Resale certificates by state: 2025 Guide | Avalara
Sales tax exemptions are a tough nut to crack. Each state has its own rules about what is or isn’t exempt. One of the few things consistent across the board: Resellers can typically skip the tax on goods they’ll be reselling. How that exemption shakes out is a little less uniform.
Most states have their own resale certificates. Others, like Colorado and North Carolina, just use multistate certificates. Mississippi doesn’t even require a certificate, as long as the reseller has a valid sales tax permit.
If you’re buying or selling goods for resale in multiple states, there’s a lot to keep track of.
To that end, here’s an overview of basic resale exemption information, as well as a state-by-state guide to certificate requirements.
FAQ:
- What is a resale certificate?
- What’s the difference between an exemption certificate and a resale certificate?
- Can I use the same resale certificate in every state?
- How does a business get a resale certificate?
- Are sellers required to accept resale certificates?
- How long do you need to keep exemption certificates on file?
- How can I get information for my state?
What is a resale certificate?
A resale certificate is a document that allows a business to make exempt purchases based on the assumption the goods will be resold and the sales tax will be paid by the end consumer.
Purchasers apply for resale certificates and provide them to sellers at checkout.
Sellers collect and validate certificates prior to exempting tax. Sellers store each certificate, so it’s accessible for future purchases or to validate the exemption if the business is audited.
Drop shipping can further complicate resale certificates or sales tax collection. Things get trickier when you go from a business selling to a customer, to a business purchasing from a drop shipper for delivery to a customer. Who collects what largely depends on who has nexus (and where everyone is located). We cover the sales tax implications of drop shipping in a post of its own.
What’s the difference between an exemption certificate and a resale certificate?
An exemption certificate is a document that allows tax-exempt purchases based on the status or circumstances of the purchaser.
A resale certificate is a document that allows a business to make tax-exempt purchases based on the assumption the goods will be resold and the sales tax will be paid by the end consumer.
Some states use the same document for both exemption and resale certificates. Others have different documents for each.
Can I use the same resale certificate in every state?
No. There’s no one universally accepted resale certificate. However, there are two types of multistate resale certificates:
- Streamlined Sales Tax (SST) Certificate of Exemption
- Multistate Tax Commission (MTC) Uniform Sales & Use Tax Resale Certificate
Not every state accepts these certificates. You’ll need to obtain a valid state-issued certificate in those that won’t accept either.
How does a business get a resale certificate?
To get a resale certificate, a business must obtain a sales tax permit. Then that business can apply for the proper sales tax exemption forms, including resale certificates.
Most states accept out-of-state resale certificates, but not all. It’s important to make sure you have the right certificate if you’re purchasing items for resale outside of your home state.
Are sellers required to accept resale certificates?
In a word, no. Sales tax obligations are imposed by the state or local tax jurisdiction, not individual retailers.
If anything is out of order with the certificate, the seller is responsible for any uncollected sales tax. For that reason, sellers may choose not to honor resale certificates.
If a buyer pays sales tax on goods for which they’re entitled to an exemption, they can request a refund from the state tax authority.
How long do you need to keep exemption certificates on file?
Purchasers should maintain certificates for as long as they’re valid. In some cases, resale exemptions are issued for individual purchases. In others, they’re valid for several years, or even indefinitely, as long as the information is correct. Changes to a business, such as name, address, and ownership, can void an exemption certificate.
Sellers should hold on to resale certificates until the statute of limitations expires on the purchase, at a minimum. Each state has its own time frame for sales tax assessments. If you’re audited and you cannot produce a certificate to justify an exempt sale, you may be responsible for the applicable taxes, as well as potential penalties.
How can I get information for my state?
We worked with Sales Tax Institute to create a State-by-State Exemption Certificate Guide to help you identify which certificates are required for your state. In it, you’ll also find information on how often you should renew your documentation and links to the forms you need.
States may change acceptance policies for their certificates without notifying the Multistate Tax Commission (MTC). Check with the state to determine current policy.
Streamlined Sales Tax (SST) note: Not all states allow all exemptions listed on the SST Exemption Certificate, but a business does not need to be registered through the SST Registration System to use the Streamlined Exemption Certificate.
Expiration periods vary by state and exemption certificate, and most states have different certificates for different situations or entities. Check with your state to get the most up-to-date information.
Please consult a sales tax expert who can discuss your specific requirements. And consider exploring how automating exemption certificate management can help you streamline tax compliance.
Reference
Alabama Department of Revenue FAQ
Accepted exemption forms
Sales tax permit
Expiration period
Renew annually
Alaska doesn’t have a state sales tax, but local sales tax is permitted and is in effect in multiple jurisdictions.
Sales tax exemptions are also determined by individual municipalities.
Reference
Tax exemption letter of response
Exemption certificate directory
Exempt resellers can use the MTC Uniform Sales & Use Tax Resale Certificate
Reference
Arizona Department of Revenue TPT exemptions page
Accepted exemption forms
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Expires if not used within a 12-month period
Reference
Accepted exemption forms
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Renew every 3 years
Delaware doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.
Reference
Accepted exemption forms
Annual resale certificate
Expiration period
Certificates expire on December 31 each year; new resale certificates are issued annually
Reference
Accepted exemption forms
Expiration period
Expires annually
Reference
General excise and use tax information
Accepted exemption forms
- Resale Certificate General Form 1
- Resale Certificate General Form 2
- Resale Certificate Special Form
- MTC Uniform Sales & Use Tax Resale Certificate
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Renew every three years
Reference
Accepted exemption forms
Expiration period
Does not expire
Reference
Accepted exemption forms
Expiration period
Three years
Reference
Accepted exemption forms
Expiration period
Expires if not used within a 12-month period
Reference
Accepted exemption forms
- Resale certificate | Form 51A105
- MTC Uniform Sales & Use Tax Resale Certificate
- SST Certificate of Exemption
Expiration period
Valid as long as there is no change in character of purchaser’s operation and the purchases are of tangible personal property
Reference
Accepted exemption forms
Resale certificate | Application
Expiration period
Valid for the period indicated on the certificate
Reference
Accepted exemption forms
Expiration period
Five years
Reference
Accepted exemption forms
Expiration period
Valid until revoked by taxpayer or Comptroller
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Four years
Reference
Retailers and wholesalers industry guide
Accepted exemption forms
Expiration period
Does not expire unless information changes; should be updated every three to five years
Reference
Accepted exemption forms
Mississippi does not issue resale exemption certificates. Goods for resale can be purchased tax exempt using a valid sales tax permit.
Montana doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.
Reference
Accepted exemption forms
Expiration period
Valid indefinitely
Reference
Accepted exemption forms
Expiration period
Valid until revoked in writing
New Hampshire doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.
Reference
Sales tax exemption administration bulletin
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Non-taxable transaction certificates (NTTCs)
Accepted exemption forms
Non-taxable transaction certificate | Type 2
Resale certificate | Type 5
Border states resale certificate
Out-of-state resale certificate | Type NTTC-OSB
Expiration period
No stated expiration period
Reference
Exemption certificate information
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Blanket certificate is valid as long as purchaser is making recurring purchase
Reference
Accepted exemption forms
Expiration period
Two years
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Blanket certificate is valid as long as purchaser is making recurring purchases
Oregon doesn’t have a state sales tax, or similar. Therefore, an exemption certificate is not applicable.
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Sales tax information (translation available)
Reseller information (translation available)
Accepted exemption forms
Expiration period
Three years
Reference
Information for exempt organizations
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Valid until canceled or revoked in writing
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Valid until revoked in writing by the purchaser
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Certificate remains valid as long as purchaser is making recurring purchases
Reference
Exemption certificate information
Accepted exemption forms
Expiration period
Valid indefinitely when used as a blanket certificate; otherwise valid for a single purchase
Reference
Cigarette resale exemption certificates information
Accepted exemption forms
Expiration period
Valid until notice from Department of Taxation that certificate is no longer acceptable
Reference
Reseller guides for qualified industries
Accepted exemption forms
Expiration period
48 months, but may expire in 24 months for some businesses
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Reference
Accepted exemption forms
Expiration period
Blanket certificate remains valid as long as purchaser is making recurring purchases
Reference
Publication 201, Part 11: What is Exempt?
Accepted exemption forms
Expiration period
Valid indefinitely, but should be reviewed periodically
Reference
Accepted exemption forms
Expiration period
No stated expiration period
Managing resale exemption documents for your business
Managing exemption certificates can be challenging on both sides of the register. Not having the right documents can lead to costly mistakes.
Automation can help you keep track of requirements and renewals. Using an automated solution that stores documents in the cloud is an efficient way to supply or retrieve certificates, and to find and access the forms you need in the event of an audit.
Avalara has tax compliance solutions to make the process easier for both buyers and sellers of tax-exempt purchases:
- Avalara Exemption Certificate Management can help businesses large or small with collecting, validating, storing, and accessing exemption and resale certificates.
- Avalara Vendor Exemption Management can help you obtain and supply the right documents to support your exemption requests.
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