Resale Certificate

Resale Certificate
If you are purchasing goods for resale, the supplier or manufacturer will ask you to fill out a
resale certificate that may be kept on file to validate selling to you on a tax-free basis. By the
same token, when you sell to another dealer, you must also have him or her fill out a resale card
for your files. If the state later questions your nontaxable sales, you will have documentation as to
why you did not collect tax on the sale. Pads of resale certificates may be purchased at almost any
stationery supply store.
Example Form: A sample resale certificate form can be found at the end of this
chapter (page 78).