A publication from NYS says that with a Certificate of Authority (which I
have) I can issue resale certificates to avoid paying tax on item bought for
resale; but doesn't even hint at how a resale certificate is issued.
Any help would be appreciated.
Most states have a form that you fill out send to the seller that shows your
tax exempt status. You just make a copy of the form and mail/fax/hand to
the seller for his files. Then you have to report your sales and the tax
you collect on them. Depends on the state and total sales, they may require
a monthly or quarterly report.
Are you now collecting sales tax? Do you plan to? If you are a legitimate
business and collect tax on goods sold, follow the law. If you are selling
to friends and figure you can save a few bucks, it is not worth the hassle
to avoid the tax. You will be audited. Your supplier will be audited and
you name will be know to the tax department so they can check on you. Given
the bookkeeping required, it is sometimes cheaper to just pay the tax.
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