What is a Resale Tax Certificate?

Resale Certificates are used by businesses, when acquiring property for resale in its present form or as components of other property. States that allow for resale exemptions either accept a state issued resale certificate, or in some cases, a multi-state (multi-jurisdiction) certificate. A business, which is registered for sales and use tax, can use a resale certificate only when the merchandise being purchased is to be resold by the business; this is given to the vendor so that you will not be charged sales tax.