142.818. Federal government exemption, how claimed.
Federal government exemption, how claimed.
142.818. The exemption under section 142.815 for sales of motor fuelsold for use by the United States or any agency or instrumentality thereofshall be claimed as follows:
(1) The ultimate vendor shall obtain a certificate signed by thepurchasing entity listed in this section setting forth:
(a) The name and address of the purchasing entity;
(b) The quantity of motor fuel, or if the certificate is for all themotor fuel purchased by the purchasing entity, the certificate shall be fora period not to exceed three years;
(c) The exempt use of the motor fuel;
(d) The name and address of the ultimate vendor from whom the motorfuel was purchased;
(e) The federal employer identification number of the purchasingentity; and
(f) A statement that the purchasing entity understands that thefraudulent use of the certificate to obtain fuel without paying the taxlevied pursuant to this chapter shall result in the purchaser paying thetax, with penalties and interest, as well as such other penalties providedin this chapter;
(2) The ultimate vendor, having obtained from the purchasing entitythe certificate, which the ultimate vendor shall retain for a period of notless than three years, shall execute an ultimate vendor certificate whichshall contain the following information:
(a) The name and address of the ultimate vendor;
(b) The federal employment identification number of the ultimatevendor;
(c) The quantity of motor fuel sold and the date of the sale;
(d) A certification that the ultimate vendor sold motor fuel to thepurchasing entity for the exempt purpose;
(e) That the ultimate vendor has the necessary records to support thesale of the motor fuel; and
(f) That the ultimate vendor understands and agrees that thefraudulent use of the certificate to obtain fuel without paying the taxlevied pursuant to this chapter, or paying a refund of the tax, whether forthe ultimate vendor or others, shall result in the payment of the tax bythe ultimate vendor, with penalties and interest, as well as such otherpenalties provided in this chapter;
(3) The ultimate vendor shall give the executed ultimate vendorcertificate to the supplier who, having made reasonable commercialinquiries into the accuracy of the information in the certificate, shall beeligible to claim a credit against the tax liability on the ensuing monthlyreport of the supplier. As a condition of obtaining the credit, thesupplier shall credit or refund the tax to the ultimate vendor who made thesale to the purchasing entity. If there is an intermediate vendor, orvendors, in the distribution chain between the supplier and the ultimatevendor, each vendor shall endorse the certificate, subject to any rules andregulations promulgated by the director, and transmit the certificate tothe supplier and remit the credit, once received, to the customer of theintermediate vendor. The supplier and all vendors, if they accept thecertificate in good faith and make a reasonable inquiry as to the accuracyof the information contained in the certificate, shall be held harmless ifthe purchasing entity has made a fraudulent claim; and
(4) If the sale of motor fuel to the purchasing entity occurs at afixed retail pump available to the general public, the ultimate vendor,having made the sale to the purchasing entity without the tax, may applyfor a refund from the director by submitting the application and supportingdocumentation as the director shall reasonably prescribe. However, if thepurchase is charged to a fleet or government fueling credit card, or to anoil company credit card issued to the purchasing entity, the ultimatevendor may bill the purchasing entity without the tax and seek a refund, orutilize the provisions of this section. If the purchase occurs at abranded station of a supplier or permissive supplier, such supplier shallbe presumed to have elected to be the ultimate vendor and may claim acredit against the liability on its monthly tax return or apply for arefund.
(L. 1998 S.B. 619)Effective 1-1-99