Recent Sales and Use Tax Developments
Items Purchased for Resale and Later Used by the Dealer. Items purchased for resale are not subject to sales tax at the time of purchase by the dealership. However, if instead of selling an item, the dealership uses it in its business, then the dealership has to pay use tax at six percent (6%) of the cost of the item. For example, if the dealership takes a part from inventory to repair a service vehicle, the dealership has lost its resale exemption and must pay use tax on the part.
Recent Sales and Use Tax Developments