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Frequently Asked Questions About Repair Exemptions

5 - If I give my parts supplier a resale certificate, isn't everything I buy from that supplier exempt?

No. Suppliers must exercise reasonable judgment in accepting or acting on resale certificates. They must charge the tax on sales to repairers of goods that are obviously not for resale, including tools, stationery, soap, masking tape and sandpaper, even if repairers have provided a resale certificate. If suppliers fail to charge the tax where applicable, they can be held responsible for the uncollected tax.



 
Links for Repair Exemptions FAQs
Taxpayer Assistance
Frequently Asked Questions
Business Tax FAQs
Sales and Use Tax
Repair Exemptions FAQs
  1 - What about free installation?
  2 - What special rules apply to maintenance contracts?
  3 - Can I avoid the tax on my purchases of consumables by including their cost in my parts charge and collecting tax from my customers?
  4 - How do I claim exemption on materials I will resell?
  5 - If I give my parts supplier a resale certificate, isn't everything I buy from that supplier exempt?
 
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