Resale Certificate for Mattress Stores: Buy Bedding Inventory Wholesale Tax-Free
Mattresses are high-ticket items with strong wholesale margins. A queen mattress that costs $300 to $600 wholesale sells at $800 to $2,000 retail. A mattress store carrying 40 to 80 floor models and maintaining warehouse stock typically purchases $20,000 to $60,000 in wholesale inventory per month. At 7% tax, that is $16,800 to $50,400 per year in tax savings.
The mattress retail model is straightforward for resale certificate purposes: everything on your showroom floor and in your warehouse is inventory purchased for resale.
How Mattress Stores Buy Wholesale
Direct from manufacturers. Serta Simmons Bedding (Serta, Beautyrest), Tempur Sealy (Tempur-Pedic, Sealy, Stearns & Foster), Sleep Number, Purple, and regional manufacturers sell direct to authorized dealers. Your dealer agreement requires a resale certificate, business license, and proof of a retail location.
Bedding distributors. Nationwide Marketing Group, Furniture First, and Mega Group buying cooperatives provide volume pricing. Independent distributors like Therapedic and Restonic operate through regional licensees.
Bedding accessories suppliers. Protect-A-Bed, Malouf, PureCare, and similar companies supply pillows, sheets, mattress protectors, and adjustable bases through separate wholesale accounts. Each needs your resale certificate on file.
Closeout and liquidation. Overstock mattresses from other retailers, factory seconds, and discontinued models from manufacturers. These channels still require resale documentation.
What You Can Buy Tax-Free
- Mattresses (innerspring, memory foam, hybrid, latex, all sizes)
- Box springs and foundations
- Adjustable bases (power bases, zero-gravity frames)
- Bed frames and headboards (sold at retail)
- Pillows (memory foam, down, fiber fill, specialty)
- Mattress protectors and encasements
- Sheet sets and pillowcases
- Comforters, duvets, and blankets
- Mattress toppers
- Bed rails and bunkie boards
- Sleep accessories (wedge pillows, body pillows, weighted blankets)
- Delivery packaging (mattress bags, corner guards that go with the product to the customer)
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Showroom display beds (not for sale) | Store fixtures |
| Point-of-sale system | Business equipment |
| Delivery truck | Business asset |
| Warehouse racking | Business equipment |
| Store signage and decor | Business property |
| Cleaning supplies for the showroom | Business supply |
| Customer comfort items (water, mints at checkout) | Given away, not sold |
Floor models that become sales units. Here is the nuance: if every floor model is also available for sale (and most mattress stores will sell the floor model at a discount), then floor models are inventory. They are purchased for resale and covered by the certificate. If you designate certain models as permanent display units that will never be sold, those are store fixtures.
Most mattress stores sell every floor model eventually (often as the "last one" at a discount), so nearly all inventory qualifies.
Delivery and Setup Charges
Mattress delivery is almost universal in this industry. Tax treatment of delivery charges varies by state:
States that tax delivery charges. If the delivery is part of the sale of the mattress, many states include the delivery fee in the taxable amount. The customer pays tax on the mattress price plus delivery.
States that exempt separately stated delivery. Some states exempt delivery charges if they are separately stated on the invoice and optional (the customer could pick up the mattress instead).
Old mattress removal. Many mattress stores offer to haul away the customer's old mattress. This removal service is generally separate from the sale and may or may not be taxable depending on your state.
Your resale certificate covers your wholesale mattress purchase regardless of delivery tax rules. Delivery taxation is a customer-facing issue.
Mattress Recycling Laws
Several states (California, Connecticut, Rhode Island) have mattress recycling fees (typically $10 to $16 per unit). These are environmental fees, not sales tax. They are collected from the consumer at the point of sale and remitted to the state's mattress recycling program. Your resale certificate does not affect these fees.
Dollar Savings
| Store Type | Monthly Wholesale Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Small showroom (20 models) | $15,000 | $12,600 |
| Standard mattress store | $35,000 | $29,400 |
| High-volume retailer with accessories | $60,000 | $50,400 |
| Multi-location chain | $150,000+ | $126,000+ |
Common Mistakes
Not buying accessories through your wholesale account. Pillows, protectors, and sheets bought at regular retail (running to a store for emergency stock) are taxed at the register. Set up wholesale accounts with accessory suppliers and present your certificate.
Forgetting about adjustable base manufacturers. Adjustable bases are a growing category. Leggett & Platt, Ergomotion, Reverie, and similar manufacturers require your certificate for wholesale pricing.
Not collecting tax on accessory sales. Pillows, sheets, and protectors sold alongside mattresses are taxable retail sales. Some stores bundle accessories with mattress purchases ("free pillow with purchase"). The "free" pillow still has a taxable value in some states if the overall transaction price includes it.
Inconsistent delivery tax treatment. Charging tax on delivery inconsistently (sometimes yes, sometimes no) creates audit issues. Set a consistent policy based on your state's rules.
How to Get Started
- Apply for your resale certificate through your state or our service.
- Provide it to all manufacturers. Serta Simmons, Tempur Sealy, and every brand you carry.
- Set up accounts with accessory suppliers. Malouf, Protect-A-Bed, and PureCare need the certificate for wholesale access.
- Configure your POS for your state's delivery tax rules. Get this right from day one.