Recent Sales and Use Tax Developments
Purchases on Which a Dealer Does Not Have to Pay Sales Tax.
When the dealership
purchases parts and supplies, the dealership must decide whether the
purchase is eligible for the "resale" exemption so that the dealer does not
have to pay sales tax on the purchase. A sale for resale is a transfer not
for consumption or use by the dealer which is to be resold by the dealer in
the regular course of business. Sales for resale may only be made to
persons with a sales tax license.
These are the kinds of items that a dealership can generally purchase sales
tax-free because of the resale exemption:
| Batteries | Hoods | |||
| Brackets | Hub caps | |||
| Bulbs | Radiators | |||
| Bumpers | Rocker panels | |||
| Cab corners | Shock absorbers | |||
| Chassis parts | Side molding | |||
| Doors | Spark plugs | |||
| Door guards | Tires | |||
| Door handles | Trim | |||
| Engine parts | Trunk lids | |||
| Fenders | Wheels | |||
| Floor mats | Window glass | |||
| Grills | Windshield ribbon | |||
| Headlamps | Windshields |
Recent Sales and Use Tax Developments