Do you need a sellers permit/Resale certificate to sell used clothing

[freshgear4less]

I am NOT selling clothing as new. I never will buy from retail stores like JCP Penny and sell their products.

Now, I do sell clothing from Goodwill. I only sell goods from this vendor. My fist question is:

Is Goodwill considered a wholeseller?

Please, if you know, also state weather or not you need a sellers certificate and resale certificate to sell used clothing on eBay.

[sam9876]

"Is Goodwill considered a wholeseller?"

 No, Goodwill is not a wholesaler.

[myboardid]

States do not require business permits (this permit has many different names in different states) so that retailers/sellers can buy without paying sales tax.  They do it so that said seller will collect sales tax from their customers and remit it to the state.  eBay doesn't require it, the seller's state of residence does.  Each state has its own requirements, some don't have sales taxes.  As to the constitution, it does apply here, as written.  The laws are generated by the states. 

As a retailer who was following my state's laws properly, I was once subjected to an error by my state's taxing authority and I can tell you they can be very, very nasty when they think you are not sending their money. 

[csbbct]

You should probably check with your state for their requirements which could be different from mine.  In Connecticut, I have a State Sales Tax Permit which requires me to collect sales tax from CT residents who purchase from me, including online purchases.  That permit also allows me to buy merchandise for resale purposes without paying sales tax, not only from my state but from other states too.  You must keep good records for this in case of audit.  I have used that permit to purchase for resale at thrift stores, but not sure if all would accept it.  My state also reports the fact that I am running a business to the town listed on the permit, so I also have to pay property taxes to the town on business equipment and furniture, but not inventory.  And, as others are saying, your profit is Business Income on your federal tax return, but there are many deductions allowed including business mileage on your car, shipping supplies, ebay and Paypal fees, Home Office expenses, etc.

Hope this helps! 

[the_fancy_fox]

Depends on your state. 

In many states if your buying for resale you need to collect sales tax when you sell it within The state, even if used. The Goodwill is exempt from collecting sales tax because they are non profit.

Plus if your buying for resale, your state may be interested in you paying taxes and for sure the IRS will be. Buying and selling for profit is technically a business not a hobby.

Your best bet is to call your states taxing authority. In California where I am it’s the state board of equalization.