How to Apply for a Sales Tax Exemption

If you fall within a certain criteria, you may be able to benefit from some of the available sales tax exemptions. Farmers and religious organizations, for example, can benefit from the sales tax exemption. Check with your state for a listing of qualified circumstances or organizations for which you may qualify.

Instructions

Difficulty: Moderate

1. Contact your state's tax and finance department. You have the option of calling it or visiting its website.
2. Download or request the sales tax exemption form. If you are uncomfortable with downloading information from the Internet, call your state's department of tax and finance and request a form along with instructions via postal mail. Otherwise, you can download the forms from the website. Each state usually has detailed instructions on how to complete the sales tax exemption form.
3. Complete the form in accordance with the instructions. If you have questions or having difficulty completing the form, call and a representative can help you. Each form usually has a number to call if you have questions.
4. Present the completed form to each retailer for which you are purchasing tax-exempt items.

Tips & Warnings

• Don't let the wording confuse you. Some states refer to the tax exemption form as a tax exemption certificate.
• Always keep a copy of your completed tax exemption certificate with your accounting information. You need it when it when you file your taxes.
• You still must collect sales taxes on items you sell to non-exempt individuals or organizations, even if you're exempt from paying taxes on your purchase.