Form ST-3 "Resale Certificate" - New Jersey

What Is Form ST-3?

Form ST-3, Resale Certificate, is a legal document you need to fill out to gain tax exemption for the goods you plan to resell in the State of New Jersey. The retailer who wishes to buy products to resell them later in an ordinary course of business may use this document to avoid paying sales tax twice. Instead, the retailer will charge sales tax to their customers on the final value of the goods that are resold. The resale certificate does not expire and will serve as evidence why sales tax was not collected on a particular transaction.

This form was released by the New Jersey Division of Taxation, a component of the state's Department of the Treasury. The latest version of the form was issued on March 1, 2017, with all previous editions obsolete.

How to Get a Resale Certificate in NJ?

Resale Certificates (or "Reseller Permits") are issued by the New Jersey Division of Taxation. Download a Form ST-3 fillable version from the link below.

A Resale Certificate is completed by a purchaser and handed in to the seller when buying items or supplies intended for resale (or for manufacturing goods that will later be sold). These kinds of purchases - accompanied by a completed Form ST-3 - can be legally made without paying sales.

Before filing the form, the purchaser must first apply for a New Jersey Business Tax Identification Number. The New Jersey Business Tax Identification Number is applied for via Form NJ-REG.

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How to Fill Out NJ Sales Tax Exempt Form ST-3?

The purchaser of the goods for resale is required to add the following information to the NJ ST-3 Form:

  1. Name the seller of the merchandise, enter the seller's address, and the actual date of the transaction.
  2. Provide your taxpayer registration number. It is either a Certificate of Authority number or, for purchasers not registered in New Jersey, the out-of-state registration number, or Federal employer identification number. Individuals must record their driver's license numbers.
  3. Describe the nature of goods or services you sell in an ordinary course of business.
  4. List the goods or services you purchase from the seller.
  5. Indicate the reason for this purchase - resale in its present form, as a component part of another product, or use in the performance of a taxable service on personal property.
  6. If you purchase services, check the applicable box - they are bought by the seller who will collect the tax or resell the services, or they are needed to be performed on personal property in preparation for the sale.
  7. Indicate your legal name or name of the business and provide your address. Write down your type of business and sign the form, adding your title (if the document is signed by the owner, officer of the corporation, partner, etc.) When you sign the form, you confirm the information in the certificate is true and accurate to the best of your knowledge, complying with the rules of the use of the ST-3 Form.

Where to Send My ST-3 Form?

Once the form is completed, you do not send it anywhere - give the ST-3 Form to the seller. The seller will then retain it for a period of not less than four years from the date of the sale. Before accepting the certificate, however, the seller is responsible for its certification. Review the document to make sure it is fully completed and verify the purchaser's business is registered by checking it online via the New Jersey Division of Revenue's Business Registration Certificate Service. Additionally, the seller must evaluate whether the merchandise sold is reasonably consistent with the purchaser's ordinary course of business.


ST-3 Related Forms:

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Download Form ST-3 "Resale Certificate" - New Jersey

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State of New Jersey
ST-3
(03-17)
DIVISION OF TAXATION
SALES TAX
The seller must collect the tax on a
PURCHASER’S NEW JERSEY
sale of taxable property or services
TAXPAYER REGISTRATION NUMBER*
FORM ST-3
unless the purchaser gives him a fully
completed New Jersey exemption
certificate.
RESALE CERTIFICATE
To be completed by purchaser and given to and retained by seller. See instructions on back.
Seller should read and comply with the instructions given on both sides of an exemption certificate.
TO ________________________________________________________________________ Date _______________________________
(Name of Seller)
_______________________________________________________________________________________________________________
Address
City
State
Zip
The undersigned certifies that:
(1) He holds a valid Certificate of Authority (number shown above) to collect State of New Jersey Sales and Use Tax.
(2) He is principally engaged in the sale of (indicate nature of merchandise or service sold):
________________________________________________________________________________________
________________________________________________________________________________________
(3) The merchandise or services being herein purchased are described as follows:
________________________________________________________________________________________
________________________________________________________________________________________
(4) The merchandise described in (3) above is being purchased: (check one or more of the blocks which apply)
(a) ¨ For resale in its present form.
(b) ¨ For resale as converted into or as a component part of a product produced by the undersigned.
(c) ¨ For use in the performance of a taxable service on personal property, where the property which is the
subject of this Certificate becomes part of the property being serviced or is later transferred to the
purchaser of the service in conjunction with the performance of the service.
(5) The services described in (3) above are being purchased: (check the block which applies)
(a) ¨ By a seller who will either collect the tax or will resell the services.
(b) ¨ To be performed on personal property held for sale.
I, the undersigned purchaser, have read and complied with the instructions and rules promulgated pursuant to the New Jersey Sales and Use
Tax Act with respect to the use of the Resale Certificate, and it is my belief that the seller named herein is not required to collect the sales or
use tax on the transaction or transactions covered by this Certificate. The undersigned purchaser hereby swears under the penalties for
perjury and false swearing that all of the information shown in this Certificate is true.
___________________________________________________________________________________
NAME OF PURCHASER*
(as registered with the New Jersey Division of Taxation)
___________________________________________________________________________________
(Address of Purchaser)*
___________________________________________________________________________________
Type of Business*
By
___________________________________________________________________________________
(Signature of owner, partner, officer of corporation, etc.)*
(Title)
MAY BE REPRODUCED
*
Required
(Front & Back Required)
State of New Jersey
ST-3
(03-17)
DIVISION OF TAXATION
SALES TAX
The seller must collect the tax on a
PURCHASER’S NEW JERSEY
sale of taxable property or services
TAXPAYER REGISTRATION NUMBER*
FORM ST-3
unless the purchaser gives him a fully
completed New Jersey exemption
certificate.
RESALE CERTIFICATE
To be completed by purchaser and given to and retained by seller. See instructions on back.
Seller should read and comply with the instructions given on both sides of an exemption certificate.
TO ________________________________________________________________________ Date _______________________________
(Name of Seller)
_______________________________________________________________________________________________________________
Address
City
State
Zip
The undersigned certifies that:
(1) He holds a valid Certificate of Authority (number shown above) to collect State of New Jersey Sales and Use Tax.
(2) He is principally engaged in the sale of (indicate nature of merchandise or service sold):
________________________________________________________________________________________
________________________________________________________________________________________
(3) The merchandise or services being herein purchased are described as follows:
________________________________________________________________________________________
________________________________________________________________________________________
(4) The merchandise described in (3) above is being purchased: (check one or more of the blocks which apply)
(a) ¨ For resale in its present form.
(b) ¨ For resale as converted into or as a component part of a product produced by the undersigned.
(c) ¨ For use in the performance of a taxable service on personal property, where the property which is the
subject of this Certificate becomes part of the property being serviced or is later transferred to the
purchaser of the service in conjunction with the performance of the service.
(5) The services described in (3) above are being purchased: (check the block which applies)
(a) ¨ By a seller who will either collect the tax or will resell the services.
(b) ¨ To be performed on personal property held for sale.
I, the undersigned purchaser, have read and complied with the instructions and rules promulgated pursuant to the New Jersey Sales and Use
Tax Act with respect to the use of the Resale Certificate, and it is my belief that the seller named herein is not required to collect the sales or
use tax on the transaction or transactions covered by this Certificate. The undersigned purchaser hereby swears under the penalties for
perjury and false swearing that all of the information shown in this Certificate is true.
___________________________________________________________________________________
NAME OF PURCHASER*
(as registered with the New Jersey Division of Taxation)
___________________________________________________________________________________
(Address of Purchaser)*
___________________________________________________________________________________
Type of Business*
By
___________________________________________________________________________________
(Signature of owner, partner, officer of corporation, etc.)*
(Title)
MAY BE REPRODUCED
*
Required
(Front & Back Required)
INSTRUCTIONS FOR USE OF RESALE CERTIFICATES – ST-3
1.
Registered sellers who accept fully completed exemption certificates within 90 days subsequent to the date of sale are relieved of
liability for the collection and payment of sales tax on the transactions covered by the exemption certificate. The following
information must be obtained from a purchaser in order for the exemption certificate to be fully completed:
Purchaser’s name and address;
Type of business;
Reasons(s) for exemption;
Purchaser’s New Jersey tax identification number or, for a purchaser that is not registered in New Jersey, the
Federal employer identification number or out-of-State registration number. Individual purchasers must include their driver’s
license number;
If a paper exemption certificate is used (including fax), the signature of the purchaser.
The seller’s name and address are not required and are not considered when determining if an exemption certificate is fully completed.
A seller that enters data elements from paper into an electronic format is not required to retain the paper exemption certificate.
The seller may, therefore, accept this certificate as a basis for exempting sales to the signatory purchaser and is relieved of liability
even if it is determined that the purchaser improperly claimed the exemption. If it is determined that the purchaser improperly claimed
an exemption, the purchaser will be held liable for the nonpayment of the tax.
Retention of Certificates – Certificates must be retained by the seller for a period of not less than four years from the date of the
2.
last sale covered by the certificate. Certificates must be in the physical possession of the seller and available for inspection.
3.
Acceptance of an exemption certificate in an audit situation – On and after October 1, 2011, if the seller either has not obtained
an exemption certificate or the seller has obtained an incomplete exemption certificate, the seller has at least 120 days after the
Division’s request for substantiation of the claimed exemption to either:
1. Obtain a fully completed exemption certificate from the purchaser, taken in good faith, which, in an audit situation, means that
the seller obtain a certificate claiming an exemption that:
(a) was statutorily available on the date of the transaction, and
(b) could be applicable to the item being purchased, and
(c) is reasonable for the purchaser’s type of business; OR
2. Obtain other information establishing that the transaction was not subject to the tax.
If the seller obtains this information, the seller is relieved of any liability for the tax on the transaction unless it is discovered
through the audit process that the seller had knowledge or had reason to know at the time such information was provided that the
information relating to the exemption claimed was materially false or the seller otherwise knowingly participated in activity
intended to purposefully evade the tax that is properly due on the transaction. The burden is on the Division to establish that the
seller had knowledge or had reason to know at the time the information was provided that the information was materially false.
Additional Purchases by Same Purchaser – This certificate will serve to cover additional purchases by the same purchaser of the
4.
same general type of property. However, each subsequent sales slip or purchase invoice based on this Certificate must show the
purchaser’s name, address and New Jersey, Federal, or out of state registration number for purpose of verification.
5.
Retention of Certificates – Certificates must be retained by the seller for a period of not less than four years from the date of the last
sale covered by the certificate. Certificates must be in the physical possession of the seller and available for inspection on or before
the 90th day following the date of the transaction to which the certificate relates.
EXAMPLES OF PROPER USE OF RESALE CERTIFICATE
a. A retail household appliance store owner issues a Resale Certificate when purchasing household appliances from a supplier for resale.
b. A furniture manufacturer issues a Resale Certificate to cover the purchase of lumber to be used in manufacturing furniture for sale.
c. An automobile service station operator issues a Resale Certificate to cover the purchase of auto parts to be used in repairing customer cars.
EXAMPLES OF IMPROPER USE OF RESALE CERTIFICATE
In the examples below, the seller should not accept Resale Certificates, but should insist upon payment of the sales tax.
a. A lumber dealer can not accept a Resale Certificate from a tire dealer who is purchasing lumber for use in altering his premises.
b. A distributor may not issue a Resale Certificate on purchases of cleaning supplies and other materials for his own office maintenance, even
though he is in the business of distributing such supplies.
c. A retailer may not issue a Resale Certificate on purchases of office equipment for his own use, even though he is in the business of selling
office equipment.
d. A supplier can not accept a Resale Certificate from a service station owner who purchases tools and testing equipment for use in his business.
REPRODUCTION OF RESALE CERTIFICATE FORMS: Private reproduction of both sides of Resale Certificates may be made without the
prior permission of the Division of Taxation.
FOR MORE INFORMATION: Read publication S&U-6 (Sales Tax Exemption Administration).
http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su6.pdf
DO NOT MAIL THIS FORM TO THE DIVISION OF TAXATION
This form is to be completed by purchaser and given to and retained by seller.
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