The MTC form is the easiest form to use.
(IF you follow all the additional pages of fine print)
(IF you are strictly a reseller)
(IF you never get audited)
The Multistate Tax Commission (MTC) released the latest version of their widely popular Uniform Sales & Use Tax Certificate last month. I always enjoy sifting through the notes on the additional pages of rules. Most people really like this form. I don’t. Their perception is that it makes life nice and simple. You can use one form to list all your state ID numbers and not have to deal with all the other state specific forms. The reality is that it really can only be used for a limited audience of users. Here are some things to be aware of about the form:
1. It’s only accepted for resale transactions in AZ, CA, CO, CT, DC, KY, HI, IL, MD, NM, NC, PA, RI and WI. If you are a manufacturer, go find another form.
2. Florida keeps appearing and disappearing from the form. The truth is, Florida thinks you should always acquire a copy of the buyer’s Florida license. If you use this form, you really should get a copy of the license as backup. Otherwise, plan on visiting the Florida DOR website to confirm the number.
3. Michigan follows SST guidelines, except on this form, which Michigan says will expire in four years.
4. Nebraska also follows SST guidelines, except they say this form expires in three years.
5. Ohio will accept almost any use of this form, but remember that the customer must write their reason for exemption in the State ID number area.
6. Pennsylvania says this form is only accepted if the buyers use an eight digit number on the form.
7. Washington, yet another SST state that imposes an expiration of four years.
These are just highlights from the 3 pages of fine print. I still believe everyone is better off avoiding this form. There are just too many pitfalls when the audit rolls in.
What's been your experience?
Other recent “Exemption Certificate Mgmt.” posts by Silvia Aguirre:
- Exemption Certificates for Federal Government Purchases
- Marketplace Fairness: What Does It Mean For Exemption Certificates?
- Will Oregon Start Charging Sales Tax? If So - Are You Ready?
- Canada is Bringing Back Exemption Certificates!
- Louisiana Changes State Forms to Include Parish Exemptions
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