Re: Newbie...out of state resale

Your California resale certificate waives paying sales tax on anything
(almost) because they assume you collect sales tax from your customer.
Selling out of state exempts you from collecting sale tax on that
sale. You're home free. ed
Katie wrote:
aust.jake@xxxxxxxxx wrote:
I'm going to be purchasing printing from a California printer for
resale to a business in New York. I have a seller's permit in
California (well almost...I should have it soon).

I am assuming I can use a resale certificate to avoid paying sales tax
to the printer. Then on my sale to the business in New York I shouldn't
be liable to pay BOE because it is an out of state sale, correct? Am I
missing anything here?

I am new to resale...



Yes, you can give the printer a resale certificate. However, if there
are special printing aids (such as silk screens, lithographic plates,
color separations, etc.) that are reusable and are unique to your job,
you cannot purchase those for resale unless you actually resell them to
your NY customer. Otherwise, the sale of those items to you by the
printer is subject to sales tax.

The sale to the NY customer is exempt as an interstate sale. You must
retain documentation of the interstate shipment, whether made by you or
by the printer.

Katie in San Diego

The foregoing is intended for educational purposes only and does not
constitute legal or professional advice. Nothing contained herein is
intended to be used, or can be used, by any person to avoid penalties
that may be assessed under federal or any state law.

.

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