FAQ

Retail sales of tangible personal property in most states are generally subject to sales tax. Construction equipment is generally considered tangible personal property. In some instances, retailers must collect use tax, rather than sales tax. A common example of a purchase subject to the use tax is a purchase of an item for use in California from an out-of-state retailer. The tax rate for sales and use taxes are generally the same.

No, sales tax rates and regulations vary greatly from state to state.

No, there are five states that do not have sales/use tax regulations; these are Alaska, New Hampshire, Montana, Oregon and Delaware.

Unless you are a Licensed Vehicle Dealer in the United States, we are collecting sales tax for the state of Florida. However, if you are exporting your vehicle outside the United States, we will refund the Florida sales tax after you send us the corresponding export documents.

**NOTE – You will be charged taxes (VAT) for items located in Mexico and titled vehicles located in Florida. Once proper documentation is provided IronPlanet will issue a refund.

You may be exempt from sales tax if you meet all the following criteria:

• You are a reseller of like-kind equipment as the equipment you just bought; and
• You have a valid Seller Permit (or its equivalent) from your state; and
• You have completed the Exemption or Resale Certificate for your state and submitted it to IronPlanet; and
• You have submitted a Bill of Lading from a common carrier for shipment of your purchase.

If you purchase tangible personal property but intend to resale it yourself, the transaction is not subject to sales or use tax provided the sale is properly documented. As a result, IronPlanet will ask you to provide a Resale Certificate as proof that the property is being purchased for resale.

Resale Certificates apply to a specific item being purchased. The certificate may be in any form, such as a note, letter, or memorandum (for California-related transactions, we have an online Resale Certificate for your use). A new Resale Certificate is required for each purchase. The certificate must contain the following information:

• The name and address of the purchaser.
• The number of the Reseller's Permit held by the purchaser (see Note below).
• A description (including serial number or VIN) of the specific property being purchased.
• A statement that the described property is being purchased for resale.
  • The certificate must contain words that state the property will be resold or is for resale. The use of words such as "nontaxable" or "exempt" or similar terms is not acceptable.
• Signature of the purchaser or someone approved to act on his or her behalf.
• Date certificate was signed.

While most states require a Resale Certificate, not all states require a Seller's Permit. If you are a purchaser who is not required to hold a Seller's Permit but wish to make a purchase using a Resale Certificate, you must indicate on the Resale Certificate that you do not hold a Seller's Permit and why a permit is not required.

Some states, such as California, require a Seller's Permit; buyers from such states must always supply a Seller's Permit number on their Resale Certificates.

You should not use a Resale Certificate if there is any question whether you will resell the property. There may be times when you are not sure whether the items you are purchasing are for resale or for personal use. In such cases, you should pay sales tax to IronPlanet. If, at a later date, you resell the item before making use of it, you can take a deduction on the tax return on which you report the sale.

For those states that require Resale Certificates, to support an exemption from the application of sales tax on purchases of tangible personal property, you can usually download forms from the website that supports your particular state's Department of Taxation or Bureau of Equalization.

Some states, such as California, require that an out-of-state buyer provide a Bill of Lading showing that the property was transported out-of-state by common carrier prior to its use.

You may be liable for sales tax--even if your purchase is for resale--if you self-transport your purchase across state lines rather than use a common carrier. This is the case for all equipment located in California, as one example. Unless a Bill of Lading is provided to show that a Common Carrier transported your purchase out of the state from which it was purchased, you are required to pay sales tax in that state, regardless of your resale intentions.

Yes. It is considered a misdemeanor in many states to issue a Resale Certificate to evade payment of tax. Typically, each offense is punishable by a fine or imprisonment for up to one year in county jail, or both. If you give a Resale Certificate to purchase property that you know at the time will not be resold in the regular course of business, you can expect:

• Liability for the amount of tax due had the certificate not been used; and
• Liability for Interest payments on the tax due; and
• Penalties imposed by your state for intent to fraud or intent to evade tax; and
• Possible cancellation of your Seller's Permit.