This Policy Statement has been cited in PS 98(4) and PS 98(7)
and modified and superseded by PS 2000(1.1)
Retailer's Acceptance of U.S. Government
"I.M.P.A.C." Credit Card For Purchases
Exempt Under Conn. Gen. Stat. §12-412(1)
PURPOSE: On August 31, 1989, the Department issued TSSN-25, NOTICE TO RETAILERS UNITED STATES GOVERNMENT TAX EXEMPT CREDIT CARD. TSSN-25 indicated that the U.S. Government I.M.P.A.C. Visa credit card could be accepted by retailers for most exempt purchases, but could not be used to pay for travel, meals or lodging expenses. This Policy Statement changes the policy set forth in TSSN-25.
EFFECTIVE DATE: Applicable to all purchases made on or after the date of issuance of this Policy Statement.
STATUTORY AUTHORITY: Conn. Gen. Stat. §12-412(1).
EXEMPT SALES AND PURCHASES: Sales of tangible personal property or services, including sales of travel, meals or lodging, made to U.S. Government employees using a Rocky Mountain Bankcard System Visa credit card imprinted I.M.P.A.C. and US GOVT EXEMPT are exempt from sales and use taxes. The federal employee need not provide a retailer with the Governmental Agency Exemption Certificate ordinarily required when sales are made to the U.S. Government. However, the retailer must retain the imprinted US GOVT EXEMPT merchant copy of the sales receipt for its records.
In addition, to verify that the card is being used by an authorized person, a retailer should require identification establishing the person's identity and status as a U.S. Government employee, such as an employee photo identification card. The retailer should note the employee's identification number and agency on the merchant copy of the sales receipt the retailer retains for its records.
If a retailer has reason to believe that the card is being used to make any purchase not associated with official U.S. Government business, the retailer must charge sales and use taxes on any such purchase. The credit card holder can then request a refund from the Department for such taxes by submitting evidence that the purchase was for official U.S. Government business.
EFFECT OF THIS DOCUMENT: A Policy Statement is a document that explains in depth a current Department policy or practice affecting the liability of taxpayers. Unlike a Letter Ruling, a Policy Statement does not apply a policy or practice to a specific set of facts but it may be referred to for 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 or regulations or to judicial decisions.
EFFECT ON OTHER DOCUMENTS: This Policy Statement supersedes TSSN-25.
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 Web home page at https://www.ct.gov/drs. Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.
Sales and Use Taxes