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 475.0510

475.0510 Validity of Resale Certificate. A taxpayer sells silk screen inks, supplies, and equipment, including ink thinners. The taxpayer accepts resale certificates in good faith from customers known to be in the silk screen printing industry. In addition to selling inks ex-tax, the taxpayer sold ink thinners ex-tax. Although it may be assumed that the thinners had evaporated before the products to which they had been applied were sold, recognition must be given to the fact that a resale certificate which specifically mentioned thinners was issued by the purchaser and accepted in good faith pursuant to section 6092. Accordingly, it relieves the seller from liability for the sales tax. In this situation, the purchaser, having given the certificates, should be held liable for the use tax on the purchase. 5/8/72.