50 State Survey – Occasional Sales and Resale Exemptions to State Sales Tax
The majority of states have implemented a sales tax (or its equivalent) on the sale of goods and services within their state. States have also exempted or provided reduced rates for various sale types and entities operating within the state. The 50 state survey provided in this article seeks to summarize the states that provide the most common sales tax exemptions sought after by parties involved in the acquisition of all or substantially all of a business’ assets: an occasional sale exemption and a sale for resale exemption. Additionally, the 50 state survey provides useful links and webpage references for your convenience in obtaining more information directly from the applicable state tax agency and, if applicable, copies of exemption certificates required to claim an occasional sale exemption or resale exemption.
Please note, the 50 state survey is not exhaustive of all exemptions provided by each state and does not address other state or local taxes which a transaction may be subject to (e.g., bulk sale taxes, successor liability taxes, use taxes, jurisdictional specific taxes (e.g., Washington’s business and occupation tax separate from its sales tax), etc.). Additionally, states that offer more than one exemption certificate to claim certain exemptions may have limitations and guidelines as to which certificate is proper to use depending on the assets and parties involved in a transaction. Although certain business assets may be exempt from a state’s sales tax by use of an occasional sale exemption or resale exemption, parties should be mindful of other taxes such exempted assets could be subject to. Consequently, readers should note the importance of engaging a legal or tax professional when determining which sales tax exemptions your contemplated transaction may qualify for.
DISCLAIMER: This content is current as of July 12, 2023 only. Do not rely on this information after July 12, 2023. Consult a lawyer for the current state of law for this, and any other, area of law.