Before reading more, please remember to consult with a CPA when making any tax or financial decision. The information below is from the experience of two entrepreneurs working in the landscape industry for more than a decade!
If you’re a landscaper purchasing materials like mulch or topsoil for your jobs, having a Sales and Use Tax Number is a smart business move that can save you money and streamline your buying process. This is especially important for contractors, landscapers, property managers, and resellers who regularly purchase bulk materials like mulch, stone, topsoil, and salt.
What Is a Sales and Use Tax Certificate?
A Sales and Use Tax Certificate (often called a resale or exemption certificate) allows qualified businesses to purchase materials without paying sales tax at the time of purchase, as long as those materials are being resold or used in taxable jobs for customers.
Instead of paying sales tax upfront, the tax is ultimately collected from your customer when you bill them—keeping your costs lower and your pricing more competitive.
Many Elmwood Bark and Stone customers purchase materials specifically for resale or installation as part of a larger service. Filing a tax certificate ensures you’re not overpaying on:
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Mulch and decorative stone for landscape installs
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Aggregate base material for your hardscape installs
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Ice melt and salt for commercial snow contracts
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Bulk materials used in taxable construction or maintenance jobs
Without a certificate on file, sales tax must be charged—even if you’re legally exempt.
Key benefits for your company would include the following:
1. Immediate Savings:
Avoid paying sales tax on eligible purchases, improving cash flow and protecting your margins. Registering helps you create better financial habits from day one. You’ll track sales more accurately, understand your revenue and costs better, and be prepared if your business grows, expands online, or sells across state lines.
2. Accurate Billing:
Collect and remit sales tax correctly from your end customer, rather than absorbing unnecessary costs.
3. Professional Credibility
Having your tax documentation in place shows that your business is legitimate and organized.
4. Reduced Risk During Audits
If your business is ever audited, having a valid certificate on file helps prove that tax was handled properly. One of the biggest reasons to register is compliance. Unless you’re doing all cash transactions, DRS will find out that you have been collecting revenue without charging taxes, and they will start taking off your personal tax return at the end of the year. Additionally, they will not know exactly how much your real revenue is so they will assume the number, and charge interest and penalties on that.
Who Should File?
You should strongly consider filing a Sales and Use Tax Certificate if you:
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Resell landscape or construction materials
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Install materials as part of taxable services
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Purchase bulk materials for commercial projects
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Operate as a contractor, landscaper, or property manager
Even small or new businesses can qualify.
A common misconception that many small businesses skip filing for the Sales and Use Tax Certificate is because they think it only applies to large companies. In reality, small and mid‑size contractors often benefit the most, especially when purchasing materials regularly.
Filing a Sales and Use Tax Certificate is a simple step that can lead to long‑term savings, better compliance, and a smoother purchasing experience. If you’re buying materials for resale or taxable jobs, this one form can make a big difference for your business.
Filing Instructions:
- Log In: You will need to log in using your username and password. If you do not have an account, you will need to register for a Connecticut Tax Registration Number first.
- File Your Return: Follow the on-screen prompts to complete and submit Form OS-114, the Connecticut Sales and Use Tax Return. You must file a return even if you made no sales and no tax is due.
- Make Payment: After completing the return, you will be automatically directed to the payment page. You can make a free direct payment from your checking or savings account or pay by credit/debit card (a convenience fee applies).
- Receive Confirmation: Upon successful submission, you will receive a confirmation number and have the option to print a copy of the return for your records.