Can a reseller permit be used to purchase chemicals to treat drinking water?
Purchasers may use a reseller permit to purchase water treatment chemicals or other ingredients only when such chemicals become part of the final product (i.e. purified water).
- Chemicals that are consumed in the process of treating drinking water, and do not remain in the water when it is delivered to the customer (e.g. ozone), are subject to sales tax or use tax.
- Chemicals that remain in the water after treatment (e.g. fluroide, chlorine), and are present in the water delivered to customers, may be purchased without paying sales tax or use tax.
In order to claim the exemption, you can use a reseller permit. If you do not have one, you may apply for a reseller permit online.
If you have previously paid sales or use tax on qualifying water treatment chemicals, you may apply for a refund online.
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