Jewelry Maker Resale Certificate Guide: Buy Gems, Metals, and Findings Tax-Free
Whether you are a bench jeweler crafting custom rings, a beading artist selling at craft shows, or a gemstone dealer supplying other makers, your material costs are significant. Gold, silver, platinum, gemstones, and findings are expensive. Paying sales tax on top of those costs cuts into margins that are already tight.
A resale certificate lets you purchase materials tax-free when those materials become part of a product you sell. A jewelry maker spending $5,000 per month on metals and stones saves $4,200 per year at a 7% tax rate. A gemstone dealer buying $20,000 monthly in rough and cut stones saves $16,800.
Jewelry Making
How the Resale Exemption Works for Jewelry Businesses
The principle is straightforward. You buy materials (gold wire, sterling silver sheet, sapphires, clasps, chains) and transform them into a finished product (a necklace, a ring, a pair of earrings) that you sell to a customer. The materials that become part of the finished product are resale purchases.
This applies to:
- Jewelry makers and artisans who fabricate from raw materials
- Jewelry resellers who buy finished pieces wholesale and resell them
- Gemstone dealers who buy rough or cut stones for resale
- Bench jewelers who create custom pieces on commission
- Beaders and wire artists selling at craft shows and online
The exemption covers every component that physically becomes part of the product the customer receives.
Apply for Your Resale Certificate
What You Can Buy Tax-Free
Precious Metals
- Gold (sheet, wire, tubing, casting grain, solder)
- Sterling silver (sheet, wire, bezel strip, casting grain)
- Platinum (wire, sheet, casting grain)
- Gold-filled and gold-plated materials
- Copper, brass, and bronze for fashion jewelry
- Titanium and stainless steel for contemporary designs
Gemstones
- Diamonds (loose, for setting into pieces for sale)
- Colored gemstones (rubies, sapphires, emeralds, opals, amethyst, citrine)
- Pearls (freshwater, Akoya, South Sea, Tahitian)
- Semi-precious stones (turquoise, garnet, moonstone, labradorite)
- Rough stones purchased for cutting and resale
- Lab-created and synthetic stones for resale
- Cubic zirconia and simulants for fashion jewelry
Findings and Components
- Clasps (lobster, toggle, magnetic, box clasps)
- Ear wires and posts (hooks, studs, leverbacks)
- Jump rings and split rings
- Chain (bulk chain for finishing pieces)
- Bezel settings and prong settings
- Pin backs, bail caps, and crimp beads
- Stringing materials (silk cord, wire, beading thread) that become part of the piece
Packaging That Transfers to the Customer
- Ring boxes and jewelry boxes
- Pouches and bags
- Gift wrapping and tissue paper
- Jewelry cards and tags included with the product
- Branded packaging for your products
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Bench tools (pliers, files, hammers, saw frames) | Your tools |
| Soldering equipment (torch, flux, pickle pot) | Business equipment |
| Polishing and finishing tools (tumblers, buffs, compounds) | Business equipment |
| Casting equipment (kilns, flasks, investment powder) | Business equipment |
| Magnification (loupes, microscopes) | Business tools |
| Display stands and busts | Business fixtures |
| Workbench and studio furniture | Business equipment |
| Cleaning supplies (ultrasonic solution, steam cleaner) | Business operations |
| Software (CAD programs for jewelry design) | Business tools |
| Photography equipment for product shots | Business equipment |
Consumable Supplies: A Gray Area
Some materials are used up during production but do not become part of the final piece. Flux, pickle acid, polishing compound, and investment powder are consumed during manufacturing. In most states, these are treated as taxable business supplies because they do not become part of the product the customer receives.
However, solder is an exception in many states. Silver solder or gold solder physically bonds to the piece and becomes part of the finished product. It should qualify as a resale purchase. The same logic applies to patina solutions (like liver of sulfur) that chemically alter the final product, though state interpretations vary.
Selling at Craft Shows and Markets
Craft shows, art fairs, and makers markets are primary sales channels for jewelry makers. Each one comes with tax obligations.
Temporary Seller's Permits
Some states require a temporary seller's permit for each event, separate from your standard sales tax registration. Others allow you to use your regular registration for events within your home state. Check with both your state tax authority and the event organizer.
Collecting Sales Tax at Events
You must collect sales tax at the rate for the location of the event, not your home base. If you live in a county with a 6% combined rate but set up at a craft show in a county with 8.5%, you collect 8.5%.
| Scenario | What You Do |
|---|---|
| Event in your home state | Collect at the event location's rate |
| Event in another state (where you have nexus) | Collect at that state's rate; you must be registered there |
| Event in another state (no nexus) | Check thresholds; you may trigger nexus from the event itself |
| Event in a state with no sales tax (Oregon, Montana, etc.) | No sales tax to collect |
Multi-State Craft Show Sellers
If you do shows in multiple states, you may need to register and collect sales tax in each one. Many states have economic nexus thresholds (typically $100,000 in sales), but some also have physical presence nexus rules triggered by attending events. A single weekend show could create nexus in some states. Read our multi-state resale certificates guide for details.
Online Sales: Etsy, Shopify, and Your Own Website
Many jewelry makers sell online through Etsy, Shopify, Amazon Handmade, or their own websites.
Marketplace Facilitator Laws
Etsy and Amazon collect and remit sales tax on your behalf in states with marketplace facilitator laws. This covers the vast majority of states. You do not need to worry about sales tax collection for orders placed through these platforms (though you should verify this for each state).
Your Own Website (Shopify, Squarespace, etc.)
If you sell through your own site, you are responsible for collecting and remitting sales tax. You must determine where you have nexus, register in those states, configure your shopping cart to charge the correct rates, and file returns. Most e-commerce platforms have built-in sales tax tools or integrations (like TaxJar or Avalara).
Wholesale Orders
When another jeweler or a retail store buys from you at wholesale, they provide their resale certificate. You do not charge them sales tax. Keep their certificate on file. This is a standard business-to-business resale transaction.
State-Specific Notes for Jewelry Businesses
Texas
Texas taxes jewelry at up to 8.25%. All materials purchased for resale (metals, stones, findings) are exempt with a resale certificate. Custom jewelry made to order is taxable. There is no exemption for precious metals as investment items unless they meet specific bullion criteria. See the Texas guide.
California
California requires a seller's permit. All jewelry sales are taxable. Materials for producing jewelry for sale are exempt when purchased with a resale certificate. If you sell at California craft shows, you must have a valid seller's permit. Check the California guide for local rate details.
New York
New York taxes jewelry at the state and local rate. There is no special exemption for jewelry. Custom and handmade pieces are taxed the same as mass-produced items. The New York guide covers registration requirements.
Florida
Florida taxes jewelry sales at 6% plus local surtaxes. No special exemptions for precious metals or gemstones used in jewelry.
Montana, Oregon, New Hampshire, Delaware
These states have no general sales tax. If you are based in one of them, you do not collect sales tax on local sales. But you still need a resale certificate to buy materials tax-free from vendors in other states.
Custom and Commission Work
When a customer commissions a custom piece, you are creating a tangible product for sale. The materials that go into that piece qualify for the resale exemption. You charge the customer sales tax on the finished piece (or the combined materials and labor charge, depending on your state).
Example custom ring order:
| Component | Your Cost |
|---|---|
| 14k gold band (purchased tax-free) | $400 |
| Diamond center stone (purchased tax-free) | $2,000 |
| Side stones (purchased tax-free) | $300 |
| Setting and labor | Your time |
| Total sale price to customer | $5,500 |
| Sales tax collected (7%) | $385 |
Your resale certificate saved you $189 in tax on the $2,700 in materials. Multiply that across dozens of commissions per year, and the savings are substantial.
Gemstone Dealers: Buying and Selling Loose Stones
If you buy rough or cut gemstones for resale to other jewelers, collectors, or retail customers, your entire inventory is a resale purchase. Your certificate covers:
- Rough gemstones purchased from miners or brokers
- Cut and polished gemstones from lapidaries or wholesalers
- Parcels and lots of stones purchased at trade shows (Tucson Gem Show, JCK)
- Diamonds from sight holders or secondary market dealers
When you sell to another business that provides a resale certificate, you do not collect sales tax. When you sell to an end consumer, you do.
Real Savings for Jewelry Businesses
| Business Type | Monthly Materials Spend | Annual Tax Savings (7%) |
|---|---|---|
| Hobby-to-business beader | $500 | $420 |
| Artisan jeweler (craft shows + online) | $2,000 | $1,680 |
| Custom bench jeweler | $5,000 | $4,200 |
| Small jewelry brand | $10,000 | $8,400 |
| Gemstone dealer | $20,000 | $16,800 |
For a custom bench jeweler working with precious metals and gemstones, $4,200 in annual tax savings on materials is money that can go toward better stones, new equipment, or show fees.
Common Mistakes Jewelry Makers Make
Not Getting a Certificate Because You Are "Just a Hobby"
If you sell jewelry with any regularity (craft shows, Etsy, Instagram sales), you are operating a business in the eyes of your state. Get your certificate and buy your materials tax-free. There is no minimum sales threshold for obtaining a resale certificate in most states.
Using the Certificate for Tools and Equipment
Your pliers, your torch, your tumbler: these are not resale items. They stay in your studio. Do not use the certificate for equipment purchases.
Not Collecting Tax at Craft Shows
Setting up a booth and selling jewelry without collecting sales tax is a compliance failure. States actively audit craft shows and art fairs. Some send auditors to walk the booths.
Ignoring Online Sales Tax Obligations
Selling on Etsy does not mean Etsy handles everything. While Etsy collects sales tax as a marketplace facilitator, you may still have filing obligations. And if you sell through your own website, you are fully responsible. Review our Etsy sellers guide for specifics.
How to Get Started
- Apply for your resale certificate. Visit your state's tax authority or use our application service.
- Provide the certificate to all material suppliers. Metal suppliers (Rio Grande, Stuller, Halstead), stone dealers, finding suppliers. Every vendor should have your certificate on file.
- Register to collect sales tax. If you sell to consumers (online, at shows, in a studio), register with your state.
- Set up sales tax collection for online sales. Configure your Shopify, Etsy, or website to charge the correct rates.
- Keep detailed records. Track material purchases, sales by channel, and sales tax collected. This makes tax filing straightforward and protects you in an audit.
Apply for Your Resale Certificate Today