How will the advance sales tax repeal affect wholesale dealers?
Wholesale dealer accounts that had been issued “W” number sales tax exemption certificate will be updated and identified as “Resale” dealer. On January 1, 2009, the following changes will be in effect: • Wholesale 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. • The resale certificate, Form R-1042, will replace the old “W” number 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 wholesale 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. • Wholesale dealers will begin accepting the resale certificates from their retail dealer customers. Copies of the certificate
