Attention resellers: Time’s a wasting to fill out your reseller’s permit

If you buy wholesale items and resell them at your business, you’ll want to read this: In 2010, things are changing. If you don’t have a permit, you’ll end up paying sales tax on your wholesale purchases.

Businesses that purchase items at wholesale and then resell them do not pay sales tax. Instead, sales tax is charged on the item when the consumer purchases it. In the past, businesses have used self-issued resale certificates to avoid paying sales tax. But the Department of Revenue estimated that about $100 million in sales tax was lost because some businesses were buying items for office use and not paying sales tax.

So: If you resell items, you must have a resell permit. You can get one here. DOR estimates that about 20,000 people haven’t bothered filling out the form yet.

What happens if you don’t have a form? Wholesalers may not sell to you, according to the Department. So, do it!

Tags: DOR, reseller permit, revenue, taxes