Reseller permits for contractors

Use a reseller permit issued by the Department of Revenue to make purchases for resale.

Construction businesses must apply to the Department for a reseller permit

How to apply

1. On dor.wa.gov click the Log in button.
2. Enter your SAW User ID and Password and click Log In.
3. On the My DOR Services page, click Get Started.
4. In the Excise Tax Account panel, click the Apply for/view a Reseller Permit link.
5. Click the Apply for Reseller Permit button.
6. Answer the questions and complete the required fields, then click Submit.
7. On the Confirmation page, click Ok.

In general, to qualify for a permit you must be performing retail or wholesale construction activities. Detailed information about material and contract labor purchases is required with your application. This includes your retail/wholesale construction costs for the past 24 months (new businesses must estimate costs for the next 24 months).

Contractors’ reseller permits are valid for two years

If your application is approved, you will receive a permit valid for two years. If your permit is not automatically renewed by the Department, you may reapply.

Reseller permits are free

There is no charge to apply. We will notify you whether an application is approved or denied within 60 days.

A reseller permit can be used to purchase:

• Merchandise and inventory for resale that will be sold without being used first.
• Ingredients and components used in producing new articles of tangible personal property for sale.
• Materials and contract labor for retail/wholesale construction.

You may not use the permit for these types of transactions:

• Purchase or rental of equipment or tools.
• Purchase of supplies that do not become an ingredient or component part of the project (e.g. sandpaper, masking tape, saw blades, etc).
• Purchase of materials and contract labor incorporated into public (city/county or federal) road construction or construction projects for the U.S. government.
• Purchase of materials and contract labor for speculative building projects.

What if I've already paid sales tax on my qualified purchases?

If you don’t have a reseller permit, you may also use another approved exemption certificate, or take a Taxable Amount for Tax Paid at Source deduction on a tax return, or request a refund for sales tax paid on qualifying purchases.

If you sell at wholesale

Keep a copy of a current reseller permit on file for your customers. You need to charge sales tax unless your customer provides a copy of their reseller permit or other approved exemption certificate.

For example, subcontractors that perform work for prime contractors need to get a copy of the new reseller permit from the prime contractor or collect sales tax on subcontractor services.

If you sell to farmers at wholesale, you may accept either a reseller permit or the Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions (pdf).

For audit purposes, resale certificates, reseller permits, and farmers’ tax exemption certificates must be kept on file for five years from the date last used.

More information

For detailed information about how taxes apply to construction activities, refer to the Construction Industry Guide.