Looking for a Ct Tax Exempt Form Templates? Download it for free!

Department of Revenue Services

State of Connecticut

Taxpayer Services Division

25 Sigourney Street

Hartford CT 06106-5032

CERT-123

(Rev. 01/05)

Blanket Certificate for Exempt Qualifying Purchases of Meals or Lodging

by an Exempt Organization or Qualifying Governmental Agency

General Purpose: Exempt organizations or qualifying governmental

qualifying governmental agency, no attachment is required. If DRS concludes

agencies should use this certificate to establish that their purchases of meals

that qualifying exempt purchases are being made, the certificate, with DRS

or lodging are exempt from sales and use taxes. This certificate may be used

official approval noted, will be returned to the exempt organization or qualifying

only if these four conditions are met:

governmental agency. The exempt organization or qualifying governmental

agency must then provide the approved CERT-123 to the retailer of meals or

1. The retailer directly invoices and charges the exempt organization or

lodging. Keep a copy of this certificate, documents attached, and records that

qualifying governmental agency for the meals or lodging;

substantiate the information on this certificate for at least six years from the

2. The exempt organization or qualifying governmental agency directly pays

date it is issued.

the retailer with a check drawn on its own account or with a credit card

issued in its own name;

Events That Qualify for Refund Only: If the exempt organization or

qualifying governmental agency will be paying (and will not be reimbursed, in

3. The exempt organization or qualifying governmental agency is not

whole or in part) for the meals or lodging of some of the attendees but will be

reimbursed, in whole or in part, by donation or otherwise, for its payment

reimbursed in whole or in part for the meals or lodging of others, a preapproved

for the meals or lodging by those consuming the meals or lodging; and

exemption will not be issued. The exempt organization or qualifying

4. The purchase of the meals or lodging occurs before the expiration date

governmental agency must pay tax on all the meals or lodging at the time of

specified on the blanket certificate.

the purchase. However, DRS will refund the tax on those meals or lodging

Statutory Authority: Conn. Gen. Stat. §12-412(1)(A), (8) and (94).

that were paid for by the exempt organization or qualifying governmental

agency for which it was not reimbursed. The exempt organization or qualifying

Credit Card Purchases: If a credit card is used to pay the retailer of meals

governmental agency must file, and DRS must approve, CERT-122, Refund

or lodging, the card must be issued in the name of the exempt organization or

of Sales Tax Paid on Purchases of Meals or Lodging by Exempt Entities. The

qualifying governmental agency. The credit card must be used exclusively to

exempt organization or qualifying governmental agency is not eligible for

make purchases for the use of the exempt organization or qualifying

refund of tax paid on those meals or lodging for which it received full or partial

governmental agency (not for the convenience of its officers, employees or

reimbursement. See Policy Statement 2003(4), Purchases of Meals or

members). The credit card charges must be paid by a check drawn on the

Lodging by Exempt Entities, for additional information.

organization’s or agency’s own checking account.

Example 1: B, an exempt organization, sponsors a dinner at a restaurant to

Nonqualifying Purchases: This certificate may not be used (and tax must

honor one of its members. The restaurant charges B $50 per meal and B sells

be paid) on the purchase of meals or lodging not meeting all four of the

tickets for $50 per person. The honoree and members of the immediate

conditions above. Nonqualifying purchases include fund raisers where those

family attend as guests of the exempt organization. B must pay sales tax on

who attend are charged or are required to make any payment and seminars or

all meals purchased. It may, however, complete and file CERT-122 to claim

conferences where meals or lodging are provided at no extra charge to those

a refund of the taxes paid only on meals consumed by the honoree and

paying the conference or seminar registration fee.

members of the immediate family.

However, a qualifying exempt organization may purchase meals exempt from

Example 2: C, an exempt organization, sponsors a retirement dinner at a

tax using CERT-119, Purchases of Tangible Personal Property and Services

restaurant to honor one of its employees. The restaurant charges C $60 per

by Qualifying Exempt Organizations, or CERT-134, Exempt Purchases by

meal. C sells tickets for $50 per person and pays the $10 difference to the

Qualifying Governmental Agencies, and does not have to get prior approval

restaurant from its own funds. C must pay sales tax on the full price of all

from the Department of Revenue Services (DRS), when the organization will

meals purchased. Because the organization received partial reimbursement

resell the meals at one of five fundraising or social events per year that is

for all of the meals, C is not eligible for a refund of any of the tax paid.

exempt from tax under Conn. Gen. Stat. §12-412(94). See Special Notice

Instructions for Retailer of Meals or Lodging: Accept this certificate

98(11), Exemption From Sales and Use Taxes of Sales by Nonprofit

Organizations at Fundraising or Social Events.

only if you directly invoice and charge the exempt organization or qualifying

governmental agency for the meals or lodging. Accept the certificate only if

Purchases Not Requiring Preapproval: The federal government recently

you are directly paid by the exempt organization or qualifying governmental

implemented the “GSA SmartPay” program, which uses four categories of

agency with a check drawn on the exempt organization’s or qualifying

credit cards: Fleet, Purchase, Travel, and Integrated cards. Federal employees

governmental agency’s own checking account or with a credit card issued in

may purchase meals and lodging tax exempt by using certain GSA SmartPay

the organization’s or agency’s name (not in the name of one of its members,

cards when the purchases are billed to and paid by the federal government.

employees or officers). Cash payments will not satisfy this condition,

U.S. government agencies making tax-exempt purchases of meals and lodging

regardless of the cost of the meals or lodging.

using GSA SmartPay cards are not required to get preapproval for these

purchases from DRS and are not required to provide the retailer with

Acceptance of this certificate, when properly completed and with DRS official

CERT-112, Exempt Purchases of Meals or Lodging by Exempt Entities. See

approval noted, relieves the retailer from the burden of proving the sale of

Policy Statement 2000(1.1), Retailer’s Acceptance of U.S. Government “GSA

meals or lodging is not subject to sales and use taxes. This certificate is valid

SmartPay” Credit Card for Exempt Purchases.

only if taken in good faith from an exempt organization or qualifying

governmental agency.

Instructions for the Purchaser: An officer of an exempt organization or

qualifying governmental agency must complete and sign this certificate and

Keep a copy of this certificate, the attached documents, and bills or invoices

submit it to DRS for qualifying exempt purchases of meals or lodging during

to the purchaser for at least six years from the date the meals or lodging were

a one year period. If the purchaser is an exempt organization, it must attach

purchased. The bills, invoices or records covering the purchase made under

either a copy of its I.R.C. §501(c)(3) or (13) determination letter issued by

this certificate must be marked “Exempt Under CERT-123” to indicate an

the U.S. Treasury Department or, if it was issued an exemption permit by

exempt purchase has occurred.

DRS, enter its exemption permit number on CERT-123. If the purchaser is a

Form Cert-123 - Blanket Certificate For Exempt Qualifying Purchases Of Meals Or Lodging By An Exempt Organization Or Qualifying Governmental Agency

Related Articles

Related forms

Related Categories