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E accepted in good faith by the seller, the seller must exercise care that the property being sold is of a type normally sold wholesale, resold, leased, rented, or utilized as an ingredient or component part of a product manufactured by the buyer in the usual course of his business. A seller falling to exercise due care could be held liable for the sales tax due in some states or cities. Misuse of this certificate by the seller, lessor, buyer, lessee, or the representative thereof may be punisha.

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However, as a best practice we suggest updating certificates every three to four years. We believe this is important because a lot can change in 3-4 years.

Renewing Your Certificate: Your Consumer's Certificate of Exemption will be valid for a period of five (5) years. If you wish to renew your exemption, you must submit another Application for Consumer's Certificate of Exemption (Form DR-5) and copies of the required documentation.

All locations located in the state must apply for and receive an exemption, even if the business headquarters are located out of the state. The application is Form R-1370, Purchase of Lease or Rental Vehicles Tax Exemption Application, and may be found on the Department's website.

Step 1 Begin by downloading the Colorado Sales Tax Exemption Certificate Form DR 0563. Step 2 Identify the business name and business address of the seller. Step 3 Identify the name and business address of the buyer.

When purchasing items for resale, registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate. A resale certificate indicates the item was in good faith that the purchaser would resell the item and report tax on the final sale.

Most state sales tax exemption certificates do not expire and the seller is required to maintain exemption certificates for as long as sales continue to be made to the purchaser and sales tax is not collected. Exemption certificates are not required for items that are not taxable by statute.

To qualify to be exempt from sales tax, the items you buy must not be used in your normal course of business. For example, you can't buy copy paper and ask for a sales tax exemption, because you are using that copy paper in your office.

Sales tax exemption certificates enable a purchaser to make tax-free purchases that would normally be subject to sales tax. The purchaser fills out the certificate and gives it to the seller. The seller keeps the certificate and may then sell property or services to the purchaser without charging sales tax.

In general, clothing, groceries, medicines and medical devices and industrial equipment are sales tax exempt in many states (but don't assume they'll be exempt in all states. Every state is different when it comes to sales tax!)

Form STAX-1, Application for Sales Tax Exemption; a copy of your current exemption letter with your E99# on it; a copy of your Articles of Incorporation, OR if not incorporated, your Constitution;

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232