Consignment Sales (Publication 114)
Resale Certificates

Can I furnish resale certificates to registered sellers who consign items to me for sale?

When a consignor also holds a seller's permit and has purchased items for resale without the payment of tax, a resale certificate given by the consignee will ensure that the consignor will not be held liable for tax in consigning the property. Since consignees are not purchasing the property, they may modify the language used in the resale certificate changing the word "purchase" to "take on consignment" and issue this modified certificate to consignors.