An individual or business who has made a payment directly to the Department of Revenue or a county tax collector that was not owed, was paid in error, or was an overpayment, may submit an
Application for Refund — Sales and Use Tax (
Form DR-26S). Sales and use tax dealers must first refund the customer before seeking a refund from the state. A refund for a payment made to a dealer or private tag agency must be requested from the dealer or private tag agency to whom the payment was made.
Dealers may take a credit on their sales tax return instead of filing a refund application. The dealer must first refund the tax to the customer (if applicable), document internal records to support the credit, and enter the amount of the credit as a "lawful deduction" on the sales and use tax return.