Purchases by the recreational service provider

Assets, consumables, and supplies

Recreational service providers must pay retail sales or use tax on their purchases of goods and retail services used in providing their services.

Examples include:

• Exercise equipment.
• Point of sale systems.
• Office furniture and equipment.
• Cleaning supplies.

If the seller does not collect sales tax, you should report use tax.

Purchases for resale

Recreational service providers may use a reseller permit to purchase merchandise that will be sold to their customers without intervening use by the service provider.