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Aug. 30, 2010 at 8:57am Reseller permits lead to increased taxable building supply salesAn estimated $24.4 million in additional state and local sales taxes have been reported by the construction industry since Washington shifted to a more tightly controlled reseller permit system in January. A higher percentage of businesses are paying sales tax on construction materials since the state eliminated the self-issued resale certificates that allowed a business to not pay sales tax if it declared the tax would be collected when the product was resold to the final consumer. Not all such products were resold and the state estimated it was losing up to $100 million annually because of misuse of resale certificates across all industries. Vendors are required to collect sales tax when selling products to customers, except when a reseller permit or other exemption certificate is presented. Wholesalers and other businesses can instantly check their customers' reseller permit status by clicking here. Plenty more in the Archives The comments function of the Business Examiner community is meant to encourage conversations and spark ideas about business issues in the South Sound. The feature is free and open to members of the public who register basic log in information. Comments should be concise, on topic and avoid attacks, profanity or abusive language or content. Comments that are deemed to violate this policy will be removed.
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