Form St-12 - Exempt Use Certificate (Page 2 of 2) in pdf

Form ST-12 Instructions

A contractor purchasing property exempt under MGL chapter 64H,

section 6(r) or (s), may sign and present this form to its vendor. The

Certain consumers may not be required to pay a sales tax if the

General Information

contractor bears the burden of proof of demonstrating on audit that

property they purchase is to be used in a manner which exempts

the items purchased are or will be used in an exempt manner. In the

it from taxation.

event that the items do not qualify for exemption under section 6(r)

If tangible personal property, including fuel, gas, steam or electric-

or (s), the contractor will be liable for the tax. An exempt use cer-

ity is purchased and that purchase qualifies for an exemption from

tificate furnished by the contractor’s customer to the contractor will

the sales or use tax, the purchaser may present an exempt use

not relieve the contractor from liability. See DD 07-6, “Exemptions

certificate to the vendor to certify that the property will be used in

under G.L. c. 64H, sec. 6(r) and sec. 6(s)” for further information.

an exempt manner. The burden of proving that a sale of tangible

personal property by any vendor is exempt from tax is on the ven -

This form is not to be used by an exempt organization (use Form

dor, unless the vendor accepts from the purchaser a certificate

Notice to Purchasers

ST-5), or to claim the exemption for containers used to transport

declaring that the property is exempt from tax. The Multiple Points

food or drink off premises (use Form ST-12EC), or to claim the

of Use Certificate claimed on line 9 is only applicable to prewritten

computer software that will be concurrently available for use in

small business energy exemption (use Form ST-13). For further

information on the proper form to use to claim an exemption for

multiple tax jurisdictions.

the purchase of utilities and fuel see DD 92-3.

The vendor must make sure that the certificate is completed prop-

If a purchaser makes any use of the property other than an exempt

Notice to Vendors

use, such property will be subject to the Massachusetts sales or

erly and signed before accepting it.

use tax, as of the time the property is first used.

An exempt use certificate relieves the vendor from the burden of

For any exemption claimed in line 1 or 2, the purchaser must pro-

proof only if it is taken in good faith from a purchaser who, at the

vide a description of the exempt property. For any exemption

time of purchase, intends to use the property in an exempt man-

claimed in line 6 for the purchase of gas, steam or electricity, the

ner, or is unable to ascertain at the time of purchase that it will be

purchaser must provide the service locations of the qualified prop-

used in an exempt manner.

erty and utility account numbers. Attach an additional statement if

A Multiple Points of Use Certificate claimed on line 9 relieves the

more space is needed.

vendor from the obligation to collect, pay, or remit the applicable tax

on sales of prewritten software.

A purchaser submitting a Multiple Points of Use Certificate by

checking line 9 agrees to report and remit the applicable sales or

The exemption claimed on line 10 for sales to a person licensed or

use tax to the jurisdictions where the software will be used, using

certified as a pesticide applicator by the Department of Agricultural

any reasonable, but consistent and uniform, method of apportion-

Resources under MGL, Ch. 132B only applies to sales of pesticides,

ment that is supported by the purchaser’s business records, as

including insecticides, herbicides, fungicides, miticides and all mate-

they exist at the time a return is filed. See TIR 05-15.

rials registered with the Environmental Protection Agency as pesti-

If at any time a business that has presented this certificate ceases

cides under Federal Insecticide, Fungicide and Rodenticide Act as

to qualify for the exemption, it must revoke in writing the Form ST-

well as other pesticides commonly regarded in the same category

12 it has given to its vendor(s).

and for the same purpose. See TIR 08-8 for more information.

For further information regarding the acceptance or use of exempt

The vendor must retain this certificate as part of his/her tax rec -

use certificates see Massachusetts Regulation, 830 CMR 64H.8.1.

ords. For further information regarding the requirements for retain-

ing records, see Massachusetts Regulation, 830 CMR 62C.25.1.

Warning: Willful misuse of this certificate may result in crimi-

This form may be used by a contractor when purchasing or leasing

Notice to

ontractors

nal tax evasion penalties of up to one year in prison and

tangible personal property from a vendor in connection with fulfilling

$10,000 ($50,000 for corporations) in fines.

If you have any questions about the acceptance or use of this cer-

a contract with its customer if the property will be used for one of

tificate, please contact: Massachusetts Department of Revenue,

the exempt uses described in Massachusetts General Laws (MGL)

chapter 64H, section 6(r) or (s), which include the following: use di-

Customer Service Bureau, PO Box 7010, Boston, MA 02204;

rectly and exclusively in an industrial plant in the actual manufac-

(617) 887-MDOR, or toll-free in-state 1-800-392-6089.

ture of tangible personal property to be sold; in the furnishing of

power to an industrial manufacturing plant; in the furnishing of gas,

water, steam or electricity when delivered to consumers through

mains, lines or pipes; in research and development by a manufac-

turing corporation or research and development corporation; in ag -

ricultural production; in commercial fishing.

printed on recycled paper

Form St-12 - Exempt Use Certificate Page 2

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