Have you applied for your reseller’s permit yet? If you haven’t consider this information from the Department of Revenue (DOR): Many businesses have said they will not sell at wholesale and will charge sales tax unless a reseller permit is presented by January 1 2010. Plus without the permit you will have to go through a very cumbersome and confusing process in order to secure a rebate for the sales taxes you pay when purchasing supplies.
DOR informed AGC that only a fraction of contractors likely to qualify for a reseller permit have applied.
If you make purchases at wholesale apply now for a reseller permit. Print the one-page application at http://dor.wa.gov/resellerpermit and fax or mail it in to DOR. Businesses registered with My Account at www.dor.wa.gov can also choose to instantly apply online. Call DOR at 1-800-647-7706 for help.
On January 1 2010 reseller permits issued by DOR replace self-issued resale certificates. If approved contractors’ permits are valid for 12 months. Resale certificates will no longer be valid after December 31 2009.
If a business does not have a reseller permit it can recoup sales tax paid on qualifying items by taking a “Taxable Amount for Tax Paid at Source” deduction or by requesting a refund. But it is better to avoid this hassle and apply for the reseller’s permit now.
In the last session of the State Legislature AGC and its members successfully defeated a much more onerous sales tax bill that would have required contractors to pay sales tax up front and then apply for a tax credit. The reseller permit process is a more workable system for contractors – but only if they take advantage of it by applying for the permit!
If you have questions contact AGC’s Legislative Office at 360-352-5000.