Tangible personal property purchased and paid for by a semipublic institution which has obtained a certificate of exemption is exempt from the District sales and use tax if the property is for use and consumption in maintaining, operating, and conducting the activities of the institution.
The right to exemption does not apply in any of the following circumstances:
The certificate and the exemption number on the certificate shall not be used by any other person or organization to make purchases for or on their behalf or for the purpose of making a donation to the institution.
A semipublic institution regularly engaged in making sales at retail is required to report and pay to the District the tax on those sales and collect reimbursement for the tax from purchasers.
A certificate of exemption shall not be used by an institution to make purchases of property for resale.
Purchases for resale shall be made by using certificates of resale which enables the institution to make the purchases without payment of the tax to the supplier.
To be entitled to use certificates of resale, an institution shall first file an application for certificate of registration.
Failure on the part of a semipublic institution to exercise care in the use of its exemption certificate may result in revocation of the certificate.
The following are examples of purchases of property or services which are not purchases of property or services for use or consumption in the operation, maintenance, and conduct of semipublic institutions, whether paid for directly from the funds of semipublic institutions (or other person) is required to pay the tax on the sale in the same manner as any other person:
In the event that the exempt organizations make purchases of property or services as described in this section without payment of the tax, such organizations shall be directly liable to the District for payment of the tax.
D.C. Mun. Regs. tit. 9, r. 9-418