INSTRUCTIONS ON PROPER USAGE OF EXEMPTION CERTIFICATES

The Webster Parish Sales & Use Tax Commission provides exemption certificates for use
by registered dealers for the purpose of acquiring tangible personal property for resale in
the normal course of business. Application for an approval is necessary prior to this office
providing the applicant with the necessary and proper certificate.

Once the exemption certificate is received, it should be filed with those vendors from whom
your resale inventory is purchased. Dealers are reminded that these exemption certificates
are for primary use through wholesale establishments. It should be noted that most retail
establishments will not accept exemption certificates. The reason for their non-acceptance
is that they do not hold themselves out as being engaged in wholesale activity.

The exemption certificate should be completed to include the vendor to whom it is being
issued, as well as covering the property purchased from said vendor which qualifies for
exemption treatment. Dealers are reminded that the exemption certificate is not by design
for use to purchase tangible personal property which will not be resold, but rather used or
consumed in the everyday operations of the business. Such purchases are taxable to the
dealer and the applicable taxes either paid to the vendor or accrued and reported under
line 14 of your Webster Parish Sales & Use Tax report. Dealers who purchase property or
services  that  are  not  taxed  should  self-assess  themselves  the  tax  and  report  it  as
previously advised.

Also, please note that the exemption certificate granted is valid for only a three year period.
It should be renewed at the appropriate time, by submitting a new application outlining any
changes in the business operations which could have a direct bearing on the renewal of
said exemption certificate.

The execution of this exemption certificate is very critical to the vendors to whom they are
presented. Vendors from whom you purchase tangible personal property must charge the
local tax in all instances where an exemption certificate has not been furnished. If you are
engaged in the sale of tangible personal property, and a customer wishes to make a
purchase  for  resale,  then  you  should  ensure  that  a  similar  exemption  certificate  be
provided to you by the customer in order that sufficient documentation of the non-taxable
transaction is retained in your files for future reference. Any questions that you may have
concerning the exemption certificate or its proper use should be directed to the Sales Tax
Commission at (318) 377-8948