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INSTRUCTIONS REGARDING
UNIFORM SALES & USE TAX EXEMPTION CERTIFICATE
To Seller’s Customers:
In order to comply with most state and local sales tax law requirements, the Seller must have in its files a properly executed exemption
certificate from all of its customers (Buyers) who claim a sales/use tax exemption. If the Seller does not have this certificate, it is
obliged to collect the tax for the state in which the property or service is delivered.
If the Buyer is entitled to a sales tax exemption, the Buyer should complete the certificate and send it to the Seller at its earliest
convenience. If the Buyer purchases tax free for a reason for which this form does not provide, the Buyer should send the Seller its
special certificate or statement.
Caution to Seller:
In order for the certificate to be accepted in good faith by the Seller, Seller must exercise care that the property or service being sold is
of a type normally sold wholesale, resold, leased, rented, or incorporated as an ingredient or component of a product manufactured by
Buyer and then resold in the usual course of its business. A Seller failing to exercise care could be held liable for the sales tax due in
some states or cities. Misuse of this certificate by Seller, lessee, or the representative thereof may be punishable by fine,
imprisonment, or loss of right to issue a certificate in some states or cities.
Notes:
1. Alabama: Each retailer shall be responsible for determining the validity of a purchaser’s claim for exemption.
2. Arizona: This certificate may be used only when making purchases of tangible personal property for resale in the ordinary
course of business, and not for any other statutory deduction or exemption. It is valid as a resale certificate only if it contains
the purchaser’s name, address, signature, and Arizona transaction privilege tax (or other state sales tax) license number, as
required by Arizona Revised Statutes § 42-5022, Burden of proving sales not at retail.
3. California: a) This certificate is not valid as an exemption certificate. Its use is limited to use as a resale certificate subject
to the provisions of Title 18, California Code of Regulations, Section 1668 (Sales and Use Tax Regulation
1668, Resale Certificate).
b) By use of this certificate, the purchaser certifies that the property is purchased for resale in the regular course
of business in the form of tangible personal property, which includes property incorporated as an ingredient or
component of an item manufactured for resale in the regular course of business.
c) When the applicable tax would be sales tax, it is the Seller who owes that tax unless the Seller takes a timely
and valid resale certificate in good faith.
d) A valid resale certificate is effective until the issuer revokes the certificate.
4. Colorado, Hawaii, Illinois, and New Mexico: these states do not permit the use of this certificate to claim a resale exemption for
the purchase of a taxable service for resale.
5 Connecticut: This certificate is not valid as an exemption certificate. Its use is limited to use as a resale certificate subject to
Conn. Gen. State §§12-410(5) and 12-411(14) and regulations and administrative pronouncements pertaining to resale
certificates.
6. District of Columbia: This certificate is not valid as an exemption certificate. It is not valid as a resale certificate unless it
contains the purchaser’s D.C. sales and use tax registration number.
7. Florida: The Department of Revenue no longer accepts out-of-state sales tax exemption certificates.
8. Georgia: The purchaser’s state-of-registration number will be accepted in lieu of Georgia’s registration number when the
purchaser is located outside Georgia, does not have nexus with Georgia, and the tangible personal property is delivered by drop
shipment to the purchaser’s customer located in Georgia.
Revised 5/18/2016
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