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The Massachusetts Exempt Use Certificate, known as Form ST-12, plays a critical role for businesses and individuals seeking to avoid sales or use tax on specific purchases. This form certifies that the property being acquired will be utilized for exempt purposes as defined under Massachusetts General Laws. Key exemptions include materials used in manufacturing, agricultural production, and commercial fishing, among others. Additionally, the form addresses exemptions for prewritten computer software that is available for use in multiple tax jurisdictions. It is essential for both vendors and purchasers to understand the proper use of this certificate, as it shifts the burden of proof regarding tax exemption from the vendor to the purchaser. The completion of this form requires detailed information, including the description of the property and the intended use, ensuring compliance with tax regulations. Failure to adhere to these guidelines could result in significant penalties, making it imperative to handle the ST-12 form with care and accuracy.
Ma Exempt St 12 Example
Form
Exempt Use Certificate
Rev. 11/13
Massachusetts
Department of
Revenue
Vendor’s name
Address |
City/Town |
State |
Zip |
I hereby certify that the property herein described is purchased or leased for the following indicated purpose and is exempt from the sales or use tax pursuant to Massachusetts General Laws (MGL), Chapter 64H, section 6(i), (j), (r), (s) or (dd), or is prewritten computer software that qualifies for Multiple Points of Use treatment.
1 The materials, tools or fuel will become an ingredient or component part of tangible personal property to be sold.
2A The materials, tools or fuel will be consumed and used directly and exclusively in, or B The machinery, and/or replacement parts thereof, will be used directly and exclusively in 1 agricultural production
2 commercial fishing
3 industrial plant in the actual manufacture, conversion or processing of tangible personal property to be sold 4 publishing a newspaper
5 operation of commercial radio broadcasting or television transmission
6 furnishing power to an industrial manufacturing plant
7 furnishing gas, water, steam or electricity when delivered to consumers through mains, lines or pipes
8 research and development by a manufacturing or research and development corporation under MGL, Ch. 63, sec. 38C or 42B
9 production of animals for research, testing or other purposes to promote human or animal
10 other (explain)
3 Sales of equipment used directly in solar,
4 The fuel will be used in the operation of aircraft or railroads.
5 The heating fuel will be consumed or used directly and exclusively in heating an industrial plant where at least 75% of the building, location or premises is used for the actual manufacture of tangible personal property to be sold.
6 Gas Steam Electricity (check one) will be consumed and used directly and exclusively in the actual manufacture of tangible personal property to be sold or in the heating of the industrial plant provided at least 75% of the metered energy is used for the combination of such manu- facturing or heating of the manufacturing area.
7 The tangible personal property is a production expense directly incurred in the production of a motion picture by a qualifying motion picture produc- tion company and clearly and demonstrably incurred in the Commonwealth.
8 The tangible personal property is a production expense directly incurred in the production of a motion picture by an accredited film school student, clearly and demonstrably incurred in the Commonwealth and related to a school film project
9 Multiple Points of Use Certificate. The prewritten computer software will be concurrently available for use in multiple tax jurisdictions. The pur- chaser agrees to remit apportioned use tax to Massachusetts.
10 Pesticides purchased by a person licensed or certified as a pesticide applicator by the Dept. of Agricultural Resources under MGL, Ch. 132B.
Description of property (complete for any exemption claimed in line 1 or 2; attach statement if necessary)
Service location(s) of qualified property (complete for any exemption claimed in line 6)
Account number(s)
Full liability is hereby assumed for the payment of any sales or use tax due in the event that the property purchased is used for any purpose other than that herein certified. This certificate shall be considered a part of each order unless revoked in writing. All purchase orders under this certificate will clearly indicate that they represent exempt use purchases.
Signed under the penalties of perjury.
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Federal Identification number (if applicable) |
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Check applicable box: Single purchase certificate Blanket certificate
Form
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
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
Notice to Purchasers
This form is not to be used by an exempt organization (use Form
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
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)
printed on recycled paper
File Breakdown
| Fact Name | Description |
|---|---|
| Purpose of Form | The ST-12 form is used to certify that certain purchases are exempt from sales or use tax in Massachusetts. |
| Governing Laws | This form is governed by Massachusetts General Laws (MGL), Chapter 64H, sections 6(i), (j), (r), (s), and (dd). |
| Eligible Uses | Property purchased may be exempt if used for agricultural production, commercial fishing, or manufacturing tangible personal property, among other purposes. |
| Multiple Points of Use | The form includes a section for prewritten software that will be used in multiple tax jurisdictions, allowing for apportioned use tax to be remitted. |
| Vendor Responsibilities | Vendors must ensure the ST-12 form is completed correctly and signed before accepting it to relieve them from tax collection responsibilities. |
| Contractor Use | Contractors can use the ST-12 form when purchasing property for exempt purposes related to fulfilling contracts, provided they can demonstrate the exempt use. |
Guide to Using Ma Exempt St 12
Completing the MA Exempt ST-12 form requires careful attention to detail. Once filled out, this form serves as a certificate to confirm that certain purchases are exempt from sales or use tax in Massachusetts. It is essential to ensure accuracy to avoid potential tax liabilities.
- Begin by entering the vendor’s name in the designated space.
- Fill in the address of the vendor, including city or town, state, and zip code.
- In the certification section, check the appropriate box that corresponds to the reason for the exemption. Options include:
- The property will become an ingredient or component of tangible personal property to be sold.
- The property will be consumed directly in agricultural production, commercial fishing, or manufacturing.
- Sales of equipment for renewable energy systems.
- Fuel for aircraft or railroads.
- Heating fuel for industrial plants.
- Production expenses for motion pictures.
- Multiple Points of Use for prewritten software.
- Pesticides purchased by licensed applicators.
- Provide a description of the property for any exemptions claimed in lines 1 or 2. If necessary, attach an additional statement.
- If claiming an exemption for gas, steam, or electricity, complete the section for service location(s) and include the relevant utility account numbers.
- Assume full liability for any sales or use tax due if the property is used for any purpose other than what is certified.
- Sign the form under the penalties of perjury, including your title and name of the company.
- Provide the date of signing and include the federal identification number if applicable.
- Indicate whether this is a single purchase certificate or a blanket certificate by checking the appropriate box.
Get Answers on Ma Exempt St 12
What is the purpose of the MA Exempt ST-12 form?
The MA Exempt ST-12 form serves as a certificate that allows purchasers to claim an exemption from sales or use tax on certain tangible personal property. This form is utilized when the property being purchased is intended for specific exempt purposes outlined in Massachusetts General Laws, such as agricultural production, commercial fishing, or manufacturing. By presenting this form to the vendor, the purchaser certifies that the property will be used in a manner that qualifies for exemption.
Who can use the MA Exempt ST-12 form?
Any individual or business that intends to purchase tangible personal property for exempt use can utilize the MA Exempt ST-12 form. This includes contractors, manufacturers, and agricultural producers, among others. However, it is important to note that exempt organizations should use Form ST-5 instead, and the ST-12 form is not applicable for claiming exemptions for containers used to transport food or drink off premises.
What information is required to complete the form?
To properly complete the MA Exempt ST-12 form, the following information is typically required:
- Vendor's name and address.
- Purchaser's name, address, and federal identification number, if applicable.
- A description of the property being purchased.
- The specific exemption category being claimed, such as agricultural production or industrial manufacturing.
- For certain exemptions, service location(s) and utility account numbers may also need to be provided.
Completing the form accurately ensures that the vendor can accept it in good faith, relieving them of the burden of proof regarding the tax exemption.
What happens if the property is used for a non-exempt purpose?
If the property purchased using the MA Exempt ST-12 form is later used for a purpose that does not qualify for exemption, the purchaser is responsible for paying the applicable sales or use tax. The purchaser assumes full liability for any taxes due if the property is misused. It is crucial for purchasers to adhere to the terms outlined in the certificate to avoid potential penalties.
How can vendors ensure they are compliant when accepting the form?
Vendors should ensure that the MA Exempt ST-12 form is fully completed and signed before accepting it. They must verify that the purchaser intends to use the property in an exempt manner. Keeping a record of the certificate is essential, as it serves as proof that the vendor acted in good faith. If a vendor accepts an incomplete or improperly filled-out form, they may still be liable for the tax if the exemption is later challenged.
Common mistakes
When filling out the Massachusetts Exempt ST-12 form, individuals often make several common mistakes that can lead to complications. One frequent error is failing to provide a complete and accurate description of the property being purchased. This detail is crucial for verifying the exemption. Without a clear description, vendors may not accept the certificate, and the purchaser may find themselves liable for sales tax.
Another common mistake is neglecting to check the appropriate box for either a single purchase certificate or a blanket certificate. This selection determines whether the exemption applies to a one-time purchase or multiple purchases over a specified period. Misunderstanding this can result in improper tax treatment, causing confusion and potential penalties.
Additionally, many individuals overlook the requirement to provide service location details when claiming exemptions related to gas, steam, or electricity. The absence of this information can invalidate the exemption claim. It is essential to include utility account numbers and specific service locations to ensure compliance with the regulations.
People also frequently forget to sign the form. A signature is a vital component, as it certifies that the purchaser understands the penalties for misuse of the certificate. Without a signature, the form may be deemed incomplete, leading to tax liabilities that could have been avoided.
Lastly, some individuals fail to understand the implications of using the form for non-qualifying purchases. The ST-12 form is strictly for exempt uses as defined by Massachusetts law. Using it for ineligible items can result in significant fines and penalties. It is important to carefully review the list of exempt purposes to ensure compliance and avoid unnecessary legal issues.
Documents used along the form
The Massachusetts Exempt ST-12 form is essential for individuals or businesses seeking to claim an exemption from sales or use tax on certain purchases. However, it is often accompanied by other important documents that help clarify and support the exemption claims. Below is a list of these documents, each serving a specific purpose.
- Form ST-5: Sales Tax Exempt Certificate - This form is used by exempt organizations, such as nonprofits, to certify their tax-exempt status when making purchases.
- Form ST-12EC: Exempt Use Certificate for Containers - This certificate is specifically for claiming exemptions on containers used to transport food or drink off premises.
- Form ST-13: Small Business Energy Exemption Certificate - Small businesses can use this form to claim exemptions on certain energy purchases, promoting cost savings in their operations.
- Multiple Points of Use Certificate - This document is for prewritten computer software that will be used in multiple tax jurisdictions, ensuring proper tax reporting and remittance.
- Purchase Orders - These documents indicate that the purchase is for exempt use, clearly stating the intention behind the transaction.
- Utility Account Numbers - Required when claiming exemptions for gas, steam, or electricity, these numbers help identify the service locations of the qualified property.
- Additional Statements - If more space is needed to describe the exempt property or service locations, an additional statement can be attached to provide necessary details.
Understanding the various forms and documents associated with the Massachusetts Exempt ST-12 form is crucial for ensuring compliance and maintaining tax exemptions. Proper documentation not only safeguards against potential tax liabilities but also streamlines the purchasing process for exempt entities.
Similar forms
- Form ST-5: This form is used by exempt organizations to claim sales tax exemption. Like the ST-12, it certifies that the purchase is exempt from sales tax, but it is specifically for organizations recognized as tax-exempt.
- Form ST-12EC: This form is for claiming exemptions for containers used to transport food or drink off premises. Similar to the ST-12, it certifies that the item is exempt, but focuses on specific containers rather than general purchases.
- Form ST-13: This form is used to claim the small business energy exemption. It is similar to the ST-12 in that it addresses tax exemptions, but it is specifically tailored for small businesses seeking energy-related exemptions.
- Multiple Points of Use Certificate: This certificate is for prewritten computer software available in multiple jurisdictions. It shares similarities with the ST-12 by certifying tax exemption, but it is specific to software usage across different tax areas.
- Form ST-2: This form is used for claiming a sales tax exemption on purchases made by certain nonprofit organizations. Like the ST-12, it requires certification of the exempt purpose of the purchase.
- Form ST-4: This form is for claiming exemptions on purchases of materials for manufacturing. It is similar to the ST-12 as both forms certify that the materials will be used in an exempt manner related to manufacturing.
- Form ST-8: This form is used for claiming exemptions for sales of machinery and equipment. Similar to the ST-12, it certifies that the equipment will be used in a manner that qualifies for tax exemption.
Dos and Don'ts
When filling out the Massachusetts Exempt ST-12 form, it is important to follow specific guidelines to ensure compliance and accuracy. Below is a list of things you should and should not do when completing this form.
- Do ensure that all required fields are completed accurately, including the vendor's name and address.
- Do provide a clear description of the property for which the exemption is being claimed.
- Do indicate the specific purpose for which the property will be used, referencing the appropriate exemptions under Massachusetts General Laws.
- Do sign and date the form to validate the exemption claim.
- Do retain a copy of the completed form for your records, as it may be required for future audits.
- Don't leave any sections blank; incomplete forms may be rejected.
- Don't use this form for purposes other than those specified; ensure that the claimed exemption is applicable.
- Don't submit the form if the property will be used for non-exempt purposes, as this may lead to tax liability.
- Don't forget to provide utility account numbers and service locations if applicable to the exemption claimed.
Misconceptions
Understanding the Massachusetts Exempt Use Certificate, Form ST-12, is essential for both vendors and purchasers. However, several misconceptions can lead to confusion about its proper use. Here are six common misunderstandings:
- Misconception 1: The ST-12 form is only for certain types of businesses.
- Misconception 2: All purchases qualify for exemption with this form.
- Misconception 3: Vendors do not need to verify the information on the ST-12 form.
- Misconception 4: Once the ST-12 form is submitted, it cannot be revoked.
- Misconception 5: The ST-12 form can be used for any type of exemption.
- Misconception 6: Using the ST-12 form guarantees that no tax will be owed.
This form can be used by various types of purchasers, including contractors and businesses in agriculture, manufacturing, and research. It is not limited to specific industries.
Not every purchase qualifies for exemption. The property must be used in a manner that meets specific criteria outlined in Massachusetts law.
Vendors must ensure that the form is properly completed and signed. Accepting an incomplete or improperly filled-out form can lead to tax liabilities for the vendor.
A purchaser can revoke the certificate in writing if they no longer qualify for the exemption. It is important to communicate this change to vendors.
This form is specific to certain exemptions related to tangible personal property. Other exemptions, such as those for exempt organizations, require different forms.
While the form provides a basis for claiming an exemption, if the property is used for a non-exempt purpose, the purchaser is responsible for any applicable sales or use tax.
By clarifying these misconceptions, both purchasers and vendors can navigate the process of using the ST-12 form more effectively, ensuring compliance with Massachusetts tax laws.
Key takeaways
When filling out and using the Massachusetts Exempt ST-12 form, it is essential to understand the following key points:
- Purpose of the Form: The ST-12 form certifies that certain purchases are exempt from sales or use tax under Massachusetts law. This includes items used in manufacturing, agriculture, and certain energy-related purchases.
- Completing the Form: Ensure all required fields are filled out accurately. This includes the vendor's name, address, and a detailed description of the property being purchased. Incomplete forms may lead to issues with tax exemption.
- Types of Exemptions: The form covers various exemptions, such as those for agricultural production, commercial fishing, and specific energy uses. Familiarize yourself with the applicable exemptions to ensure compliance.
- Vendor Responsibilities: Vendors must verify that the form is completed correctly and signed before accepting it. This protects them from liability if the property is not used as certified.
- Consequences of Misuse: Using the ST-12 form for non-exempt purchases can result in significant penalties, including fines and potential criminal charges. Always ensure that the property qualifies for the claimed exemption.
Understanding these points will help ensure proper use of the ST-12 form and compliance with Massachusetts tax laws.