Direct pay permits: Use; application for permit. [Effective January 1, 2006.]
1. A purchaser may purchase tangible personal property without paying to the seller at the time of purchase the sales and use taxes that are due thereon if:
(a) The seller does not maintain a place of business in this state; and
(b) The purchaser has obtained a direct pay permit pursuant to the provisions of this section.
2. A purchaser who wishes to obtain a direct pay permit must file with the Department an application for such a permit that:
(a) Is on a form prescribed by the Department; and
(b) Sets forth such information as is required by the Department.
3. The application must be signed by:
(a) The owner if he is a natural person;
(b) A member or partner if the seller is an association or partnership; or
(c) An executive officer or some other person specifically authorized to sign the application if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.
4. Any purchaser who obtains a direct pay permit pursuant to this section shall:
(a) Determine the amount of sales and use taxes that are due and payable to this state or a local government of this state upon the purchase of tangible personal property from such a seller; and
(b) Report and pay those taxes to the appropriate authority.
5. If a purchaser who has obtained a direct pay permit purchases tangible personal property that will be available for use digitally or electronically in more than one jurisdiction, he may, to determine the amount of tax that is due to this state or to a local government of this state, use any reasonable, consistent and uniform method to apportion the use of the property among the various jurisdictions in which it will be used that is supported by the purchaser’s business records as they exist at the time of the consummation of the sale.
Last modified: February 27, 2006