Question about reselling products?

Question

I am forming a small niche business where I procure products and resell them to businesses, government entities, etc.

frequently, I will purchase something at a large retail outlet (such as costco, walmart, etc) and resell it.

My question is......does the store have to accept my resale certificate and not charge me sales tax? Is there a law regarding this?

I frequently pay sales tax and than resell it and charge my customer sales tax.

Answer 1

There's no law requiring a retailer to sell "wholesale" (honor/accept a resale certificate).

However, both Costco and Sams Club certainly DO honor them.  Check at the customer service desk next time you're in...you may have to change to a business acct if you only have a reg. acct now.  Then for future purchases, at checkout, you just let them know what items are for resale, what are personal, and they'll ring it up correctly.

Also....check with your state about getting refunds/credits for tax you've paid on items you resold.  Some states let you credit this when you file/pay your quarterly state biz taxes.