The Department of Revenue has passed legislation replacing the resale certificate with a reseller permit for businesses that make wholesale purchases. These permits will be free of charge and will allow businesses to purchase items or services for resale without paying retail sales tax.
Beginning in September 2009, the Department of Revenue will issue permits to qualifying businesses. Businesses that do not automatically receive a permit may apply for one.
Businesses without a reseller permit or other exemption certificate, making a purchase for resale, will be required to pay retail sales tax. To recoup the tax paid on a sale for resale, they may take deduction on their tax return or request a refund from the Department.
Businesses who are registered with the Department before January 1, 2009, will receive a permit valid for 4 years. Taxpayers registered on or after January 1, 2009, will receive a permit for 2 years which will then be renewable thereafter for 4 years. For qualifying contractors, permits will be valid for 12 months. Contractors will be required to reapply each year, providing information to the Department of Revenue about materials and contract labor in order to receive a new permit.
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