What is a resale certificate?

In California, the State Board of Equalization, known as the BOE or the SBE, imposes sales tax on the sale at retail of tangible personal property. The best method for a seller to prove that his purchaser intended to resell the property (and therefore that the seller was not required to charge sales tax) is to obtain a “resale certificate” from the purchaser. The resale certificate certifies that the purchaser has a California sales tax permit, and that it intends to resell the property. If you would like to see the form of the resale certificate prescribed by the BOE here is a link to the forms page of their website