The CERT 103 form is specifically for Connecticut residential condominium associations. Its purpose is to provide the vendor with the percentage of units not occupied by the unit owners (income producing). These units should be charged sales and use taxes on certain services provided to the common elements of the real property as outlined by the State of Connecticut Department of Revenue Services. These forms are generally updated at the beginning of the calendar year by the property manager.
Here is a copy of ourÂ cert-103 fillable form.
Frequently Asked Questions about the Cert 103
Who gets the CERT 103?
The forms are given to any vendor that renders â€œcapital improvement/reconstructiveâ€ services (refer to the list for Â applicable Â services) Â directly Â related Â to Â the Â common Â elements Â of Â the Â real Â property Â of Â the Â Association Â and Â where services are to industrial, commercial or to income producing real property (nonâ€owner occupied units). Â Do Â not Â issue Â the Â CERT Â 103 Â to Â a Â vendor Â if Â the Â services Â provided Â were Â for Â â€œgeneral Â maintenance/preventativeâ€ Â (refer Â to Â the Â list Â for Â applicable Â services) Â because Â there Â is Â no Â sales Â and Â use Â tax Â exemption Â on Â these Â type Â of services for either owner or nonâ€owner occupied units.
When would it be a good time to gather the occupancy information?
A suggested time could be the last quarter of the current year (example October to December 2013) so that the association Â can Â have Â the Â occupancy Â information Â completed Â in Â the Â beginning Â of Â the Â next Â year Â (2014). Â The Â property Â manager Â can Â review Â this Â information Â again Â in Â the Â beginning Â of Â the Â next Â year Â to Â verify Â that Â the Â preliminary Â information Â provided Â remains Â accurate. Â Once Â complete, Â the Â final Â percentages Â for Â nonâ€owner Â occupied units can be processed and the CERT 103 forms can be sent to the principal officer of the association to be Â signed. Â A Â copy Â of Â the Â CERT Â 103 Â form Â should Â be Â kept Â with Â the Â vendor Â files Â to Â insure Â that Â they Â are Â readily Â available.
What are â€œnonâ€exemptâ€ services for both owner and nonâ€owner occupied units?
These Â expenses Â are Â generally Â for Â â€œgeneral Â maintenance/preventativeâ€ Â and Â upkeep Â of Â the Â common Â areas Â and are 100% sales and use taxable for both owner and nonâ€owner occupied units.
â€œGeneral Â maintenance/preventativeâ€ Â services Â provided Â to Â the Â common Â elements Â associated Â with Â real Â property include but are not limited to: landscaping, janitorial, swimming pool cleaning/maintenance, snow removal, locksmith, exterminating, window cleaning, house washing, and maintenance services.
Please note that the information provided above should not be the sole source of any decisions related to the topic. Â The primary source should be the Department of Revenue Services and, if necessary, legal or tax representation regarding the sales and use tax laws.Â