(1) Notwithstanding the reduced rate for purchases by common carriers, there are exempt from the sales and use tax railroad track materials and locomotive radiators purchased in this state by railroads for use outside this state.
(2) Persons seeking to make exempt purchases as provided in this section shall apply to the commissioner for a certificate as provided in § 67-6-529. In order to obtain the exemption, a copy of the certificate provided by this section or a fully completed Streamlined Sales Tax certificate of exemption shall be given by the railroad to each dealer from which it intends to make exempt purchases.
(3) If a railroad fails to keep records as required by the commissioner to establish that railroad track materials or locomotive radiators purchased exempt from tax were not used in this state, but were removed from this state for use and consumption outside this state, then the railroad shall be liable for tax on such materials or radiators at the full rate provided by § 67-6-203, regardless of whether such railroad had previously obtained a certificate as provided by this section.