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Should a lessor be purchasing everything from vendors tax free by issuing a resale certificate?

April 26, 2017Certificate Free issuing lessor purchasing resale tax vendor

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Should a lessor be purchasing everything from vendors tax free by issuing a resale certificate?

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The definition of sale in the law includes lease or rental. The definition of seller includes a person making leases or rentals or tangible personal property. Since tax is imposed on the lease or rental of tangible personal property, the purchaser of property for lease or rental should issue a New Jersey Resale Certificate (ST-3) (or the new Streamlined Sales and Use Tax Certificate of Exemption) when purchasing property held out for lease or rental. 28.