Reseller permits

Purchasing items with a reseller permit

If you purchase items for resell, you need to complete and submit a reseller permit to the seller (person or business you went through). If the seller does not receive a properly completed reseller permit they must charge you (the buyer) retail sales tax.

Reseller permits may only be used to purchase property or services that are:

• For resale in the regular course of business.
• Part of tangible personal property for sale.

Example: A mailing business can purchase the following items without having to pay sales tax. This is because the items will be resold to customers:

• packing boxes
• packaging
• tape
• labels
• greeting cards

If you use items from your own business inventory, the items are subject to either sales tax or use tax.

Example: ABC Mail Store pulls packing boxes from their inventory to use for storing business records. Use tax is due on the boxes because they are not being resold.

See the department’s website for information on reseller permits.