DRS: 12-426-15, Charitable and religious organizations: Exemption certificates - Repealed effective 4/6/00

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications, 111 Phoenix Avenue, Enfield, CT 06082,  colp@jud.state.ct.us. Copies of DRS forms and publications are available at http://www.ct.gov/drs


Repealed Effective 4/6/00

Conn. Agencies Regs. 12-426-15.   Charitable and religious organizations: Exemption certificates.

a) The Sales and Use Tax [Act] does not apply to retail sales of tangible personal property or services to charitable and religious organizations. "Charitable and religious organization" shall mean and include any organization established exclusively for charitable, religious, scientific, educational literary, historical or cemetery purposes or for two or more of such purposes, provided the charter of such organization, if it is incorporated, or its constitution or by-laws, if unincorporated, shall contain a provision that no officer, member or employee thereof shall receive or at any future time may receive any pecuniary profit from the operation thereof, except a reasonable compensation for services in effecting one or more of such purposes.

(b) The Sales and Use Tax does not apply to retail sales of tangible personal property or services to or by any Connecticut nonprofit charitable hospital.

(c) The sales and use tax does not apply to retail sales of tangible personal property or services to nonprofit housing organizations for incorporation in or for use in the operation of housing and related facilities for low and moderate income families and persons.

(1) "Related facilities" shall mean commercial, office, health, welfare, administrative, recreational, community and service facilities incidental and pertinent to housing as defined by the Connecticut Housing Finance Authority.

(2) "Low and moderate income families and persons" shall mean families and persons who lack the amount of income necessary to rent or purchase safe and adequate housing without special financial assistance. The qualifying income level will be determined by the Connecticut Housing Finance Authority.

(d) The Sales and Use Tax does not apply to sales to centers of service for elderly persons, as described in Conn. Gen. Stat. 17-137c(d), which are certified as so qualifying by the tax assessor in the municipality in which such center of service is located.

(e) Organizations listed in (a), (b), (c) or (d) shall establish their right to exemption by filing proof of eligibility with the Commissioner of Revenue Services. Such proof shall consist of a certified copy of its charter if the applicant is a corporation or, if unincorporated, a certified copy of its constitution and bylaws, together with affidavits showing the source and disposition of its income, the nature and scope of its activities, and any other relevant information required by the commissioner. Exemption from local property taxes under the provision of Connecticut General Statutes 12-81 if applicable and exemption from federal income tax under the provisions of the Internal Revenue Code of 1954, 501 (c) may be submitted as evidence to support a claim for exemption, but such evidence shall not necessarily be deemed conclusive. An exemption permit shall be issued by the commissioner after determination of eligibility.

(f) The benefits of tax-exempt status are confined strictly to the legal entity which has qualified for such status. A tax-exempt organization which purchases taxable goods and/or services shall not owe the Sales and Use Tax if it uses its own funds and if the purchase is made exclusively for the purposes for which the organization was established. If the tax-exempt organization makes a purchase for the convenience of its officers, employees, members or other individuals, the Sales and Use Tax shall be due and owing.

(g) The burden of proving that a sale of tangible personal property or service is not a taxable sale at retail is upon the seller, unless he takes a certificate from the purchaser that the property is purchased by and for the use of organizations listed in (a), (b), (c) or (d). The certificate shall be substantially in the form prescribed below. It shall in all cases be signed by the purchaser, bear its name and address and the number of its exemption permit. The following form of exemption certificate is prescribed by the commissioner and copies of the same may be made and used by any purchaser or lessee of tangible personal property or service in accordance with this section. Nonprofit charitable hospitals may delete the words "and will not be resold" appearing therein:

                                    CHARITABLE AND RELIGIOUS ORGANIZATIONS
                                                    EXEMPTION CERTIFICATE

    "I HEREBY CERTIFY: that this organization is the holder of valid exemption permit No. . . . . . . . issued pursuant to the Sales and Use Tax Act, that the tangible personal property described herein which I shall purchase or lease or the service(s) which I shall purchase from:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . will be used exclusively by this organization for the purposes for which it is organized and will not be resold. If a sale of meals to this organization is involved, I certify that this organization neither has been nor will be reimbursed in any manner, by donations, sales of tickets or otherwise, by the consumers of the meals for the price of such meals.

                                            Description of property or service(s):
            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
            Purchaser . . . . . . . . . . . . . . . . . . . .

                                                    Name of Organization

            By . . . . . . . . . . .                          Title . . . . . . . . . .
            Address . . . . . . . . . . . . . . . . . . . . .
            Dated . . . . . . . . . . . . 19. . . . .
            at . . . . . . . . . . . . . . . . . . . "

Under "Description of property or service(s)" there may appear:

(1) Either an itemized list of the particular property to be purchased or leased, or

(2) An itemized list of particular service(s) to be purchased (a certificate thus describing the property and/or service(s) is good until revoked in writing).

This certificate may be used for a single purchase or lease, or it may be used as a blanket certificate for a continuing line of purchases or leases, in which case the certificate should be plainly marked "Blanket Certificate."

The federal government, its agencies, the state of Connecticut and its subdivisions and their respective agencies may use this certificate by deleting "the holder of valid exemption permit number ........................ issued pursuant to" and inserting "exempt under section 12-412 (a)."

(Effective April 7, 1980.)