§11-15B-17 Direct mail sourcing.
§11-15B-17. Direct mail sourcing.
(a) General. -- Notwithstanding section fifteen of this article, a purchaser of direct mail that is not a holder of a direct pay permit shall provide to the seller in conjunction with the purchase either a "direct mail form" or information to show the jurisdictions to which the direct mail is delivered to recipients.
(1) Upon receipt of the direct mail form, the seller is relieved of all obligations to collect, pay, or remit the applicable tax and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis. A direct mail form remains in effect for all future sales of direct mail by the seller to the purchaser until revoked in writing.
(2) Upon receipt of information from the purchaser showing the jurisdictions to which the direct mail is delivered to recipients, the seller shall collect the tax according to the delivery information provided by the purchaser. In the absence of bad faith by the seller, the seller is relieved of any further obligation to collect tax on any transaction where the seller has collected tax pursuant to the delivery information provided by the purchaser.
(b) When purchaser does not have direct pay permit and does not provide direct mail form. -- If the purchaser of direct mail does not have a direct pay permit and does not provide the seller with either a direct mail form or delivery information, as required by subsection (a) of this section, the seller shall collect the tax according to subdivision (5), subsection (a), section fifteen of this article. Nothing in this subsection (b) shall limit a purchaser's obligation for sales or use tax to any state to which the direct mail is delivered.
(c) Direct pay permit. -- If a purchaser of direct mail provides the seller with documentation of direct pay authority, the purchaser may not be required to provide a direct mail form or delivery information to the seller.