48-8-38. Burden of proof on seller as to taxability; certificate that property purchased for resale; proof of claimed exemption.

All gross sales of a retailer are subject to the tax imposed by this article until the contrary is established. The burden of proving that a sale of tangible personal property is not a sale at retail shall be upon the person who makes the sale unless such person, in good faith, takes from the purchaser a certificate stating that the property is purchased for resale or is otherwise tax exempt.#

The certificate relieves the seller from the burden of proof as provided in subsection (a) of this Code section if the seller acquires from the purchaser a properly completed certificate taken in good faith. A properly completed certificate taken in good faith means a seller shall obtain a certificate:#

1. (1)

   That is fully completed, including, but not limited to, the name, address, sales tax number, and signature of the taxpayer when required;#

2. (2)

   In a form appropriate for the type of exemption claimed;#

3. (3)

   Claiming an exemption that was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;#

4. (4)

   Claiming an exemption that could be applicable to the item being purchased; and#

5. (5)

   Claiming an exemption that is reasonable for the purchaser’s type of business.#

The certificate relieves the seller from the burden of proof on sales for resale as provided in subsection (a) of this Code section if the seller acquires from the purchaser a properly completed certificate, taken in good faith, from a purchaser who:#

1. (1)

   Is engaged in the business of selling tangible personal property;#

2. (2)

   Has a valid sales tax registration number at the time of purchase and has listed his or her sales tax number on the certificate; and#

3. (3)

   At the time of purchasing the tangible personal property, the seller has no reason to believe that the purchaser does not intend to resell it in his or her regular course of business.#

The certificate shall include such information as is determined by the commissioner and is signed by the purchaser if it is a paper exemption certificate.#

A seller shall obtain the same information for proof of a claimed exemption regardless of the medium in which the transaction occurred.#

A sale of any specified digital product, other digital good, or digital code shall be considered a sale for resale if the specified digital product, other digital good, or digital code is subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part, as an integral, inseparable component part of a service or another such product, good, or code by the purchaser of the specified digital product, other digital good, or digital code to an ultimate consumer. The purchaser of the specified digital product, other digital good, or digital code for resale shall maintain records that substantiate such resale in a manner consistent with this subsection, as determined by the commissioner.#