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SEE NEW POST-WAYFAIR GUIDANCE FOR SALES TAX COLLECTION FROM OUT-OF-STATE DEALERS HERE
New professional privilege tax exemptions are effective June 1, 2020. Click here for more information.

Retailer vs. Wholesaler

Your tax rate is also affected by whether you are a retailer or a wholesaler at a given location.  Most classifications include both a retailer rate and a wholesaler rate.  Once you determine whether you are a retailer or a wholesaler at a particular location, you will apply that rate to all of your taxable gross sales at that location.  You are a retailer if at least 50% of your taxable gross sales are retail sales.  You are a wholesaler if more than 50% of your taxable gross sales are wholesale sales.

A wholesale sale may include, but is not limited to:

  • a sale to a retailer for resale,
  • a sale of materials that become part of a product that is for resale, or
  • a sale of goods to the government or a governmental agency or to a nonprofit.

A retail sale is anything that is not a wholesale sale.