If you’re a retailer sourcing products from multiple states, you’ll often need more than one resale certificate to avoid paying sales tax on goods you purchase to resell. But while some states accept out-of-state resale certificates, others require you to register for a sales tax permit in order to get a resale certificate for their particular state.
How do you begin to decipher what’s required for your business? From information on multi-state resale certificates to each state’s requirements, you’ll find details and links to save you valuable time below.
A resale certificate is a tax form that you can provide to your supplier in order to purchase inventory tax-free (assuming you are reselling the inventory to customers, of course!). This means that if you have the proper documentation, you can avoid paying sales tax on your purchases which can save you a good chunk of change.
Before you get started, you should note that many states will allow you to use an out-of-state resale certificate to complete their documentation. But there are 12 states (plus Washington, D.C.) that require that you register for a sales tax permit in their state to get a resale certificate.
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Before you begin downloading each individual resale certificate, you should keep in mind that there are two multi-state resale certificates that you can use. These forms will allow you the ease of providing resale certificates for multiple states at once.
The Streamlined Sales Tax Governing Board (SST) has created the Streamlined Sales Tax Exemption Certificate which can be used by anyone (you don’t have to register through SST to use this form) for all of their member states.
The Multistate Tax Commission (MTC) has created the Uniform Sales & Use Tax Exemption Certificate which can be used for some of their member states. Please consult the link for a complete list of the states that accept the Uniform Sales & Use Tax Exemption Certificate, subject to notes on pages 2-4 of that document.
If you are using either of these multi-state resale certificate forms, you need to pay special attention to the instructions on completing the form, as well as what each state will allow.
Here are a few things you should keep in mind as you continue your resale certificate journey.
Suppliers are not very knowledgeable on what resale certificate documentation they can accept. We’ve seen suppliers deny out-of-state resale certificates in states that accept out-of-state resale certificates, and require their customers to register for an in-state sales tax permit. If this is happening to you, you can either show them this blog post (and the supporting state statutes) or you can just bite the bullet and do what they say. Thankfully, this is not the case with the majority of suppliers.
Resale exemption certificates are typically only good for one kind of use: reselling products. Many states have special forms for the different types of exemption use. Note that exemptions claimed on incorrect forms may be considered invalid.
In many states, resale certificates eventually expire. This means that you may need to fill the form out again every one to five years. Each state varies regarding resale certificate expiration. It is your responsibility to keep track of the expiration dates of your resale certificates.
Unfortunately, suppliers are not required to accept resale certificates from their resellers (crazy, right?). If your supplier is not accepting your valid resale certificate, it is usually due to one of the following reasons:
If your supplier is not accepting a valid resale certificate, there is not a lot of recourse you can take. The sales tax collection responsibility by law (in most states) falls on the supplier. So they are carrying all the risk if they accept a certificate that isn’t valid. This is why they may be overly cautious to a detriment.
We’ve seen our clients have success when they direct them to our blog and assist them with better understanding the rules. Some businesses attempt to “reclaim” overpaid sales tax on their returns, but this is technically not allowed in most states.
Unfortunately, this means that many businesses will need to pay their suppliers' sales tax unless they can comply with their requirements. We’ve had several clients that registered for sales tax permits solely because of the huge cost savings of using a resale certificate.
Alabama requires registration with the state for a resale certificate. However, if you are a drop-shipper, you are not required to register with the state for a resale certificate.
To get a resale certificate in Alabama, you may complete the Alabama Application for Certificate of Exemption (Form ST-EX-A1) .
Ala. Admin. Code 810-6-5-.02(12) allows the Form STE-1 (also known as Form ST-EX-A1) to be used to claim a reseller exemption. Ala. Admin. Code 810-6-5-.02(7) provides the renewal criteria. The Simplified Sellers Use Tax FAQ notes that a resale certificate may only be required after registering with the state. For details on why Alabama doesn’t require a resale certificate for drop shippers, see their FAQ page “What guidance is there for vendors drop-shipping into Alabama and remote sellers?”.
Alaska doesn’t have state sales tax, but Alaska does have local sales tax in some jurisdictions. Please refer to the specific jurisdiction to determine how to get a resale certificate.
To get a resale certificate in Arizona, you may complete the Arizona Resale Certificate (Form 5000A) , the Multistate Tax Commission’s Uniform Sales and Use Tax Certificate , or the Border States Uniform Sale for Resale Certificate (Form 60-0081) . You may use an out-of-state sales tax license number to fill out these forms.
A blanket certificate in Arizona should be renewed at least every twelve months. Blanket certificates may also be valid for a specific timeframe which is less than twelve months.
Ariz. Rev. Stat. Ann. § 42-5022 gives the requirements for what needs to be on the reseller exemption certificate. Ariz. Rev. Stat. Ann. § 42-5009(N) gives exemptions for certain types of farmers from having to supply a reseller exemption certificate. Arizona Transaction Privilege Tax Procedure No. 16-1 gives the requirement that blanket certificates should be renewed at least every twelve months.
To get a resale certificate in Arkansas, you may either fill out the Arkansas Exemption Certificate (Form ST 391) or the Streamlined Exemption Certificate Form . You may use an out-of-state sales tax license number on these forms.
A blanket certificate in Arkansas expires if not used within a twelve-month timeframe. Thus, it may be wise to renew Arkansas’s resale certificates every twelve months just to be safe.
Ark. Regs. GR-53(B)(1) gives the requirements for what qualifies as a valid resale certificate. Ark. Regs. GR-53(B)(3) gives the requirements for renewing resale certificates.
To get a resale certificate in California, you need to fill out the California General Resale Certificate (CDTFA-230) . You will need a valid California seller’s permit number.
Cal. Code Regs. 1668(a) requires a seller’s permit to have a valid resale certificate. Cal. Code Regs. 1668(b) gives details as to what qualifies as a resale certificate. Cal. Code Regs. 1668(b)(3) provides details about a blanket resale certificate.
To get a resale certificate in Colorado, you need to fill out the Uniform Sales and Use Tax Resale Certificate - Multijurisdiction .
It appears that the blanket certificate does not expire as long as the information on the form is still valid.
Colo. Code Regs. 39-26-105.1(c)(3) gives detailed information as to what is required of a seller to verify a non-taxable sale.
To get a resale certificate in Connecticut, you need to fill out the Connecticut Sales & Use Tax Resale Certificate .
A blanket resale certificate should be renewed at least every three years from the date of issue. However, it may also be used on a sale-by-sale basis.
Conn. Agencies Regs. 12-426-1 gives detailed information as to what is required of a seller to verify a non-taxable sale. Connecticut Informational Publication, No. 2009(15), 04/08/2009 provides some frequently asked questions and answers regarding resale certificates.
D.C. Mun. Regs. 414 gives details about resale certificates in the District of Columbia. The District of Columbia Resale Certificate User Guide may also be helpful.
To get a resale certificate in Florida, you must be registered with the state. Once registered with the state, you will receive your own resale certificate annually.
Each certificate is valid for one calendar year. At the beginning of a new calendar year, the state will send a new certificate, which replaces the expired certificate.
You may visit the Florida Department of Revenue to log into your account and print a resale certificate (scroll down to “Sales & Use Tax”). Fla. Admin. Code Ann. 12A-1.039 contains the rules regarding sales for resale.
To get a resale certificate in Georgia, you will need to fill out the Georgia Certificate of Exemption (ST-5) . If you are not required to be registered in Georgia, you should fill out the Multistate Tax Commission’s Uniform Sales and Use Tax Certificate.
Ga. Code Ann. § 48-8-38 contains the rules regarding sales for resale. Georgia also has frequently asked questions for nontaxable sales on its website. This Sales Tax Bulletin serves as an additional resource for Drop Shippers seeking resale certificates.
To get a resale certificate in Hawaii, you will need to fill out the applicable Resale Certificate Form (G-17, G-18, or G-19) . Please note that Form G-18 is only to be used for contractors in which a building permit is required.
Idaho Admin. Rules 35.01.02.128 contains the rules regarding sales for resale. The Idaho State Tax Commission also has published some information on purchases by retailers .
Illinois requires registration with the state for a resale certificate unless you are an out-of-state purchaser that only sells to customers located outside of Illinois.
To get a resale certificate in Illinois, you will need to fill out the Illinois Certificate of Resale (CRT-61) .
The Illinois Department of Revenue recommends that Certificates of Resale be updated at least every three years.
To get a resale certificate in Indiana, you will need to fill out the Indiana General Sales Tax Exemption Certificate (ST-105) .
Indiana briefly addressed how to handle nontaxable sales for resale in Information Bulletin #57 9/1/2011 .
To get a resale certificate in Iowa, you will need to fill out the Iowa Sales/Use/Excise Tax Exemption Certificate 31-014 .
Iowa Code § 423.45 contains the rules regarding sales for resale. Iowa also has an online Sales and Use Tax Guide .
Blanket resale certificates in Kansas do not expire as long as a “recurring business relationship” exists. A “recurring business relationship” exists when no more than twelve months pass between sales.
Kan. Admin. Regs. 92-19-25b contains the rules regarding exemption certificates. Kansas also has an online Exemption Certificate booklet .
To get a resale certificate in Kentucky, you will need to fill out the Kentucky Resale Certificate 51A105 .
Blanket resale certificates in Kentucky do not expire unless there is a change in the operations of the purchaser or the purchased goods or service is not the kind that the purchaser usually buys.
Ky. Admin. Regs. 31:111 contains the rules regarding sales for resale. Ky. Rev. Stat. Ann. § 139.270 and Ky. Rev. Stat. Ann. § 139.280 contain the rules regarding resale certificates.
To get a resale certificate in Louisiana, you must be registered with the state. Once registered with the state, you may download it from the state’s online portal . If you are registered as a Remote Seller in Louisiana through the Sales and Use Tax Commission, you can find a copy of Louisiana's resale certificate here.
Blanket resale certificates in Louisiana are valid for two to three years depending on the certificate received. Each certificate may be automatically renewed if there is business activity using the certificate every twelve months.
Louisiana Revenue Information Bulletin No. 09-015 6/23/2009 contains some of the rules regarding resale certificates.
Are you still hanging in there? We aren’t done yet! There is still more information on which resale certificates in each state. Remember, you can just follow the links at the top of the post to jump close to the information regarding any states.
To get a resale certificate in Maine, you will need to be registered with the state of Maine and also report at least $3,000 of gross sales per year. If you qualify, you will automatically receive a resale certificate. If you do not qualify for this, you may fill out the Uniform Sales & Use Tax Certificate Form.
A Maine resale certificate is valid for a period of three to five years depending on the issuing or renewing date of the resale certificate.
Me. Rev. Stat. Ann. § 1754-B contains the rules regarding the validation period of the resale certificate. Maine Revenue Services Sales, Fuel & Special Tax Division Instructional Bulletin No. 54 also focuses on the rules regarding resale certificates. Maine also posted a Sales, Use, and Service Provider Tax FAQ
To get a resale certificate in Maryland, you will need to be registered with the state. In order to create a Maryland resale certificate, complete the online form available on this page and then input the purchaser information. A template will be created that you can then save or print. Please note that any purchases under $200 are typically not allowed to be tax-free.
Md. Regs. Code 03.06.01.14 contains the rules regarding resale certificates. The Maryland Purchases for Resale Refundable by Fax form can be used to refund tax paid on purchases under $200.
To get a resale certificate in Massachusetts, you will need to be registered with the state of Massachusetts. You will need to fill out the Massachusetts Sales Tax Resale Certificate ST-4.
To get a resale certificate in Michigan, you will need to fill out the Michigan Sales and Use Tax Certificate of Exemption (Form 3372).
A blanket resale certificate in Michigan expires every four years and could expire earlier if a purchaser does not have a “recurring business relationship” which involves a purchase of at least every twelve months.
Michigan Revenue Administrative Bulletin 2016-14 contains the rules regarding sales and use tax exemptions.
To get a resale certificate in Minnesota, you will need to fill out the Minnesota Certificate of Exemption (Form ST3).
You can see the Minnesota Sales and Use Tax Business Guide for information regarding sales and use tax, but also for resale certificates.
To get a resale certificate in Mississippi, you will need to be registered with the state. In lieu of a resale certificate, you will need to provide the vendor with a Mississippi business permit.
Since Mississippi does not have a resale certificate but instead requires you to present your vendor with a Mississippi business permit, you will need to present that vendor with a new business permit every time it is renewed.
Miss. Code Ann. § 27-65-5 and Miss. Administrative Code 35.IV.3.01 provide the rules regarding sales for resale. Miss. Code Ann. § 27-65-27 details the rules for a Mississippi business permit. Mississippi also posted a Sales Tax FAQ which clarifies the duties of an out-of-state purchaser to register with the state to claim an exempt purchase.
Missouri does not require registration with the state for a resale certificate if purchasing tangible personal property. If purchasing a taxable service, Missouri requires registration with the state for a resale certificate. However, Missouri Private Letter Ruling 6271 from May of 2010 suggests that any out-of-state reseller that asks a supplier to dropship a product to a customer in Missouri is responsible for paying sales tax in Missouri primarily due to title transfer of the product from the third party supplier to the seller to the customer. Because of this, any retailer engaging in resale to Missouri customers should consider getting a sales tax permit and collecting and remitting tax to the state.
To get a resale certificate in Missouri, you will need to fill out the Sales and Use Tax Exemption Certificate (Form 149).
Blanket resale certificates in Missouri expire every five years or the date of expiration on the resale certificate.
Does Maine require registration with the state for a resale certificate? Maine does not require registration with the state for a resale certificate. How can you get a resale certificate in Maine? To get a resale certificate in Maine, you will need to be registered with the state of Maine and also report at least $3,000 of gross sales per year. If you qualify, you will automatically receive a resale certificate. If you do not qualify for this, you may fill out the Uniform Sales & Use Tax Certificate Form . How often should this certificate be renewed? A Maine resale certificate is valid for a period of three to five years depending on the issuing or renewing date of the resale certificate. Where can you go to learn more? Me. Rev. Stat. Ann. § 1754-B contains the rules regarding the validation period of the resale certificate. Maine Revenue Services Sales, Fuel & Special Tax Division Instructional Bulletin No. 54 also focuses on the rules regarding resale certificates. Maine also posted a Sales, Use, and Service Provider Tax FAQ .
Does Maryland require registration with the state for a resale certificate? Maryland requires registration with the state for a resale certificate. How can you get a resale certificate in Maryland? To get a resale certificate in Maryland, you will need to be registered with the state. In order to create a Maryland resale certificate, complete the online form available on this page and then input the purchaser information. A template will be created that you can then save or print. Please note that any purchases under $200 are typically not allowed to be tax-free. How often should this certificate be renewed? It appears that a blanket certificate in Maryland does not expire. Where can you go to learn more? Md. Regs. Code 03.06.01.14 contains the rules regarding resale certificates. The Maryland Purchases for Resale Refundable by Fax form can be used to refund tax paid on purchases under $200.
Does Massachusetts require registration with the state for a resale certificate? Massachusetts requires registration with the state for a resale certificate. How can you get a resale certificate in Massachusetts? To get a resale certificate in Massachusetts, you will need to be registered with the state of Massachusetts. You will need to fill out the Massachusetts Sales Tax Resale Certificate ST-4 . How often should this certificate be renewed? It appears that a blanket certificate in Massachusetts does not expire. Where can you go to learn more? Mass. Regs. Code 64H.8.1 contains the rules regarding resale certificates.
Does Michigan require registration with the state for a resale certificate? Michigan does not require registration with the state for a resale certificate. How can you get a resale certificate in Michigan? To get a resale certificate in Michigan, you will need to fill out the Michigan Sales and Use Tax Certificate of Exemption (Form 3372) . How often should this certificate be renewed? A blanket resale certificate in Michigan expires every four years and could expire earlier if a purchaser does not have a “recurring business relationship” which involves a purchase of at least every twelve months. Where can you go to learn more? Michigan Revenue Administrative Bulletin 2016-14 contains the rules regarding sales and use tax exemptions.
Does Minnesota require registration with the state for a resale certificate? Minnesota does not require registration with the state for a resale certificate. How can you get a resale certificate in Minnesota? To get a resale certificate in Minnesota, you will need to fill out the Minnesota Certificate of Exemption (Form ST3) . How often should this certificate be renewed? The form does not expire unless the information on the certificate changes. Where can you go to learn more? You can see the Minnesota Sales and Use Tax Business Guide for information regarding sales and use tax, but also for resale certificates.
Does Mississippi require registration with the state for a resale certificate? Mississippi requires registration with the state for a resale certificate. How can you get a resale certificate in Mississippi? To get a resale certificate in Mississippi, you will need to be registered with the state. In lieu of a resale certificate, you will need to provide the vendor with a Mississippi business permit. How often should this certificate be renewed? Since Mississippi does not have a resale certificate but instead requires you to present your vendor with a Mississippi business permit, you will need to present that vendor with a new business permit every time it is renewed. Where can you go to learn more? Miss. Code Ann. § 27-65-5 and Miss. Administrative Code 35.IV.3.01 provide the rules regarding sales for resale. Miss. Code Ann. § 27-65-27 details the rules for a Mississippi business permit. Mississippi also posted a Sales Tax FAQ which clarifies the duties of an out-of-state purchaser to register with the state to claim an exempt purchase.
Does Missouri require registration with the state for a resale certificate? Missouri does not require registration with the state for a resale certificate if purchasing tangible personal property. If purchasing a taxable service, Missouri requires registration with the state for a resale certificate. However, Missouri Private Letter Ruling 6271 from May of 2010 suggests that any out-of-state reseller that asks a supplier to dropship a product to a customer in Missouri is responsible for paying sales tax in Missouri primarily due to title transfer of the product from the third party supplier to the seller to the customer. Because of this, any retailer engaging in resale to Missouri customers should consider getting a sales tax permit and collecting and remitting tax to the state. How can you get a resale certificate in Missouri? To get a resale certificate in Missouri, you will need to fill out the Sales and Use Tax Exemption Certificate (Form 149) . How often should this certificate be renewed? Blanket resale certificates in Missouri expire every five years or the date of expiration on the resale certificate. Where can you go to learn more? Mo. Code Regs. 10-107.100 contains rules regarding resale certificates.
