Resale certificates are used by purchasers, when acquiring property for resale in its present form or as components of other property. States that allow for resale exemptions either accept a state issued resale certificate or, in some cases, a multi-state certificate. A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business.

A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business. Any merchandise obtained upon resale certificate is subject to sales and use tax if it is used or consumed by the purchaser in any manner, and must be reported and the tax paid thereon direct to the appropriate jurisdiction.

If you do not have a resale certificate but believe you qualify to receive one, contact your state or local sales and tax comptroller department to request the documentation.