Resales license

Arizona uses the term "transaction privilege tax" TPT when referring to sales tax. Businesses that buy at wholesale and then resell the products may obtain an exemption from paying TPT when buying the company resale inventory. Resellers, like any other Arizona business, must first register to obtain a sales-tax license for collecting TPT. The resellers may then obtain tax exemptions on resale products by using the TPT license number and Arizona resale certificates. Download the "Arizona Joint Tax Application" form.

You use this form to register for an Arizona sales-tax TPT license. Resellers can use the license number issued by the Department of Revenue when claiming TPT exemptions for resale products.

If you do not hold a seller's permit and will make sales during temporary periods, such as Christmas tree sales and rummage sales, you must apply for a temporary seller's permit. Such permits are normally issued to selling operations lasting no longer than 90 days at one location. There are other activities that may qualify a selling operation as being engaged in business in California. Due to the various rules that apply, you should contact our Customer Service Center to determine if you must obtain a permit.

In general, retail sales of tangible personal property in California are subject to sales tax. Examples of tangible personal property include such items as furniture, giftware, toys, antiques, clothing, and so forth. In addition, some service and labor costs are taxable if they result in the creation of tangible personal property.

For example, if you make a ring for a specific customer, you are creating tangible personal property. Therefore, the total amount you charge for the ring including the charge for labor would be taxable. This would also be the case if the customer provided the materials for making the ring. However, labor costs for making repairs resetting a diamond, for example are not taxable since they do not result in the creation of tangible personal property.

You are only repairing or reconditioning existing property. An explicit statement that the described property is being purchased for resale. The date of the document. The signature of the purchaser or someone approved to act on his or her behalf.

If you are a supplier located in Wyoming and your buyer is located in Wyoming, then there is no problem. If, however your buyer is from a non-reciprocating state outside Wyoming, you would not be able to accept their out of state resale certificate. The last and ostensibly most important thing is to make sure the resale certificate is valid and not expired.

As the burden of proof may fall upon you, thoroughly checking and verifying that you are presented with a legitimate resale certificate is paramount. Almost all states in one form or another have a way for you to check the validity of a resale certificate presented to you. Common details listed on the Wyoming resale certificate include the name company or individual and address of the buyer, a descriptive detail of the goods being purchased, a reference that this merchandise is intended to be resold and the accurate Wyoming sales tax number.