§ 26-52-509 — Direct payment of tax by consumer or user generally - Definition

(a) (1) The Secretary of the Department of Finance and Administration by agreement with any consumer or user may: (A) Permit a consumer or user under the agreement to accrue and remit gross receipts taxes directly to the Department of Finance and Administration, instead of the taxes being collected and paid by the seller under § 26-52-508 ; and (B) (i) Issue limited direct pay authority to permit a user or consumer to accrue and remit gross receipts and compensating use taxes on purchases that include eligible purchases. (ii) (a) A limited direct pay agreement permits a consumer or user to accrue and remit gross receipts and compensating use taxes on purchases that include eligible purchases. (b) As used in this section, "eligible purchases" means property or services subject to a refund of tax under §§ 26-52-447 and 26-53-149 . (iii) (a) A limited direct pay agreement is available only to a person eligible for a refund of tax under §§ 26-52-447 and 26-53-149 . (b) A person holding a limited direct pay permit shall use the permit only to make purchases that include eligible purchases. (2) (A) A seller that receives a claim for exemption from a customer based on a limited direct pay permit shall not collect and remit gross receipts or compensating use taxes on purchases that include eligible purchases made by a person holding a limited direct pay permit. (B) However, if a seller collects and remits gross receipts or compensating use taxes on eligible purchases from a person holding a limited direct pay permit, a refund may be obtained under § 26-18-507 . (3) A person who has entered into a limited direct pay agreement under this section and makes purchases of property or services under the authority of that agreement without paying the gross receipts or compensating use taxes due on those purchases is responsible for remitting the proper amount of tax due to the secretary as required by law. (4) (A) A seller shall collect and remit gross receipts and compensating use taxes on purchases made by a person holding a limited direct pay permit that are not eligible purchases. (B) If a seller relies on the limited direct pay permit and fails to properly collect tax on sales other than eligible purchases, the limited direct pay permit holder shall remit the proper amount of tax to the state as required under subdivision (a)(3) of this section. (5) This section does not eliminate the requirement that a consumer or user self-assess and remit compensating use tax under §§ 26-53-123 - 26-53-125 . (b) The agreements may be revoked at any time by the secretary whenever the secretary determines that the revocation thereof should be in the best interests of collection of gross receipts taxes. (c) A consumer or user being permitted to report gross receipts taxes directly to the department shall not be entitled to any discount for any collection and shall be subject to all provisions of this chapter in the same manner as the taxpayer liable to remit taxes under this chapter. (d) This section is supplemental to this chapter.

Legislative History

Amended by Act 2019, No. 910,§ 3872, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3871, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 3870, eff. 7/1/2019. Amended by Act 2015, No. 1107,§ 2, eff. 4/6/2015. Acts 1975, No. 800, §§ 1, 2; 1979, No. 401, § 47; A.S.A. 1947, §§ 84-1945, 84-1945n.