(a)Notwithstanding section 1 of this chapter,
a purchaser of advertising and promotional direct mail that is not a
holder of a direct pay permit may provide to the seller in conjunction
with the purchase:
(2)a certificate of exemption claiming "direct mail" (or another
written statement approved, authorized, or accepted by the
department); or
(3)information to show the jurisdictions to which the advertising
and promotional direct mail is delivered to recipients.
(b)If the purchaser provides the direct mail form referred to in
subsection (a)(1), or a certificate or statement referred to in subsection
(a)(2), in the absence of bad faith, the seller is relieved of all
obligations to collect, pay, or remit the applicable tax on any
transaction involving advertising
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(a) Notwithstanding section 1 of this chapter,
a purchaser of advertising and promotional direct mail that is not a
holder of a direct pay permit may provide to the seller in conjunction
with the purchase:
(1) a direct mail form;
(2) a certificate of exemption claiming "direct mail" (or another
written statement approved, authorized, or accepted by the
department); or
(3) information to show the jurisdictions to which the advertising
and promotional direct mail is delivered to recipients.
(b) If the purchaser provides the direct mail form referred to in
subsection (a)(1), or a certificate or statement referred to in subsection
(a)(2), in the absence of bad faith, the seller is relieved of all
obligations to collect, pay, or remit the applicable tax on any
transaction involving advertising and promotional direct mail to which
the direct mail form, certificate, or statement applies. The purchaser
shall source the sale to the jurisdictions to which the advertising and
promotional direct mail is to be delivered to the recipients and is
obligated to pay or remit the applicable tax on a direct pay basis.
(c) If the purchaser provides the information referred to in
subsection (a)(3) showing the jurisdictions to which the advertising and
promotional direct mail is delivered to recipients, the seller shall source
the sale to the jurisdictions to which the advertising and promotional
direct mail is to be delivered and collect the tax according to the
delivery information provided by the purchaser. In the absence of bad
faith, the seller is relieved of any further obligation to collect tax on any
transaction where the seller has sourced the sale and collected tax
under the delivery information provided by the purchaser.
(d) If the purchaser of advertising and promotional direct mail does
not have a direct pay permit and does not provide the seller with either
a direct mail form referred to in subsection (a)(1), a certificate or
statement referred to in subsection (a)(2), or delivery information
referred to in subsection (a)(3), the sale shall be sourced and the seller
shall collect the tax according to section 1(d)(5) of this chapter.
Nothing in this subsection limits a purchaser's obligation for sales or
use tax to any state to which the advertising and promotional direct
mail is delivered. The state to which the advertising and promotional
direct mail is delivered may disallow a credit for tax paid to this state
on sales sourced under this subsection.
(e) Except as provided in this section, sales of other direct mail are
sourced in accordance with section 1(d)(3) of this chapter. A purchaser
of other direct mail may provide the seller with either:
(1) a direct mail form; or
(2) a certificate of exemption claiming "direct mail" (or another
written statement approved, authorized, or accepted by the
department).
(f) If the purchaser provides the direct mail form referred to in
subsection (e)(1) or a certificate or statement referred to in subsection
(e)(2), the seller, in the absence of bad faith, is relieved of all
obligations to collect, pay, or remit any tax on any transaction involving
other direct mail to which the direct mail form, certificate, or statement
applies. Notwithstanding subsection (e), such a sale shall be sourced to
the jurisdictions to which the other direct mail is to be delivered to the
recipients, and the purchaser shall report and pay the applicable tax
due.
(g) If a purchaser of direct mail provides the seller with
documentation of direct pay authority, the purchaser shall not be
required to provide a direct mail form, a certificate or statement, or
delivery information to the seller.
(h) A direct mail form remains in effect for all future sales of direct
mail by the seller to the purchaser until it is revoked in writing.
(i) This section applies to a transaction characterized as the sale of
services only if the service is an integral part of the production and
distribution of printed material that is direct mail.
(j) This section does not apply to any transaction that includes the
development of billing information or the provision of any data
processing service that is more than incidental, regardless of whether
advertising and promotional direct mail is included in the same
mailing.