Sales and Use Tax Registration

Obtain Tax Ids & Tax Exemption Certificates

Obtaining needed sales and use tax permits is a required step for all businesses and nonprofits. The government penalizes companies that do not comply with the laws to collect and remit tax. This guide summarizes some of our nationwide expertise in helping clients obtain tax ids, get exemption certificates, and maintain sales tax compliance. Depending on your organization's activities, the following licenses may be needed:

  • Sales Tax Registration
  • Sales & Use Tax Ids
  • Sales Tax Vendor ID Number
  • Sales Tax Exemption Certificate
  • Reseller Certificate
  • Reseller Tax Id
  • Reseller Permit
  • Nonprofit Sales & Use Tax Exemption Certificate

Introduction to Sales & Use Tax

Sales tax is tax on the consumption of goods or services, most often levied to the final purchaser at the time of sale. Contrary to popular belief, sales tax is not limited to retail sales. Services, leases, rentals, online sales, and other transactions can be subject to sales tax, as defined by the taxing authority. Sales tax can be levied simultaneously by state, county, and municipal agencies, so the final sales tax charged is the sum of these rates.

Use tax goes hand-in-hand with sales tax. Use tax is a consumption tax imposed on the consumer for out-of-state tangible personal property that is used, consumed, or stored in the state. Use taxes are self-assessed. Typically applications for sales tax ids and use tax ids are consolidated into one form.

Exemptions from sales and use tax are frequently available to resellers, nonprofits, and others. While in some jurisdictions your organization must expressly apply for an exemption, in others your organization need only present the required paperwork to the seller at the time of sale.

Nexus is the technical term for when you have legal obligations to collect and remit sales and use tax in a given state. The burden of collecting sales tax is on the seller not the buyer, which means that businesses and nonprofits are responsible for which geographies and transactions they are required to collect tax. The definition varies by governing authority, but in general it is a good idea to review your sales and use tax nexus when:

  • You set up your business.
  • You open a physical location in a new state.
  • You hire an employee or contractor in a new state.
  • You partner with an affiliate in a new state.
  • You store products, distribute products, or work with a drop-shipper in a new state.
  • You attend a trade show in a new state.
  • Your company changes its busines structure (e.g. LLC to corporation)

Where Sales & Use Tax is Levied

Forty-five states and the District of Columbia impose sales taxes (or similar taxes, which we'll refer to as sales tax for simplicity). Alaska, Delaware, Montana, New Hampshire, and Oregon do not collect sales and use taxes, but all other states mandate some form of sales and use tax registration for qualifying businesses.

Not all sales and use taxes are levied or administered by the state. There are ~11,000 sales tax jurisdictions in the Unites States... most of these are counties, municipalities, and other localities. Some states simplify administration by collecting local sales tax, but in states like Arizona even cities ("non-program cities") administer their own sales tax.

Getting Sales Tax Ids

In each jurisdiction where registration is required, the seller applies for a sales tax id, collects sales tax, and remits the tax to the governing agency. You get a Sales Tax ID Number from the Department of Revenue (or similar agency) by submitting the appropriate application and supporting documentation. Most states require businesses to register with the state (either incorporate or foreign qualify) prior to applying for a sales and use tax account, and many states also ask for the IRS-issued EIN number as a part of tax registration.

Different states may refer to sales and use tax registration as a tax account, license, or permit, so it is important to keep this terminology straight when registering in multiple states. The majority of states do not require a fee with registration, however, there are several states that charge a small fee.

Some state-specific examples of the variation in the registration process include:

  • Colorado, Connecticut, Florida, Hawaii, Indiana, Rhode Island, South Carolina, Wisconsin, and Wyoming have fees for registration.
  • Hawaii collects a General Excise Tax in place of a traditional sales tax.
  • Wisconsin charges $20 for the first tax permit, but there is no fee for additional permits.
  • Colorado‚Äôs registration fees depend on the time of year when you register and range from $4-$16.

Getting Sales Tax Exemption Certificates

Most often, but not always, the buyer is responsible for presenting evidence of tax exempt status at the time of transaction. To do this, nonprofits, wholesalers, and others who qualify from tax exempt certificates create an organized packet listing each tax-exempt identification number and the appropriate certificate to present. Consider using the Uniform Sales & Use TaxExemption/Resale Certificate (Multijurisdiction).

Nonprofits should not assume they are exempt from paying sales and use tax or from collecting sales tax on sales. In most cases, nonprofits can obtain exemptions from transactions relating to their charitable mission. The chart below outlines each state-level process for obtaining exemption. In addition, there are limits to granted exemptions based on whether the nonprofit is the purchaser, seller, the type of nonprofit, and the type of transaction.

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Glossary

(Hover for definition.)

Excise Tax
Nexus
Sales Tax
Transaction Privilege Tax (Arizona)
Use Tax
Value Added Tax (VAT)

Overview By State

Alabama

Register for Sales & Use Tax Accounts:

Agency Alabama Department of Revenue
Form

Form COM:101: Combined Registration Application

Filing Method

Form or online

State Fee

$0


Detailed Alabama Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Alabama Nonprofit Sales Tax Exemption Info

Alaska

Register for Sales & Use Tax Accounts:

Not required

Alaska does not have sales and use taxes at the state level. However, some local jurisdictions impose local sales taxes.


Detailed Alaska Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Alaska Nonprofit Sales Tax Exemption Info

Arizona

Register for Sales & Use Tax Accounts:

Agency Arizona Department of Revenue
Form

Form JT-1: Joint Tax Application

Filing Method

Form or online

Notes

Business entities can register for transaction privilege tax (sales tax), use tax, and withholding/unemployment taxes through the joint tax application form.


Detailed Arizona Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Arizona Nonprofit Sales Tax Exemption Info

Arkansas

Register for Sales & Use Tax Accounts:

Agency Arkansas Department of Finance and Administration
Form

Form AR-1R: Combined Business Tax Registration

Filing Method

Form or online


Detailed Arkansas Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Arkansas Nonprofit Sales Tax Exemption Info

California

Register for Sales & Use Tax Accounts:

Agency California State Board of Equalization
Filing Method

In-person or online.

State Fee

$0

Notes

Sales and use tax registration is know as a seller's permit in California.


Detailed California Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed California Nonprofit Sales Tax Exemption Info

Colorado

Register for Sales & Use Tax Accounts:

Agency Colorado Department of Revenue
Form

Form CR-0100: Colorado Sales Tax Withholding Account Application

Filing Method

Form or online

State Fee

$4-$16 depending on when you register.

Notes

A $50 deposit is required to register for a retail sales tax license.


Detailed Colorado Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Colorado Nonprofit Sales Tax Exemption Info

Connecticut

Register for Sales & Use Tax Accounts:

Agency Connecticut Department of Revenue Services
Form

Form REG-1: Business Taxes Registration Application

Filing Method

Form or online

State Fee

$100 for sales and use tax


Detailed Connecticut Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Connecticut Nonprofit Sales Tax Exemption Info

Delaware

Register for Sales & Use Tax Accounts:

Not required

Delaware does not have sales and use taxes at the state level.


Detailed Delaware Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Delaware Nonprofit Sales Tax Exemption Info

District of Columbia

Register for Sales & Use Tax Accounts:

Agency D.C. Office of Tax and Revenue
Form

FR-500: Combined Business Tax Registration

Filing Method

Form or online

State Fee

$0


Detailed District of Columbia Sales & Use Tax Info

Florida

Register for Sales & Use Tax Accounts:

Agency Florida Department of Revenue
Form

Form DR-1: Florida Business Tax Application

Filing Method

Form or online

State Fee

$5 for sales tax registration


Detailed Florida Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Florida Nonprofit Sales Tax Exemption Info

Georgia

Register for Sales & Use Tax Accounts:

Agency Georgia Department of Revenue
Filing Method

Online


Detailed Georgia Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Georgia Nonprofit Sales Tax Exemption Info

Hawaii

Register for Sales & Use Tax Accounts:

Not required

Hawaii does not have a sales tax, but instead collects a general excise tax from businesses. Form BB-1 should be used to apply for general excise and use taxes.


Detailed Hawaii Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Hawaii Nonprofit Sales Tax Exemption Info

Idaho

Register for Sales & Use Tax Accounts:

Agency Idaho State Tax Commission
Form

Form IBR-1: Idaho Business Registration

Filing Method

Form or online


Detailed Idaho Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Idaho Nonprofit Sales Tax Exemption Info

Illinois

Register for Sales & Use Tax Accounts:

Agency Illinois Department of Revenue
Form

Form REG-1: Illinois Business Registration Application

Filing Method

Form or online

Notes

For sales tax registration, also attach schedule REG-1-L: Business Site Location Information.


Detailed Illinois Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Illinois Nonprofit Sales Tax Exemption Info

Indiana

Register for Sales & Use Tax Accounts:

Agency Indiana Department of Revenue
Filing Method

Form or online.

State Fee

$25 fee for sales tax registration


Detailed Indiana Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Indiana Nonprofit Sales Tax Exemption Info

Iowa

Register for Sales & Use Tax Accounts:

Agency Iowa Department of Revenue
Form

Iowa Business Tax Permit Registration

Filing Method

Form or online

State Fee

$0


Detailed Iowa Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Iowa Nonprofit Sales Tax Exemption Info

Kansas

Register for Sales & Use Tax Accounts:

Agency Kansas Department of Revenue
Form

Form CR-16: Business Tax Application

Filing Method

Form or online


Detailed Kansas Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Kansas Nonprofit Sales Tax Exemption Info

Kentucky

Register for Sales & Use Tax Accounts:

Agency Kentucky Department of Revenue
Form

Form 10A100: Kentucky Tax Registration Application

Filing Method

Form or online


Detailed Kentucky Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Kentucky Nonprofit Sales Tax Exemption Info

Louisiana

Register for Sales & Use Tax Accounts:

Agency Louisiana Department of Revenue
Form

Form CR-1: Application for Louisiana Revenue Account Number

Filing Method

Form or online


Detailed Louisiana Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Louisiana Nonprofit Sales Tax Exemption Info

Maine

Register for Sales & Use Tax Accounts:

Agency Maine Revenue Services
Filing Method

Form or online.


Detailed Maine Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Maine Nonprofit Sales Tax Exemption Info

Maryland

Register for Sales & Use Tax Accounts:

Agency Comptroller of Maryland
Form

Form CRA: Combined Registration Application

Filing Method

Form or online


Detailed Maryland Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Maryland Nonprofit Sales Tax Exemption Info

Massachusetts

Register for Sales & Use Tax Accounts:

Agency Massachusetts Department of Revenue
Filing Method

Online


Detailed Massachusetts Sales & Use Tax Info

Michigan

Register for Sales & Use Tax Accounts:

Agency Michigan Department of Treasury
Form

Form 518: Registration for Michigan Taxes

Filing Method

Form or online


Detailed Michigan Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Michigan Nonprofit Sales Tax Exemption Info

Minnesota

Register for Sales & Use Tax Accounts:

Agency Minnesota Department of Revenue
Form

Form ABR: Application for Business Registration

Filing Method

Form or online


Detailed Minnesota Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Minnesota Nonprofit Sales Tax Exemption Info

Mississippi

Register for Sales & Use Tax Accounts:

Agency Mississippi Department of Revenue
Filing Method

Form or online.


Detailed Mississippi Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Mississippi Nonprofit Sales Tax Exemption Info

Missouri

Register for Sales & Use Tax Accounts:

Agency Missouri Department of Revenue
Form

Form 2643A: Missouri Tax Registration Application

Filing Method

Form or online


Detailed Missouri Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Missouri Nonprofit Sales Tax Exemption Info

Montana

Register for Sales & Use Tax Accounts:

Not required

There is no general sales or use tax at the state level in Montana.


Detailed Montana Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Montana Nonprofit Sales Tax Exemption Info

Nebraska

Register for Sales & Use Tax Accounts:

Agency Nebraska Department of Revenue
Form

Form 20: Nebraska Tax Application

Filing Method

Form or online


Detailed Nebraska Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Nebraska Nonprofit Sales Tax Exemption Info

Nevada

Register for Sales & Use Tax Accounts:

Agency Nevada Department of Taxation
Form

Nevada Business Registration

Filing Method

Form or online

Notes

Use either the online registration system or the Nevada Business Registration form with the supplemental registration to register.


Detailed Nevada Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Nevada Nonprofit Sales Tax Exemption Info

New Hampshire

Register for Sales & Use Tax Accounts:

Not required

New Hampshire does not currently have sales or use taxes.


Detailed New Hampshire Sales & Use Tax Info

New Jersey

Register for Sales & Use Tax Accounts:

Agency New Jersey Department of the Treasury
Form

Form NJ-REG: Business Registration Application

Filing Method

Form or online


Detailed New Jersey Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed New Jersey Nonprofit Sales Tax Exemption Info

New Mexico

Register for Sales & Use Tax Accounts:

Agency New Mexico Taxation and Revenue Department
Form

Form ACD-31015: Application for Business Tax Identification Number

Filing Method

Form or online


Detailed New Mexico Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed New Mexico Nonprofit Sales Tax Exemption Info

New York

Register for Sales & Use Tax Accounts:

Agency New York State Department of Taxation and Finance
Form

Form DTF-17: Application for a Sales Tax Certificate of Authority

Filing Method

Form or online


Detailed New York Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed New York Nonprofit Sales Tax Exemption Info

North Carolina

Register for Sales & Use Tax Accounts:

Agency North Carolina Department of Revenue
Form

Form NC-BR: Business Registration Application

Filing Method

Form or online


Detailed North Carolina Sales & Use Tax Info

North Dakota

Register for Sales & Use Tax Accounts:

Agency North Dakota Office of State Tax Commissioner
Form

Application for Sales and Use Permit or Income Tax Withholding Account

Filing Method

Form or online


Detailed North Dakota Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed North Dakota Nonprofit Sales Tax Exemption Info

Ohio

Register for Sales & Use Tax Accounts:

Agency Ohio Department of Taxation
Filing Method

Form or online.


Detailed Ohio Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Ohio Nonprofit Sales Tax Exemption Info

Oklahoma

Register for Sales & Use Tax Accounts:

Agency Oklahoma Tax Commission
Filing Method

Form or online.


Detailed Oklahoma Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Oklahoma Nonprofit Sales Tax Exemption Info

Oregon

Register for Sales & Use Tax Accounts:

Not required

Oregon does not have a sales or use tax.


Detailed Oregon Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Oregon Nonprofit Sales Tax Exemption Info

Pennsylvania

Register for Sales & Use Tax Accounts:

Agency Pennsylvania Department of Revenue
Form

Form PA-100 Enterprise Registration Form

Filing Method

Form or online


Detailed Pennsylvania Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Pennsylvania Nonprofit Sales Tax Exemption Info

Rhode Island

Register for Sales & Use Tax Accounts:

Agency Rhode Island Department of Revenue - Division of Taxation
Form

Form BAR: Business Application and Registration

Filing Method

Form or online

State Fee

$10 fee for retail sales registration


Detailed Rhode Island Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Rhode Island Nonprofit Sales Tax Exemption Info

South Carolina

Register for Sales & Use Tax Accounts:

Agency South Carolina Department of Revenue
Form

Form SCDOR-111: Tax Registration Application

Filing Method

Form or online

State Fee

$50 fee for retail sales/accomodations license


Detailed South Carolina Sales & Use Tax Info

South Dakota

Register for Sales & Use Tax Accounts:

Agency South Dakota Department of Revenue
Filing Method

Form or online.


Detailed South Dakota Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed South Dakota Nonprofit Sales Tax Exemption Info

Tennessee

Register for Sales & Use Tax Accounts:

Agency Tennessee Department of Revenue
Filing Method

Form or online.


Detailed Tennessee Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Tennessee Nonprofit Sales Tax Exemption Info

Texas

Register for Sales & Use Tax Accounts:

Agency Texas Comptroller
Form

Form AP-201: Texas Application for Sales and Use Tax Permit

Filing Method

Form or online


Detailed Texas Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Texas Nonprofit Sales Tax Exemption Info

Utah

Register for Sales & Use Tax Accounts:

Agency Utah State Tax Commission
Form

Form TC-69: Business Registration

Filing Method

Form or online


Detailed Utah Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Utah Nonprofit Sales Tax Exemption Info

Vermont

Register for Sales & Use Tax Accounts:

Agency Vermont Department of Labor
Form

Form BR-400: Application for Business Tax Account

Filing Method

Form or online


Detailed Vermont Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Vermont Nonprofit Sales Tax Exemption Info

Virginia

Register for Sales & Use Tax Accounts:

Agency Virginia Department of Taxation
Form

Form R-1: Business Registration Form

Filing Method

Form or online


Detailed Virginia Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Virginia Nonprofit Sales Tax Exemption Info

Washington

Register for Sales & Use Tax Accounts:

Agency Washington Department of Revenue
Form

Business License Application

Filing Method

Form or online

State Fee

$0


Detailed Washington Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Washington Nonprofit Sales Tax Exemption Info

West Virginia

Register for Sales & Use Tax Accounts:

Agency West Virginia State Tax Department
Form

Form WV/BUS-APP

Filing Method

Form or online


Detailed West Virginia Sales & Use Tax Info

Wisconsin

Register for Sales & Use Tax Accounts:

Agency Wisconsin Department of Revenue
Form

Form BTR-101: Wisconsin Business Tax Registration

Filing Method

Form or online


Detailed Wisconsin Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Wisconsin Nonprofit Sales Tax Exemption Info

Wyoming

Register for Sales & Use Tax Accounts:

Agency Wyoming Department of Revenue
Form

Sales/Use Tax License Application

State Fee

$60


Detailed Wyoming Sales & Use Tax Info

Apply for Nonprofit Exemptions:

Agency

Detailed Wyoming Nonprofit Sales Tax Exemption Info

Business Compliance Solutions

Streamline your company's compliance with departments of state and licensing agencies. Our national turnkey solutions relieve your staff from burdensome corporate filings and licensing paperwork.

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