4.25.050 Exemptions from sales tax – Wholesale/resale sales.
(a) The sale of goods by a manufacturer, wholesaler or distributor to a retail vendor shall be exempt from sales tax until such time the goods are sold to the end user or consumer, at which point the goods are subject to tax as a retail sale unless otherwise exempted elsewhere in this chapter.
(1) The sale of goods purchased by a manufacturer which become a component part of a manufactured item are exempt from sales tax. The sale of the manufactured item itself is subject to tax as a retail sale unless otherwise exempted elsewhere in this chapter.
(2) A purchaser of real property is not subject to sales tax on the materials, goods, components, fixtures or other items that are incorporated into the construction of real property and become a permanent component of that real property are exempt from sales tax to the purchaser or real property. However, the purchaser of real property is subject to sales tax on the rendering of all services in connection therewith to accomplish the installation, construction, repair or completion of a specific end product or project.
(b) The resale of any good sold by an individual is exempt from sales tax. However, a person in the business of resale is not exempt if the resale price is more than the original price paid.
(c) A business within the City that sells goods to a business located outside the City for resale by that business outside the City shall report the sale as a tax-exempt sale for resale, regardless whether the buyer has obtained a resale certificate from the City. [Ord. 19-06 § 2, 2019.]