Sales For Resale

(1) Sales for resale include those whereby a supplier of materials, supplies, equipment and services makes such tangible personal property or services available for further processing as a component part of a product to legitimate dealers engaged in and actually reselling or leasing such property or services to a user or consumer. Sales to a manufacturer or processor for future processing, manufacture or conversion into articles of tangible personal property for resale where such industrial materials become a component part of the finished product are likewise considered sales for resale. (2) Sales of tangible personal property and services to a retailer who may make further distributions from a central warehouse or other distribution point to others for resale shall be deemed to be wholesale sales. (3) Sales for resale made by a wholesaler to another wholesaler shall not be subject to business tax. BUSINESS TAX RULES AND REGULATIONS CHAPTER 1320-04-05 (4) The price charged by the vendor for tangible personal property or services or the quality of such property or services is immaterial in determining whether or not a sale is one for resale. The controlling factor is what the vendee does with his purchase. (5) Sales to a contractor who in the course of performing his contract installs property or uses services in a structure, as a component part thereof, are retail sales to a user or consumer.