CERT-112
General Purpose: Exempt organizations, qualifying governmental agencies,
nonprofit charitable hospitals, nonprofit nursing homes, nonprofit rest homes,
and nonprofit residential care homes must use this certificate to establish that
their purchases of meals or lodging are exempt from tax. (Any reference to
tax in this document includes sales and use taxes and room occupancy tax, as
applicable.) These organizations, governmental agencies, hospitals, and homes
are referred to as exempt entities throughout this certificate. CERT-112
allows an exempt entity to purchase meals or lodging, or both, tax exempt for
a single event and may not be used for repeat purchases. See CERT-123,
Blanket Certificate for Exempt Qualifying Purchases of Meals or Lodging by
an Exempt Entity, for repeat qualifying exempt purchases of meals or lodging.
Use this certificate only if these three conditions are met:
1. The retailer directly invoices and charges the exempt entity for the meals
or lodging; and
2. The exempt entity directly pays the retailer with a check drawn on its own
account or with a credit card issued in its own name; and
3. The exempt entity is not reimbursed, in whole or in part, by donation or
otherwise, for its payment of the meals or lodging by those consuming the
meals or lodging.
Statutory Authority: Conn. Gen. Stat. §12-412(1)(A), (8), and (94).
Credit Card Purchases: If a credit card is used to pay the retailer of meals
or lodging, the card must be issued in the name of the exempt entity. The
credit card must be used exclusively to make purchases for the use of the
exempt entity (not for the convenience of its officers, employees, or members).
The credit card charges must be paid by a check drawn on the exempt entity’s
own checking account.
Nonqualifying Purchases: This certificate may not be used (and tax must
be paid) for the purchase of meals or lodging not meeting all three conditions
above. Nonqualifying purchases include fund raisers where those who attend
are charged or are required to make any payment and seminars or conferences
where meals or lodging charges are included in the conference or seminar
registration fee, except as described below.
An exempt entity may purchase meals tax exempt using CERT-113, Purchases
of Tangible Personal Property and Services by a Nonprofit Charitable Hospital,
Nonprofit Nursing Home, Nonprofit Rest Home, or Nonprofit Residential Care
Home; CERT-119, Certificate for Purchases of Tangible Personal Property
and Services by Qualifying Exempt Organizations; or CERT-134, Sales and
Use Tax Exemption for Purchases by Qualifying Governmental Agencies; and
does not have to get prior approval from the Department of Revenue Services
(DRS), when it will resell the meals at one of five fund-raising or social events
per year that is exempt from tax under Conn. Gen. Stat. §12-412(94) including
meals resold at conferences and seminars. See Special Notice 98(11),
Exemption From Sales and Use Taxes of Sales by Nonprofit Organizations at
Fundraising or Social Events.
Government Purchases Not Requiring Preapproval: The federal
government has implemented the “GSA SmartPay” program, which uses four
categories of credit cards: Fleet, Purchase, Travel, and Integrated cards. Federal
employees may purchase meals and lodging tax exempt by using certain GSA
SmartPay cards when the purchases are billed to and paid by the federal
government. U.S. government agencies making tax-exempt purchases of meals
and lodging using GSA SmartPay cards are not required to get preapproval for
these purchases from DRS and are not required to provide the retailer with
CERT-112. See Policy Statement 2000(1.1), Retailer’s Acceptance of U.S.
Government “GSA SmartPay” Credit Card for Exempt Purchases.
Instructions for the Purchaser: An officer of an exempt entity must
complete and sign this certificate and submit it to DRS at least three weeks
before an event to request the tax-exempt purchase of meals or lodging at a
specific event. The exempt entity should include a copy of the flyer,
announcement, or other promotional literature about the event with
CERT-112. If the purchaser is an exempt organization, it must either attach
(Revised 12/02)
Exempt Purchases of Meals or Lodging by Exempt Entities
a copy of its I.R.C. §501(c)(3) or (13) determination letter issued by the U.S.
Treasury Department or, if it was issued an exemption permit by DRS, enter its
exemption permit number on CERT-112. If the purchaser is a qualifying
governmental agency, no attachment is required. If the purchaser is a nonprofit
charitable hospital, nonprofit nursing home, nonprofit rest home, or nonprofit
residential care home, it must attach a copy of a valid and active license issued
by the Department of Public Health under Chapter 368v of the Connecticut
General Statutes and a copy of its I.R.C. §501(c)(3) or (4) determination letter
issued by the U.S. Treasury Department or, if it was issued an exemption
permit by DRS, enter its exemption permit number on CERT-112. If DRS
concludes that the applicant is making a qualifying exempt purchase,
CERT-112 with DRS official approval noted, will be returned to the exempt
entity. The exempt entity then provides CERT-112 to the retailer of meals or
lodging. Keep a copy of this certificate, the documents attached, and records
that substantiate the information on this certificate for at least six years from
the date it is issued.
Events That Qualify for Refund Only: If the exempt entity will be paying
(and will not be reimbursed, in whole or in part) for the meals or lodging of
some of the attendees, but will be reimbursed in whole or in part for the meals
or lodging of others, a preappproved exemption will not be issued. The exempt
entity must pay tax on all the meals or lodging at the time of the purchase.
However, DRS will refund the tax on those meals or lodging that were paid for
by the exempt entity for which it was not reimbursed in whole or in part. The
exempt entity must file, and DRS must approve, CERT-122, Certificate of
Refund of Sales Tax Paid on Purchases of Meals or Lodging by an Exempt
Entity. The exempt entity is not eligible for refund of the tax paid on meals or
lodging for which it received full or partial reimbursement other than for meals
sold under five one-day fund-raising or social events per calendar year exemption.
See Policy Statement 96(7), Purchases of Meals or Lodging by Exempt
Organizations or Qualifying Governmental Agencies, for more information.
Example 1: B, an exempt organization, sponsors a dinner to honor one of its
members. The restaurant charges B $50 per meal and B sells tickets for $50
per person. The honoree and members of the immediate family attend as
guests of the organization. B must pay sales tax on all meals purchased. It
may, however, complete and file CERT-122 to claim a refund of the taxes paid
only on meals consumed by the honoree and members of the immediate family.
Example 2: C, an exempt organization, sponsors a retirement dinner to honor
one of its employees. The restaurant charges C $60 per meal. C sells tickets
for $50 per person and pays the $10 difference to the restaurant from its own
funds. C must pay sales tax on the full price of all meals purchased. Because
the organization received partial reimbursement for all of the meals, C is not
eligible for a refund of any of the tax paid.
Instructions for Retailer of Meals or Lodging: Acceptance of this
certificate, when properly completed and with DRS official approval noted,
relieves the retailer from the burden of proving that the sale of meals or
lodging was not subject to tax. This certificate is valid only if taken in good
faith from an exempt entity.
Do not accept this certificate unless you directly invoice and charge the exempt
entity for the meals or lodging. Do not accept the certificate unless you are
directly paid by the exempt entity with a check drawn on the exempt entity’s
own checking account or with a credit card issued in the exempt entity’s name
(not in the name of one of its members, employees, or officers). Cash payments
do not satisfy this condition, regardless of the cost of the meals or lodging.
Keep this certificate, the documents attached, and bills or invoices to the
exempt entity for at least six years from the date that the meals or lodging
were purchased. The bills, invoices, or records covering the purchase made
under this certificate must be marked “Exempt Under CERT-112” to indicate
an exempt purchase has occurred. This certificate only applies to the specific
event indicated and may not be used for the exempt purchase of any meals or
lodging at any other event.
State of Connecticut
Department of Revenue Services
Taxpayer Services Division
25 Sigourney Street
Hartford CT 06106-5032
