Section 12-410 - Presumptions and resale certificates(a) For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax it shall be presumed that all receipts are gross receipts that are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property or service constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407 is not a sale at retail is upon the person who makes the sale unless such person takes in good faith from the purchaser a certificate to the effect that the property or service is purchased for resale.(b) The certificate relieves the seller from the burden of proof only if taken in good faith from a person who is engaged in the business of selling tangible personal property or services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407 and who holds the permit provided for in section 12-409 and who, at the time of purchasing the tangible personal property or service: (1) Intends to sell it in the regular course of business; (2) intends to utilize such personal property in the delivery of landscaping or horticulture services, provided the total sale price of all such landscaping and horticulture services are taxable under this chapter; or (3) is unable to ascertain at the time of purchase whether the property or service will be sold or will be used for some other purpose. The burden of establishing that a certificate is taken in good faith is on the seller. A certificate to the effect that property or service is purchased for resale taken from the purchaser by the seller shall be deemed to be taken in good faith if the tangible personal property or service purchased is similar to or of the same general character as property or service which the seller could reasonably assume would be sold by the purchaser in the regular course of business.(c) The certificate shall be signed by and bear the name and address of the purchaser, shall indicate the number of the permit issued to the purchaser and shall indicate the general character of the tangible personal property or service sold by the purchaser in the regular course of business. The certificate shall be substantially in such form as the commissioner prescribes.(d)(1) If a purchaser who gives a certificate makes any use of the service or property other than retention, demonstration or display while holding it for sale in the regular course of business, the use shall be deemed a retail sale by the purchaser as of the time the service or property is first used by the purchaser, and the cost of the service or property to the purchaser shall be deemed the gross receipts from such retail sale.(2) Notwithstanding the provisions of subdivision (1) of this subsection, any use by a certificated air carrier of an aircraft for purposes other than retention, demonstration or display while holding it for sale in the regular course of business shall not be deemed a retail sale by such carrier as of the time the aircraft is first used by such carrier, irrespective of the classification of such aircraft on the balance sheet of such carrier for accounting and tax purposes.(e)(1) For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax, a sale of any service described in subdivision (37) of subsection (a) of section 12-407 shall be considered a sale for resale only if the service to be resold is an integral, inseparable component part of a service described in said subdivision that is to be subsequently sold by the purchaser to an ultimate consumer. The purchaser of the service for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the service was purchased and to whom the service was sold,(B) the purchase price of the service, and (C) the nature of the service to demonstrate that the services were an integral, inseparable component part of a service described in subdivision (37) of subsection (a) of section 12-407 that was subsequently sold to a consumer.(2) Notwithstanding the provisions of subdivision (1) of this subsection, no sale of a service described in subdivision (37) of subsection (a) of section 12-407 by a seller shall be considered a sale for resale if such service is to be subsequently sold by the purchaser to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of section 12-412.(3) For purposes of subdivision (1) of this subsection, the sale of canned or prewritten computer software shall be considered a sale for resale if such software is subsequently sold, licensed or leased unaltered by the purchaser to an ultimate consumer. The purchaser of the software for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the software was purchased and to whom the software was sold, licensed or leased,(B) the purchase price of the software, and (C) the nature of the transaction with the ultimate consumer to demonstrate that the same software was provided unaltered to the ultimate consumer.(4) For purposes of subdivision (1) of this subsection, the sale of digital goods shall be considered a sale for resale if the digital goods are subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part, as an integral, inseparable component part of a digital good or service described in subdivision (26), (27), (37) or (39) of subsection (a) of section 12-407 by the purchaser of the digital goods to an ultimate consumer. The purchaser of the digital goods for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the digital goods were purchased and to whom the services described in subdivision (26), (27), (37) or (39) of subsection (a) of section 12-407 was sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part,(B) the purchase price of the digital goods, and (C) the nature of the transaction with the ultimate consumer.(5) For purposes of subdivision (1) of this subsection, the sale of services described in subdivision (37) of subsection (a) of section 12-407 shall be considered a sale for resale if such services are subsequently resold as an integral inseparable component part of digital goods sold by the purchaser of the services to an ultimate consumer of the digital goods. The purchaser of the services described in subdivision (37) of subsection (a) of section 12-407 for resale shall maintain, in such form as the commissioner requires, records that substantiate: (A) From whom the services described in subdivision (37) of subsection (a) of section 12-407 were purchases and to whom the digital goods were sold, licensed, or leased,(B) the purchase prices of the services described in subdivision (37) of subsection (a) of section 12-407, and (C) the nature of the transaction with the ultimate consumer.(f) For the purpose of the proper administration of this chapter and to prevent evasion of the sales tax, no sale of any service by a seller shall be considered a sale for resale if such service is to be subsequently sold by the purchaser, without change, to an ultimate consumer that is affiliated with the purchaser in the manner described in subparagraph (A) of subdivision (62) of section 12-412.Conn. Gen. Stat. § 12-410
(1949 Rev., S. 2094; P.A. 75-213, S. 24, 25, 53; P.A. 85-240, S. 3, 6; P.A. 88-6, S. 3; P.A. 90-148, S. 22, 34; June Sp. Sess. P.A. 91-3 , S. 112 , 168 ; May Sp. Sess. P.A. 92-17 , S. 45 , 59 ; P.A. 93-74 , S. 64 , 67 ; P.A. 94-21 , S. 1 , 2 ; P.A. 95-359 , S. 10 , 19 ; P.A. 97-243 , S. 18 , 67 ; P.A. 00-174 , S. 5 , 83 ; P.A. 02-103 , S. 6 ; P.A. 03-225 , S. 7 ; P.A. 18-26 , S. 16 .)
Amended by P.A. 22-0110, S. 19 of the Connecticut Acts of the 2022 Regular Session, eff. 10/1/2022.Amended by P.A. 19-0117, S. 321 of the Connecticut Acts of the 2019 Regular Session, eff. 10/1/2019.Amended by P.A. 18-0026, S. 16 of the Connecticut Acts of the 2018 Regular Session, eff. 10/1/2018. Plaintiff procured property for government and any ownership by plaintiff could have endured only for theoretical instant, held not taxable under section. 145 Conn. 176 . Cited. 174 Conn. 51 ; 183 Conn. 566 ; 198 Conn. 413 ; 211 Conn. 246 ; 216 Conn. 17 ; 231 Conn. 315 ; 238 Conn. 571 . Cited. 18 Conn.App. 434 ; 43 CA 598 . When day book records adequate proof of nature of sale. 30 Conn.Supp. 309 . Cited. 43 CS 253 .