What should a cashier do when presented with a certificate of resale exemption at an auction?

When a cashier is presented with a certificate of resale exemption at an auction, the proper course of action is to exempt the sales tax. A resale exemption certificate is a documentation provided by a buyer to a seller, indicating that the buyer intends to resell the purchased item rather than use it personally. As such, when valid and filled out correctly, this certificate legally allows the transaction to occur without the inclusion of sales tax, as the buyer is not the final consumer of the goods.

Exempting the sales tax in this situation ensures compliance with state tax laws, acknowledging that the seller will not incur tax liability on items that they will not ultimately own. It is crucial that the salesperson verifies that the certificate is legitimate and meets all regulatory requirements, but once confirmed, the correct action is to exempt the sales tax to adhere to the principles of resale exemption. This helps maintain the integrity of the auction process and supports proper financial practices regarding sales tax.