Why are resale certificates required?
A taxable item that is purchased for resale is exempt from sales or use tax if the resale is properly documented. If you sell a taxable item to a customer, you must collect sales tax unless you accept a properly completed resale certificate. The resale certificate is proof that the taxable item was purchased for resale. The certificate must include certain specific information. See Rule 3.285. The resale tax certificate can be downloaded from the Tax Forms Online page.
If you purchase tangible personal property for resale, the transaction is not subject to sales or use tax provided the sale is properly documented. As a result, your supplier will ask you to provide a resale certificate as proof that the property was purchased for resale. As explained below, the certificate must be taken on a timely basis, and it must include certain specific information.
