Article 16. Resale Certificates; Demonstration; Gifts and Promotions

Source: https://govt.westlaw.com/calregs/Browse/Home/California/CaliforniaCodeofRegulations?guid=IDA4849804C8311EC89E5000D3A7C4BC3&originationContext=documenttoc&transitionType=Default&contextData=(sc.Default)

Source: https://govt.westlaw.com/calregs/Document/IDA69DB514C8311EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

I HEREBY CERTIFY:

1. I hold valid seller's permit number

2. I am engaged in the business of selling the following type of tangible personal property:

3. This certificate is for the purchase from____________________[Vendor's name] of the item(s) I have listed in paragraph 5 below.

4. I will resell the item(s) listed in paragraph 5, which I am purchasing under this resale certificate in the form of tangible personal property in the regular course of my business operations, and I will do so prior to making any use of the item(s) other than demonstration and display while holding the item(s) for sale in the regular course of my business. I understand that if I use the item(s) purchased under this certificate in any manner other than as just described, I will owe tax based on each item's purchase price or as otherwise provided by law.

5. Description of property to be purchased for resale:

6. I have read and understand the following:

For Your Information: A person may be guilty of a misdemeanor under Revenue and Taxation Code section 6094.5 if the purchaser knows at the time of purchase that he or she will not resell the purchased item prior to any use (other than retention, demonstration, or display while holding it for resale) and he or she furnishes a resale certificate to avoid payment to the seller of an amount as tax. Additionally, a person misusing a resale certificate for personal gain or to evade the payment of tax is liable, for each purchase, for the tax that would have been due, plus a penalty of 10 percent of the tax of $500, whichever is more.

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Name of Purchaser

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Signature of Purchaser, Purchaser's Employee or Authorized Representative

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Printed Name of Person Signing

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Title

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Address of Purchaser

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Telephone Number

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Date

Source: https://govt.westlaw.com/calregs/Document/IDA6FF5CD4C8311EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

I HEREBY CERTIFY:

1. I hold valid California seller's permit no.

2. I am engaged in the business of selling the following type of property:

3. This certificate is for the purchase from____________________[Vendor's name] of the item(s) I have initialed in paragraph 5 below.

4. I will resell the following item(s) I am purchasing under this resale certificate in the form of tangible personal property in the regular course of my business operations, and I will do so prior to making any use of the item(s) other than demonstration and display while holding the item(s) for sale in the regular course of my business. I understand that if I use the item(s) purchased under the certificate in any manner other than as just described, I will owe use tax based on each item's purchase price or as otherwise provided by law.

5. I am purchasing for resale under this resale certificate the item(s) indicated by my initials below (not an X or similar mark):

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____ Automobile parts

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____ Fisheye eliminator

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____ Polishes/Wax

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____ Sealers

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____ Clear Coats

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____ Glues/Adhesives

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____ Primers

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____ Electrical Tape

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____ Hardeners

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____ Putties

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____ Fillers

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____ Paints

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____ Rust Protectors

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Other (specify items)

6. I have read and understand the following:

Note: Auto body repair and paint shops are generally considered consumers of the items listed below regardless of the manner in which they bill their customers for repairs and painting. Thus, this certificate generally may not be used to purchase these items. If a person does, in fact, resell any of the following items prior to use, the person may take a deduction on his or her sales and use tax return to offset the amount paid as tax (the deduction is taken under “Tax-paid purchases resold”). If, however, a person is purchasing one of these items exclusively for resale in the form of tangible personal property and not for consumption during repairs, painting, or the like, this certificate may be used to purchase such item by listing it under “Other” above.

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Abrasives

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Equipment repair parts

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Masks

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Reducers

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Books

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Goggles

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Metal conditioners

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Respirators

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Cans

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Hand cleaners

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Paint remover

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Rubbing compounds

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Cleaning solvent

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Manuals

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Plastic bottles

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Rubbing machines

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Color charts

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Masking paper

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Polishing compounds

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Thinners

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Equipment

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Masking tape

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Polishing machines

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Touch-up bottles

7. I have read and understand the following:

For Your Information: A person may be guilty of a misdemeanor under Revenue and Taxation Code section 6094.5 if the purchaser knows at the time of purchase that he or she will not resell the purchased item prior to any use (other than retention, demonstration, or display while holding it for resale) and he or she furnishes a resale certificate to avoid payment to the seller of an amount as tax. Additionally, a person misusing a resale certificate for personal gain or to evade the payment of tax is liable, for each purchase, for the tax that would have been due, plus a penalty of 10 percent of the tax or $500, whichever is more.

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Name of Purchaser

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Signature of Purchaser, Purchaser's Employee or Authorized Representative

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Printed Name of Person Signing

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Address of Purchaser

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Title

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Date

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20

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Telephone Number: