Ma Form Exempt St 12 – Fill Out and Use This PDF

Form ST-12

Exempt Use Certificate

Rev. 11/13

Massachusetts

Department of

Revenue

General Information

Certain consumers may not be required to pay a sales tax if the property they purchase is to be used in a manner which exempts it from taxation.

If tangible personal property, including fuel, gas, steam or electric- ity is purchased and that purchase qualifies for an exemption from the sales or use tax, the purchaser may present an exempt use certificate to the vendor to certify that the property will be used in 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- dor, unless the vendor accepts from the purchaser a certificate declaring that the property is exempt from tax. The Multiple Points of Use Certificate claimed on line 9 is only applicable to prewritten computer software that will be concurrently available for use in multiple tax jurisdictions.

Notice to Vendors

The vendor must make sure that the certificate is completed prop- erly and signed before accepting it.

An exempt use certificate relieves the vendor from the burden of proof only if it is taken in good faith from a purchaser who, at the time of purchase, intends to use the property in an exempt man- ner, or is unable to ascertain at the time of purchase that it will be used in an exempt manner.

A Multiple Points of Use Certificate claimed on line 9 relieves the vendor from the obligation to collect, pay, or remit the applicable tax on sales of prewritten software.

The exemption claimed on line 10 for sales to a person licensed or certified as a pesticide applicator by the Department of Agricultural Resources under MGL, Ch. 132B only applies to sales of pesticides, including insecticides, herbicides, fungicides, miticides and all mate- rials registered with the Environmental Protection Agency as pesti- cides under Federal Insecticide, Fungicide and Rodenticide Act as well as other pesticides commonly regarded in the same category and for the same purpose. See TIR 08-8 for more information.

The vendor must retain this certificate as part of his/her tax rec- ords. For further information regarding the requirements for retain- ing records, see Massachusetts Regulation, 830 CMR 62C.25.1.

Notice to Contractors

This form may be used by a contractor when purchasing or leasing tangible personal property from a vendor in connection with fulfilling a contract with its customer if the property will be used for one of the exempt uses described in Massachusetts General Laws (MGL) chapter 64H, section 6(r) or (s), which include the following: use di- rectly and exclusively in an industrial plant in the actual manufac- 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.

A contractor purchasing property exempt under MGL chapter 64H, section 6(r) or (s), may sign and present this form to its vendor. The contractor bears the burden of proof of demonstrating on audit that the items purchased are or will be used in an exempt manner. In the event that the items do not qualify for exemption under section 6(r) or (s), the contractor will be liable for the tax. An exempt use cer- tificate furnished by the contractor’s customer to the contractor will not relieve the contractor from liability. See DD 07-6, “Exemptions under G.L. c. 64H, sec. 6(r) and sec. 6(s)” for further information.

Notice to Purchasers

This form is not to be used by an exempt organization (use Form ST-5), or to claim the exemption for containers used to transport food or drink off premises (use Form ST-12EC), or to claim the small business energy exemption (use Form ST-13). For further information on the proper form to use to claim an exemption for the purchase of utilities and fuel see DD 92-3.

If a purchaser makes any use of the property other than an exempt use, such property will be subject to the Massachusetts sales or use tax, as of the time the property is first used.

For any exemption claimed in line 1 or 2, the purchaser must pro- vide a description of the exempt property. For any exemption claimed in line 6 for the purchase of gas, steam or electricity, the purchaser must provide the service locations of the qualified prop- erty and utility account numbers. Attach an additional statement if more space is needed.

A purchaser submitting a Multiple Points of Use Certificate by checking line 9 agrees to report and remit the applicable sales or use tax to the jurisdictions where the software will be used, using any reasonable, but consistent and uniform, method of apportion- ment that is supported by the purchaser’s business records, as they exist at the time a return is filed. See TIR 05-15.

If at any time a business that has presented this certificate ceases to qualify for the exemption, it must revoke in writing the Form ST- 12 it has given to its vendor(s).

For further information regarding the acceptance or use of exempt use certificates see Massachusetts Regulation, 830 CMR 64H.8.1.

Warning: Willful misuse of this certificate may result in crimi- nal tax evasion penalties of up to one year in prison and $10,000 ($50,000 for corporations) in fines.

If you have any questions about the acceptance or use of this cer- tificate, please contact: Massachusetts Department of Revenue,

Customer Service Bureau, PO Box 7010, Boston, MA 02204; (617) 887-MDOR, or toll-free in-state 1-800-392-6089.