A resale license allows an individual or organization to buy wholesale commodities and sell the products at wholesale or retail prices. The Minnesota resale license is required for the trade of tangible products that are taxable.
The sales tax exempt number, resale exemption number, resale license or business license are all the names of Minnesota Tax ID. If you have the Minnesota Tax ID, you don't need to apply for any other numbers from the Minnesota Department of Revenue.
A resale license ensures that tax is collected on all products that are taxable. This tax is collected by the registered business and paid to the appropriate authorities.
The article of law that requires registration and provides penalties is the Statute 144.118. 1. It states that any business or individual engaged in the business of selling of tangible personal property without a retail sales tax license (resale license) shall be assessed a penalty.
Obtaining the License
The Minnesota resale license can be obtained online or by visiting the premises. The location of the office is 600 North Robert St., St. Paul, Minnesota. The online registration can be processed at the Minnesota Dept. of Revenue web site.
Benefits of Registration
By applying for the Resale License, you are exempted from tax on all qualifying purchases. Wholesale registration also makes you eligible for discount on wholesale products. It is also a compliance with with the Minnesota State Law.