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Can I sales tax exempt my tools I use with my state resale certificate?

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  • Can I sales tax exempt my tools I use with my state resale certificate?

    We have a resale certificate and would like to exempt our tools we use.
    We are trying to purchase the following items sales tax exempt:
    Hydroforce NM100660 Nautilus Side Rail Kit for Portable Extractors Storage Bag
    Hydroforce AX204BLU Nautilus 8 Pocket Blue Tool and Accessory Caddy Bag 19in X 24in
    Hydroforce AX205BLU Nautilus Blue Hose Caddy Storage Bag 24in X 18in X 6in

    Actually you would not be exempt.
    Just because you have a number does not mean you can use it.
    I might have to clarify that statement.
    Example a cleaning company that is purchasing a tool or a spray cannot use their ID.
    The same company that is purchasing a rental dehumidifier can use their ID.
    To be exempt, it has to be something you do not use, rather you resell it or rent it out can collect sales tax on the rental or resale of the item from the next customer.
    These are examples of items you are purchasing for your use and not resale or rental.
    So say you have a restoration job and you need to purchase a case of 3 mil contractor trash bags.
    As long as you resell the item on your clients invoice and collect tax you can purchase it for resale.
    This is super important that the techs in the field understand the rules.
    A lot of times they just grab a trash bag out of the truck and use it and never invoice for it. This is wrong. You need to line item the part for resale to the customer and then collect tax from your customer and forward it to the state. Florida tax system is unreasonable as they want you to adjust the tax rate based on the street address instead of based on the state rate. That is almost impossible to do...
    If you use a product up, example a cleaner, this can go either way. This requires that you itemize the gallon or the number of ounces used at the job. It is not OK to just clean a building, not itemize the products. This leaves you paying the tax when you purchase from your supplier. Items consumed or use up are typically items you cannot resale. The only way would be to separate the labor from the supplies and itemize the cost for each item. Some states the only way to resale a chemical is it has to be left with them when you leave the job. Now this is interesting as floor wax qualifies for resale and floor cleaning chemicals do not if you state has this rule. When you leave the job, the floor wax is still on the floor. You clean the same floor, the cleaner is not...
    Tools are never exemptible. The items above are categorized as tools.