Reseller Permit

Reseller Permit. I’m Greg Martin with today’s Line On Agriculture.

Do you buy goods to resell or sell to customers at wholesale? If so you need to be aware of some changes according to Joanne Gordon, a Tax Policy Specialist with the Washington State Department of Revenue’s Legislation & Policy Division.

GORDON: Currently when farmers purchase their feed, seed, fertilizer, pesticides and a couple of other things, those items under the statute are wholesale sales and currently when a farmer goes into his supplier to buy those types of items they give what we currently call a resale certificate.

This is where things are about to change somewhat for you.

GORDON: What happened during this last legislative session is that there was a bill that was passed that essentially does away with the resale certificate. Currently a resale certificate is something that a business who is going to resell, they give their supplier and it’s a self issued document.

Due to some ongoing abuse issues the legislation looked at and changed the way wholesale was being handled.

GORDON: We know that there is a certain amount of misuse or abuse of the resale certificate that goes on so what happened with the legislature is that in order to combat if you will that misuse or abuse of the resell certificate have eliminated that resell certificate and then January 1 resell certificates will be replaced with what were calling reseller permits. What the difference is, is that the Department will be issuing the reseller permits

And depending on your current status with the Department, you may not need to do anything.

GORDON: Those folks that we already know because of their reporting history who are say manufacturers, wholesalers, retailers, they’ll automatically receive a reseller permit in the mail and then other folks that believe they are entitled to the reseller permit, they will be able to apply to the Department for a reseller permit.

For more information, visit the Washington Department of Revenues website at dor.wa.gov.

That’s today’s Line On Agriculture. I’m Greg Martin on the Northwest Ag Information Network.