What are my responsibilities as a seller accepting a resale certificate?
As a seller, you should always note the general character of the purchaser’s business. If the nature of the business is such that the property purchased would not normally be resold, you should question the use of the certificate. For example, a resale certificate describing the business as a service station should not be accepted for the purchase of a sofa or similar item not regularly sold by service stations. If the purchaser insists that the item is to be resold, you should ask for a resale certificate stating that the specific property is being purchased for resale in the regular course of business. If the purchaser is unwilling to provide one, you should consider the sale as taxable. You should not accept the certificate if you know or have reason to believe the property is being purchased for other than resale. You are required to take a resale certificate in a timely fashion. That is, it must be taken: • Before you bill the purchaser for the property, or • At any time within yo
