California Resale Certificate Rules and Regulations
Dear Customer:
In compliance with the California Sales and Use Tax Laws, it is necessary that we have from all our customers,
a VALID and SIGNED RE-SALE CERTIFICATE, with YOUR State Sales Tax Permit Number, to show that the
merchandise you are purchasing from us has been purchased either for re-sale or personal use.
The good faith of the seller will be questioned if he has knowledge of facts which give rise to a reasonable
inference that the purchaser does not intend to resell the property as for example, knowledge that a purchaser
of particular merchandise is not engaged in the business of selling that kind of merchandise.
Under “DESCRIPTION OF PROPERTY TO BE PURCHASED” there may appear:
(1) Either an itemized list of the particular property to be purchased for resale, or
(2) A general description of the kind of property to be purchased for resale. Such
certificate is good until revoked in writing.
Please Provide YOUR SALES TAX PERMIT NUMBER, along with YOUR signature and address
in the “RESALE CERTIFICATE” below to avoid the collection of sales taxes. If a
Resale Certificate is not provided to us prior to the first invoice or billing from CARTONXPRESS, INC.
it will be presumed that the sale is intended for non-resale AND at which point, sales tax will be collected.
I HEREBY CERTIFY:
The tangible personal property described herein which I shall purchase from:
CartonXpress, Inc.
These will be resold by me in the form of tangible personal property, PROVIDED, however, that in the event any
or all such property is used for any purpose other than retention, demonstration, or display while holding it for
sale in the regular course of business. It is understood that I am required by the Sales and Use Tax Law to
report and pay for the tax, measured by the purchase price of such property.
Description of property to be purchased: Printing and printing aids.
I have read the following:
For your information: A person may be guilty of 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.