By: Greg J. Duff, Cairncross & Hempelmann, P.S.
Effective January 1, 2010, the resale certificate will be replaced with a reseller permit issued by the Washington State Department of Revenue to reduce sales tax noncompliance. A 2008 study by the Washington legislature estimated that each year there is more than $100 million in unpaid state and local sales and use taxes. Reseller permits are free and will be issued by the Washington State Department of Revenue to businesses that make wholesale purchases, such as restaurants. The permits allow businesses to purchase items or services for resale without paying retail sales tax.
How can my business obtain a reseller permit?
Beginning in September 2009, the Washington State Department of Revenue will automatically issue reseller permits to businesses that make wholesale purchases, as determined by the Department based on business activities, tax returns, and other information available to the Department. Businesses that do not automatically receive a permit may apply to the Department, and the Department will rule on an application within 60 days of receipt. Permit applications will be available from the Department shortly. Currently, the existing resale certificate form continues through December 31, 2009 [...]