Be aware: verify exemption certificates or you will pay tax on your exempt sales. Part 1/2
The general rule is all tangible personal property is subject to sales tax unless specifically exempt, and all services are non-taxable unless specifically listed as taxable under state and local law. But in state tax, exceptions and differences apply, so if your customer claims they are exempt from tax due to their industry, status, or activities, documentation proving this must generally be provided to you. This documentation is known as an “exemption certificate”, the most commonly encountered of which is the “resale certificate”. All taxable sales under state law will maintain their status as taxable unless you can provide an auditor with one of these certificates.