Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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R

475.0000 RESALE CERTIFICATES—Regulation 1668

Annotation 475.0003

475.0003 Acceptance of a Resale Certificate. A retailer has a policy that limits sales of a particular item to no more than three per customer. Some individuals or businesses bypass the three-item limit by having multiple individuals purchase three items each. The retailer reports and pays sales tax on the sales, and collects sales tax reimbursement from the customers. The individuals or businesses in question subsequently consolidate all the register receipts and submit them along with a resale certificate to the retailer for a refund of the sales tax reimbursement paid. The retailer has properly treated these transactions as retail sales subject to tax and is not required to accept the resale certificate as a result of the subsequent events. If otherwise appropriate, the purchaser may take a tax-paid purchase resold deduction on subsequent sales of the items. 11/17/97. (M99–1).