Out-of-State Resale Certificates: Who Doesn’t Accept Them?

Buying items in bulk for resale is expensive enough without paying sales tax on the purchase. That’s why a resale certificate is commonly used in these transactions—it gives businesses the right to make these kinds of purchases without being required to pay sales tax. But differing state laws can complicate these transactions. 

In some cases, a business that is based in one state cannot carry out a tax-exempt transaction of this nature in another state. Their home state’s resale certificate will not be accepted. This means it will be necessary to find another way to make a tax-exempt transaction, like registering with the state in which they’re trying to make a purchase.

There is 1 district and 11 states that do not accept out-of-state resale certificates. Out-of-state businesses that want to avoid paying sales tax on items for reselling will not be able to use their standard resale certificate when making purchases in these states.