How will the advance sales tax repeal affect retail dealers?
Effective January 1, 2009, all retail dealers will be allowed to purchase tangible personal property for resale without paying the state sales tax. • Retail dealers will begin using the Louisiana Resale Certificate, Form R-1042, and should provide the certificate to their vendors to purchase items for resale without being charged the state sales tax. • If the retail dealer previously qualified for a “W” number exemption certificate, the resale certificate, Form R-1042, will replace the old exemption certificate, which will no longer be issued or renewed. • The resale certificate may only be used to purchase items for resale. Purchases for use or consumption are still taxable and the retail dealer must pay the sales tax at the time of purchase or report the purchase for use on Line 2 of the sales tax return, Form R-1029 and pay the use tax with the sales tax return payment. • The sales tax accounts of retail dealers that previously qualified for a “W” number or were identified by LDR as
