Up-Front Capital Equipment Exemption – Law Change

Starting July 1, 2015, the capital equipment refund will become an up-front sales tax exemption.

To claim the exemption on eligible purchases, businesses must give the supplier a completed Form ST3, Certificate of Exemption. Use exemption reason code for “Capital equipment”.

Before July 1, businesses were required to pay sales tax when purchasing eligible capital equipment and then file a refund request with the Department of Revenue.

Note: If you pay sales tax on purchases after June 30, 2015, you may still file a refund request for tax paid in error.

For more information click here: FS103

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