Notwithstanding the provisions of §§ 10-45-61, 10-59-3, and 10-59-7, if the seller has not obtained an exemption certificate or all relevant data elements for an exemption certificate, the seller may, within one hundred twenty days subsequent to a request for substantiation by the Department of Revenue, do either of the following:

1. (1) Obtain a fully completed exemption certificate from the purchaser, taken in good faith which means that the seller obtained a certificate that claims an exemption that:

   1. (a) Was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
   2. (b) May be applicable to the item being purchased; and
   3. (c) Is reasonable for the purchaser's type of business; or
2. (2) Obtain other information establishing that the transaction was not subject to the tax.

Any exemption certificate presented after one hundred twenty days need not be considered by the department.

Source: SL 2007, ch 59 , § 1; SL 2020, ch 35 , § 1.