The S 3C Vermont form serves as a Sales Tax Exemption Certificate specifically for contractors engaged in qualified exempt projects. This form allows contractors to purchase materials without incurring sales tax when working with qualifying organizations, such as certain nonprofits or government entities. To ensure compliance and take advantage of these exemptions, contractors must complete the form for each project and submit it to the seller.
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The S-3C Vermont form serves as a vital tool for contractors engaged in projects that qualify for sales tax exemptions. Designed specifically for use in the completion of qualified exempt projects, this form allows contractors to bypass sales tax on materials and supplies when working with certain exempt organizations. Notably, the form outlines the necessity for contractors to complete a separate exemption certificate for each project, ensuring compliance with Vermont tax regulations. It requires essential information such as the contractor's business name, federal ID number, and the details of the exempt organization involved. Additionally, the form accommodates both single and multiple purchases, streamlining the process for contractors who may need to acquire materials for ongoing projects. To qualify for the exemption, the project must be associated with specific organizations, including federal entities, state agencies, and registered 501(c)(3) nonprofits. The form also emphasizes the importance of good faith acceptance by sellers, detailing the conditions under which they can be relieved from tax liability. Understanding the S-3C form is crucial for contractors aiming to maximize their resources while adhering to state tax laws.
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Vermont Sales Tax Exemption Certificate
for
CONTRACTORS COMPLETING A QUALIFIED EXEMPT PROJECT
(listed below)
32 V.S.A. § 9743(1)-(4), § 9741(39)
FORM S-3C
Complete one exemption certificate for EACH project
To be filed with the SELLER, not with the VT Department of Taxes.
c Single Purchase - Enter Purchase Price $ _________________
c Multiple Purchase (effective for subsequent purchases.)
Name
Federal ID Number
CONTRACTOR
Business Name
For Individuals/Partnerships
Social Security
Number
Address
Telephone Number
City
State
ZIP Code
Seller's Name
SELLER
ORGANIZATION
Organization's Name
Exempt as:
EXEMPT
c501(c)(3) Registered in Vermont. Vermont Sales and Use Tax Account Number_________________________
cUnited States of America - Agency ____________________________________________________________
cState of Vermont or Subdivision - Name ________________________________________________________
cLocal Development Corporation covered by 10 V.S.A., Chapter 12
cQualifying Manufacturing Facility 32 V.S.A. § 9741(39)
Project
Starting Date
Approximate Completion Date
I certify that I have read and complied with the instructions provided with respect to the use of this Exemption Certificate. I further certify that the above statements are true, complete, and correct, and that no material information has been omitted.
Signature of Buyer or Authorized Agent
Title
Date
This form may be photocopied.
Rev.11/19
Instructions for Use of the Certificate of Exemption for Contractors (Form S-3C)
(For use only in completion of qualified projects for exempt organizations)
All tangible personal property purchased by a contractor is taxable as the contractor is considered to be the end-user with the finished product normally being real property, which is not subject to Vermont Sales and Use Tax. However, there are certain exemptions allowed for contractors purchasing materials:
•When the contractor is working with a qualifying exempt organization
•When the contractor is working on a specific qualifying exempt project
Tangible personal property exempted from tax must be incorporated into the real estate, or the supplies must be used or consumed on the job. If the contractor buys materials or supplies exempt from tax but uses them later in a taxable project, the contractor must pay use tax on those materials and supplies. Purchases of equipment and tools used by the contractor are subject to tax.
Qualifying Organizations & Projects
A qualifying organization contracts to construct, reconstruct, alter, remodel, or repair any building structure or public works project owned by the Federal government, State of Vermont (and its agencies and subdivisions), or a 501(c)(3) as designated by the Internal Revenue Service and registered with the Vermont Department of Taxes. Please note that many nonprofit organizations, such as civic, social, and fraternal organizations, are not 501(c)(3)s and not all 501(c)(3)s projects qualify for exemption. To qualify, the project must be used exclusively for public purposes, and the project contract must be granted by an exempt organization. Turnkey projects are not exempt, even if the ultimate owner may be an exempt organization.
Qualifying Manufacturing Facility
Under 32 V.S.A. § 9741(39), Sales of building materials within any three consecutive years in excess of $1,000,000.00 in purchase value used in the construction, renovation, or expansion of facilities which are used exclusively, except for isolated or occasional uses, for the manufacture of tangible personal property for sale.
Acceptance in “Good Faith”
A seller who accepts an exemption certificate in “good faith” is relieved of liability for collection or payment of
the Vermont Sales and Use Tax otherwise due on tangible personal property covered by the certificate. Good faith depends upon a consideration of all the conditions surrounding the transaction. To receive an exemption in good faith, a seller is presumed to be familiar with the law and the regulations pertinent to the business in which the seller deals. In order for good faith to be established, all of the following conditions must be met:
a.The buyer must present the certificate prior to or at the time of the purchase of the property.
b.The certificate must contain no statement or entry which the seller knows, or has reason to know, is false or misleading.
c.The certificate is on an exemption form issued by the Vermont Department of Taxes or a form with substantially identical language.
d.The certificate must be dated and complete and in accordance with published instructions.
e.The Vermont Sales and Use Tax account number is provided on the certificate where applicable
f.The property to be purchased is of a type ordinarily used by the buyer for the purpose described on the certificate.
Improper Certificate/Lack of Certificate
Sales of tangible personal property subject to tax which are not supported by properly executed exemption certificates are taxable retail sales. The burden of proof that the tax was not required to be collected is upon the SELLER.
Retention of Certificates by the Seller
Sellers must retain exemption certificates for at least three years from the date of the last sale covered by the certificate to document why tax was not collected from the buyer.
Multiple Purchase Exemption Certificates
If the buyer presents a “Multiple Purchase” exemption certificate to the seller, it may be used only when purchasing tangible personal property for use on the qualified exempt project as noted on this exemption certificate. For each purchase covered by the exemption certificate, the sales slip or invoice must show the buyer’s name and address sufficient to link the purchase to the exemption certificate on file.
Other types of exemption certificates that may be applicable are available on our website at: www.tax.vermont.gov. For questions regarding how these exemption certificates may be properly applied, please contact the Vermont Department of Taxes at (802) 828-2551.
FORM S-3C INSTRUCTIONS
Page 1 of 1 Rev. 11/19
The S-3C Vermont form is similar to the IRS Form 990, which is used by tax-exempt organizations to report their financial information. Both forms require detailed information about the organization’s activities and finances. Just as the S-3C certifies the tax-exempt status of a contractor working on a project, Form 990 ensures that tax-exempt organizations maintain transparency and accountability in their financial dealings. This helps to confirm that funds are being used for their intended charitable purposes.
Another document that shares similarities with the S-3C form is the Vermont Sales Tax Exemption Certificate (Form S-3). This form is utilized by various entities to claim exemptions from sales tax for specific purchases. Like the S-3C, it requires the buyer to provide detailed information about the purchase and the exempt organization. Both forms aim to ensure compliance with state tax laws while facilitating transactions for exempt entities.
The Certificate of Exemption for Nonprofit Organizations is also comparable to the S-3C form. Nonprofits use this certificate to exempt themselves from sales tax on purchases related to their charitable activities. Similar to the S-3C, this document requires the nonprofit to provide proof of its tax-exempt status and details about the intended use of the purchased goods. Both forms help protect the interests of tax-exempt organizations while ensuring that the law is followed.
Form ST-5, the Massachusetts Sales Tax Exempt Certificate, is another document that bears resemblance to the S-3C. This form is used by exempt organizations in Massachusetts to purchase goods without paying sales tax. It requires information about the purchaser and the nature of the exempt use, much like the S-3C. Both forms serve to streamline the purchasing process for contractors and organizations working on qualifying projects.
The New York State ST-119.1 form is similar in purpose to the S-3C form. This exemption certificate is used by contractors and exempt organizations in New York to purchase materials without incurring sales tax. Both forms require the buyer to assert their tax-exempt status and provide details about the project. They help ensure that tax laws are adhered to while allowing for necessary purchases related to exempt projects.
For those looking to engage in the purchase or sale of all-terrain vehicles, understanding the importance of an accurate ATV Bill of Sale is essential for a smooth transaction. This document not only protects the interests of both parties but also ensures proper compliance with state regulations. If you wish to learn more about this vital form, visit the comprehensive guide on ATV Bill of Sale.
The California Resale Certificate (Form BOE-230) also shares characteristics with the S-3C. This form allows businesses to purchase goods intended for resale without paying sales tax. While it focuses on resale rather than exemption for contractors, both forms require the buyer to provide specific information and certify their status. Each form facilitates compliance with state tax regulations while allowing for necessary transactions.
Lastly, the Florida Consumer’s Certificate of Exemption serves a similar function to the S-3C. This document allows organizations to purchase goods tax-free when used for exempt purposes. Like the S-3C, it requires the organization to provide details about its exempt status and the intended use of the purchased items. Both forms aim to simplify the purchasing process for exempt entities while ensuring adherence to tax laws.
Misconceptions about the S 3C Vermont form can lead to confusion for contractors and organizations seeking tax exemptions. Here are five common misconceptions: