A document exempting a lessor from paying sales tax on the equipment being leased. A lessor may be buying the equipment for "re-sale" as would a vendor/supplier, while a lessee may be tax exempt for other reasons, i.e., non-profit entity or a bank.
a certificate issued by the Secretary that authorizes a retailer to sell tangible personal property to the holder of the certificate and either collect tax at a preferential rate or not collect tax on the sale
A document exempting a lessor or lessee from paying sales tax on the equipment being leased. A lessor is buying the equipment for re-sale as would a vendor or supplier while a lessee may be tax exempt for other reasons like being a non-profit organization or a bank.
An exemption certificate is used when a company purchases equipment for exempt use as defined by each taxing jurisdiction. In order to be relieved from collecting sales tax on a lease, we must obtain a valid exemption certificate from the customer.