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Effective January 1, 2010, the current resale certificate will be replaced with a reseller permit issued by the Department of Revenue in accordance with Senate Bill 6173. Reseller permits are free and will be issued to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale without paying retail sales tax.
How do I get a reseller permit?
The Department of Revenue will issue the first round of resellers’ permits based on specific criteria. Businesses that don’t automatically receive a reseller permit may apply directly to the Department of Revenue. Beginning in September 2009, online applications will be accepted and paper applications may be downloaded through the Department of Revenue website at www.dor.wa.gov.
How soon will I know if I’m getting a permit automatically?
In September, businesses will be notified if they are getting a permit. In October, those receiving permits will get them in the mail. Note that there is a form in the September mailing you will need to fill out, even if you are prequalified, and mail back to the Department of Revenue to receive the actual permit in October.
What if I don’t get a reseller permit but need to make purchases for resale?
Buyers without a reseller permit must pay retail sales tax on purchases, but can take a Tax Paid at Source deduction on their tax return, or request a refund.
How long is a reseller permit valid?
Reseller permits for the construction industry are valid for 12 months. Qualifying contractors must reapply each year and provide additional information detailing materials and labor purchases. Details are provided on the application form, which will be available beginning September 2009.
If you have any questions, you can contact the Department of Revenue at (800) 647-7706, or email reseller@dor.wa.gov.