Nontaxable Purchases

You do not pay sales tax on items you purchase for resale. Give your vendor a completed Form ST3, Certificate of Exemption. Specify the Resale exemption.

Liquor stores must purchase liquor from a licensed liquor distributor.

If you purchase cigarettes or tobacco for resale, you must purchase them from a licensed distributor.

Materials used to enclose or protect products for distribution or are containers that are part of the sale are not taxable. Examples include:

• boxes
• bubble wrap
• grocery bags
• nonreturnable containers
• packing peanuts
• wrapping materials (paper, plastic wrap, wire)

Clothing is not taxable. Examples include:

• caps and hats
• sweatshirts
• t-shirts and jerseys
• uniforms

For additional information, see Clothing.