Friday, April 22, 2011

Paying Sales Tax on Resell Items

QUESTION
I attended a PTA & the Law workshop and learned that PTAs do not have to pay sales tax on items that they purchase to resell.  Earlier this year we held a spirit wear sale at our school, and paid sales tax when we purchased the items we sold.  Is there any way to get a refund on the sales tax? 

ANSWER
Yes.  You can apply to the Department of Revenue for a refund of tax paid on items that were resold, by completing the application and sending it to the Department.  If your PTA wants to avoid paying sales tax on items for resale in the future, you should apply for a Reseller’s Permit, which you can do either online or via a paper application.  More information is available here.