Resale Exemption Certificate - City Of Colorado Springs Sales Tax Division

INSTRUCTIONS TO PURCHASERS REQUESTING EXEMPTION

1. This Resale Exemption Certificate is issued to companies that make no taxable sales in

Colorado Springs but which need to purchase for resale without paying City sales tax.

2. This Certificate may be issued to any company that holds a current State of Colorado

Wholesalers License. Once issued, if properly used, this Certificate will remain in effect for

as long as the Purchaser maintains a valid State Wholesalers License.

3. This Certificate must be signed by a person authorized to sign on behalf of the Company

requesting this exemption.

4. When approved by the City, a copy of this Certificate may be given to any Seller from

whom legitimate resale purchases are made.

5. For approval, please send this Certificate to the Sales Tax Division at P.O. Box 1575,

Mail Code 225, Colorado Springs, CO 80901. An approved copy will be returned to you.

6. Any merchandise purchased that is not used for its intended exempt purpose is subject to

City of Colorado Springs use tax.

7. This Certificate will be revoked for misuse, and responsible persons may be subject to

fines and prosecution.

INSTRUCTIONS TO SELLERS

1. The Seller may accept a properly approved Resale Exemption Certificate as authorization

to sell resale merchandise to the Purchaser without charging City sales tax. If the Seller does

not receive an approved Certificate, the Seller must collect City sales tax.

2. The Seller must maintain in its files a properly executed Resale Exemption Certificate from

all customers who claim exemption and do not hold a valid City sales tax license.

3. The Seller must exercise care that exempt property is of a type normally resold by the

Purchaser in the usual course of the Purchasers business. The Seller is responsible for

collecting City sales tax on the sale of all tools, equipment, and supplies which are not

normally resold by the Purchaser. A Seller failing to exercise due care may be held liable for

any sales tax due.

4. When properly approved by the City and issued to a Purchaser with a current State of

Colorado Wholesalers License, this Resale Exemption Certificate will remain in effect for as

long as the Purchaser maintains a current State Wholesalers license or until canceled by the

Purchaser or revoked by the City of Colorado Springs.

Resale Exemption Certificate - City Of Colorado Springs Sales Tax Division - 2011 Page 2