For most jewelers, yes. A resale certificate covers what ends up in the jewelry you sell: findings, chains, metals and gemstones. Tools, equipment and anything used up at the bench are taxed, because you are the last one to use them.
Taxed even with a resale certificate
- Hand tools: pliers, saws, files, burs, hammers, mandrels
- Equipment: torches, kilns, motors, rolling mills, polishers
- Supplies used up in your work: solder, flux, pickle, polishing compounds, casting investment, flasks and casting wax
- Books and software
When tools can be tax exempt
If the exemption comes from who you are rather than from reselling, tools can qualify. That covers public schools and universities, government agencies and 501(c)(3) charities, depending on your state. Choose that reason on the certificate form, or email your exemption letter to [email protected].
Massachusetts schools and agencies need both form ST-2 and form ST-5.
If you resell tools
Say so when you file, and describe the tools you resell. We'll add tools to your certificate if your state allows it.
If you file under Resale, only claim exemption on the items you resell. You're responsible for any tax due on items you use yourself, including if your state audits your purchases.
