State sales tax for resellers: resale certificates and refunds.

A resale certificate is a form you give a seller to say that you are buying an item to resell, so the sale is not taxed as a retail purchase. The state's theory is that tax is collected once, from the final customer. Most states with a sales tax have their own certificate, requirements, and rules, and some ask you to hold a seller's permit or registration first.

Whether a thrift store, garage sale, or estate sale will accept one is up to that seller. Many small sellers cannot, or simply do not, so resellers often pay tax on inventory at the register even when the state would not have required it. This is the situation where a refund comes in.

If you paid sales tax on an item that you then resold, the tax may not have been owed, because the purchase was for resale. Who can get it back depends on the state. In most states you start with the seller: ask them to refund the tax, or get a signed assignment or waiver from them before you file. In some states only the seller can claim the refund from the state. A smaller group of states lets you file the claim yourself. The "Who files the refund" column in the table below shows which applies, and the state may also ask for receipts, proof of the resale, or your registration details.

Deadlines and processing times vary a lot by state, and some states may not allow a refund claim for certain purchases at all. The table below names the form or portal each state uses. Read the state's instructions and ask a tax professional whether a claim makes sense for your amount of tax paid.

Sales tax you paid on inventory can also affect your cost basis, which is covered in the cost of goods sold guide. If you claim a refund, that changes what your cost was, so keep your books consistent. See also the Schedule C walkthrough.

Most US states now have marketplace facilitator laws that put the duty to collect and remit sales tax on the marketplace rather than on each seller. eBay says it acts as a marketplace facilitator: it automatically calculates, collects, and remits sales tax on orders shipping to all 50 states and Washington, D.C., and sellers cannot opt out. There is no fee for this, and there is generally nothing you have to file for those sales.¹

That does not remove every tax duty. eBay notes that you still owe income tax on your sales, and some states tax certain eBay fees.¹ Sales made outside eBay, such as at a local market or through another channel, are a separate question, so check the rules in your state. The 1099-K guide covers the income reporting side.

Rates and forms change. If something here is out of date, the state agency's website is the authority.

The Taxes tab in Strooply, available on Pro and Team plans, includes a State Sales Tax Reference where you pick your state and see its rate, resale certificate, refund form, and notes. Strooply's receipt scanning on Pro and Team plans keeps the receipts you would need for a claim. The app is a reference and record keeper. It does not file claims for you.