sales invoice at the time of printing or,
(ii) by designing and using a rubber stamp to
add the information to the sales invoice. Other methods which accomplish the
same result as the exemption certification form may also be used. (Section
40-23-4.3
)
Author: Dan DeVaughn
