Resale Certificate for Pet Stores: Buy Pet Food, Supplies, and Animals Tax-Free
The pet industry in the United States exceeds $140 billion in annual spending. Independent pet stores compete with PetSmart and Petco by specializing in premium food, knowledgeable staff, grooming services, and local community relationships. A typical independent pet store purchases $15,000 to $50,000 in wholesale merchandise per month. At 7% tax, that is $12,600 to $42,000 per year in savings with a resale certificate.
Pet food is the largest product category, often representing 50-60% of store revenue. The rest comes from treats, toys, supplies, live animals, and services (grooming, self-wash stations, training classes).
What You Can Buy Tax-Free
- Dog and cat food (dry, wet, raw, freeze-dried, prescription diet)
- Treats and chews (biscuits, dental chews, rawhide, bully sticks, jerky)
- Toys (plush, rubber, rope, interactive, puzzle toys)
- Beds and furniture (dog beds, cat trees, crates, carriers)
- Collars, leashes, and harnesses
- Bowls and feeders (ceramic, stainless, automatic, elevated)
- Grooming products sold at retail (shampoo, conditioner, brushes, nail clippers)
- Aquarium supplies (tanks, filters, heaters, gravel, decorations, water treatments)
- Reptile supplies (terrariums, heat lamps, substrate, supplements)
- Bird supplies (cages, perches, seed, toys)
- Small animal supplies (hamster cages, bedding, hay, water bottles)
- Live animals (fish, reptiles, small animals, birds; dogs and cats in some states)
- Clothing and accessories for pets (sweaters, boots, bandanas, bow ties)
- Health supplements (joint supplements, probiotics, calming aids)
- Waste bags, litter, and litter boxes
- Training aids (clickers, treat pouches, training pads)
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Grooming tables and tubs | Business equipment |
| Grooming dryers and clippers (shop use) | Business equipment |
| Store aquarium displays (not for sale) | Store fixtures |
| Animal care supplies (disinfectant for cages, vet supplies) | Business supply |
| POS system | Business equipment |
| Store shelving and fixtures | Business equipment |
| Cleaning supplies for the store | Business use |
| Dog wash station equipment | Business equipment |
Grooming supplies distinction. Shampoo, conditioner, and sprays sold at retail on your shelves are resale items. The same products used by your groomers during grooming appointments are consumed in providing a service. If you buy a case of shampoo and split it between the grooming station and the retail shelf, track the allocation. Your resale certificate covers only the retail portion.
Live Animal Sales
Selling live animals (fish, reptiles, hamsters, guinea pigs, birds, rabbits) has specific tax considerations:
Taxability of live animals. Most states tax the sale of pet animals at the standard rate. A few states exempt certain live animals from sales tax (often under agricultural exemptions that were written for livestock but technically cover any live animal). Check your state's specific rules.
Your wholesale purchase of live animals. Whether you buy from breeders, wholesale animal distributors, or fish farms, your resale certificate covers the purchase of animals you intend to sell at retail. The certificate works the same as it does for any other inventory.
Livestock and feed exemptions. Some states exempt animal feed from sales tax under agricultural exemptions. These were written for farm animals, but pet food may or may not qualify depending on how your state defines "livestock" and "feed." Most states do NOT extend the feed exemption to pet food, but it is worth checking.
Pet Food Distribution
Pet food is distributed through several channels:
Direct from manufacturers. Premium and super-premium brands often sell direct to independent retailers:
- Champion Petfoods (Orijen, Acana)
- Fromm Family Foods (independent retailer exclusive)
- Stella & Chewy's (raw and freeze-dried)
- The Honest Kitchen (dehydrated and whole food)
- Open Farm (sustainably sourced)
- Zignature (limited ingredient)
Pet food distributors. Most independent stores buy through distributors who carry dozens of brands:
- Phillips Pet Food & Supplies (one of the largest independent pet distributors)
- Central Pet Distribution (natural and premium brands)
- Pet Food Experts (covers eastern US)
- Animal Supply Company (merged with Phillips in 2020, now one entity)
- NutriSource / KLN Family Brands (manufacturer/distributor)
Treat and supplement suppliers. Companies like Best Bully Sticks, Bocce's Bakery, and Natural Dog Company sell wholesale direct or through distributors.
Your resale certificate goes on file with every manufacturer and distributor you purchase from.
Grooming Revenue and Tax
If your pet store offers grooming services:
Grooming is a service. Most states tax pet grooming services. The customer pays for bathing, haircut, nail trim, and ear cleaning. This is a taxable service in most jurisdictions.
Products used during grooming. Shampoo, conditioner, cologne, ear cleaner, and styptic powder used during grooming are consumed in providing the service. They are not sold to the customer. These are business supplies.
Self-wash stations. Some pet stores offer self-wash stations where the customer washes their own dog using your equipment and supplies. This is typically taxed as a service. The soap, towels (if disposable), and other supplies provided are part of the service cost.
Grooming retail add-ons. If you sell the customer a bottle of the same shampoo used during grooming ("take this home for between-appointment maintenance"), that retail sale is covered by your resale certificate at the wholesale level and taxable at the retail level.
Dollar Savings
| Store Type | Monthly Wholesale Purchases | Annual Tax Savings (7%) |
|---|---|---|
| Small neighborhood pet shop | $8,000 | $6,720 |
| Standard independent pet store | $20,000 | $16,800 |
| Large pet store with grooming | $40,000 | $33,600 |
| Multi-location pet retailer | $100,000+ | $84,000+ |
Common Mistakes
Using the resale certificate for grooming supplies. Products consumed during grooming are service supplies, not resale. Only products sold at retail qualify for the resale exemption.
Not understanding pet food taxation. Most states tax pet food at the standard rate (it is not considered "human food" for grocery exemption purposes). A few states have specific exemptions. Your POS needs to reflect the correct rate.
Mixing personal pet expenses with business. Food and supplies for your own pets at home are personal expenses. Buying them through your business on the resale certificate is a common audit flag.
Ignoring e-commerce obligations. If you sell online (your own website, Amazon, Chewy Marketplace), you may have economic nexus obligations in other states. Marketplace platforms handle tax collection under facilitator laws, but your own website sales may require you to register and collect in additional states.
How to Get Started
- Apply for your resale certificate through your state or our service.
- Set up accounts with pet food distributors. Phillips, Central Pet, and Pet Food Experts need the certificate on file.
- Register with direct-to-retailer brands. Fromm, Champion, Stella & Chewy's, and other premium brands.
- Configure your POS for correct tax categories. Pet food, non-food merchandise, grooming services, and live animals may have different tax treatments.