Purchasing agent authorization letter definition
Purchasing agent authorization letter means a letter from a designated exempt entity to a contractor, subcontractor, builder or manufacturer authorizing the contractor, subcontractor, builder, or manufacturer to purchase tangible personal property consisting of building materials, supplies, or equipment free from tax for a construction project of which the designated exempt entity is the sponsor. The letter shall set out the contract date or the contract letting date and give a general description of the construction contract to which it applies. The letter shall state that it is the responsibility of the contractor, subcontractor, builder, or manufacturer to keep records identifying the property purchased exempt from tax and verifying that the property purchased was used in the contract with the exempt entity. The letter shall also state that property purchased tax-free and not used in the contract with the exempt entity is subject to tax which must be paid directly to the Iowa department of revenue.