Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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475.0000 RESALE CERTIFICATES—Regulation 1668

Annotation 475.0025

475.0025 Consigned Merchandise. There is no legal requirement that consignees provide resale certificates to consignors of property. However, in situations where a consignor has purchased items for resale without the payment of tax, a resale certificate given by consignees will ensure that the consignor will not be held liable for tax in consigning the property. Since consignees are not purchasing the property, they may modify the language used in the resale certificate changing the word "purchase" to "taken on consignment" and issue this modified certificate to consignors who may be reluctant to consign merchandise without an accompanying exemption certificate. 5/4/93.