Q. (cont.) I am asking if you know of any form that will accompany a tax exempt certificate that is a statement of “no nexus”. We have created our own document but wanted to compare it with others.
A: TARN does not have a no nexus form or letter. Below is a no nexus form we located that you might want to compare with your own document. Take care in using any of its particular language. We recommend that you ask a member of the legal or tax department to review any correspondence you plan to send.
No Nexus Letter for the State of Indiana Resale/Wholesale Transactions
To Whom It May Concern:
This letter is to certify under oath that the buyer listed below is purchasing goods/services for resale/wholesale purposes. Buyer has no nexus in the state of Indiana therefore it is not registered. Buyer is also providing a copy of their home state resale certificate and it further agrees and understands that nexus means having or maintaining within this state, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this state under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent or other representative is located here permanently or temporarily, or whether such retailer or subsidiary is licensed to do business in this state. It does not matter that an agent may engage in business on his own account in other transactions, nor that such agent may act as agent for other persons in other transactions, nor that he is not an employee but is an independent contractor acting as an agent.
Seller name and address: _______________________________________________________
Buyer name and address: _______________________________________________________
Buyer's home state:____________________
Home state permit:_______________________
The challenge here, as in all sales tax issues is, of course, that each state has its own requirements for proof. According to Ned Lenhart, president of Interstate Tax Strategies P.C, a number of states simply will accept the home state's exemption certificate. And as you say, others will accept a completed resale exemption certificate of another state with an added statement of "no nexus." Then there are states like California and Washington, which require resellers to acquire a state exemption certificate from them.
Some states have developed questionnaires for an organization to complete to prove it does not have nexus. Before you complete a questionnaire, it would be advisable to read How to Respond to a Nexus Questionnaire.
Peisner Johnson & Company, LLP, have a state-by-state table of the acceptability of no nexus statements here, dating from August 2014.