Sourcing of purchases of direct mail
Sec. 3. (a) Notwithstanding section 1 of this chapter, a purchaser
of direct mail that is not a holder of a direct pay permit shall provide
to the seller in conjunction with the purchase either a direct mail
form or information to show the jurisdictions to which the direct mail
is delivered to recipients.
(b) Upon receipt of the direct mail form, the seller is relieved of
all obligations to collect, pay, or remit the applicable tax and the
purchaser is obligated to pay or remit the applicable tax on a direct
pay basis. A direct mail form remains in effect for all future sales of
direct mail by the seller to the purchaser until it is revoked in writing.
(c) Upon receipt of information from the purchaser showing the
jurisdictions to which the direct mail is delivered to recipients, the
seller shall collect the tax according to the delivery information
provided by the purchaser. In the absence of bad faith, the seller is
relieved of any further obligation to collect tax on any transaction
where the seller has collected tax under the delivery information
provided by the purchaser.
(d) If the purchaser of direct mail does not have a direct pay
permit and does not provide the seller with either a direct mail form
or delivery information, as required by subsection (a), the seller shall
collect the tax according to section 1(d)(5) of this chapter. Nothing
in this subsection limits a purchaser's obligation for sales or use tax
to any state to which the direct mail is delivered.
(e) If a purchaser of direct mail provides the seller with
documentation of direct pay authority, the purchaser shall not be
required to provide a direct mail form or delivery information to the
seller.
As added by P.L.257-2003, SEC.32.
Last modified: May 28, 2006