Resale Certificate for Sporting Goods Stores: Tax-Free Equipment and Gear Purchases
Sporting goods stores carry one of the widest product ranges of any retail category. Bicycles, kayaks, firearms, fishing rods, camping gear, team uniforms, footwear, supplements, and everything in between. A mid-size shop holds $80,000 to $200,000 in inventory at any given time. Seasonal restocks for football season, ski season, fishing season, and back-to-school push monthly purchases even higher.
A resale certificate means you buy all of that inventory without paying sales tax to your suppliers. A store doing $25,000/month in wholesale purchases saves $21,000 per year at a 7% rate.
Wholesale Channels for Sporting Goods
Sporting goods stores source from multiple tiers, and each one requires your resale certificate:
Brand-direct wholesale. Nike, Adidas, Under Armour, The North Face, Columbia, Yeti, and hundreds of others sell through wholesale programs. Getting approved often requires proof of a physical retail location, minimum order quantities, and your resale certificate.
Specialty distributors. RSR Group and Lipsey's for firearms. QBP (Quality Bicycle Products) and J&B Importers for cycling. BPS Direct for fishing. These distributors serve specific sport categories and operate on a wholesale-only basis.
General sporting goods distributors. Companies like S.P. Richards, Anaconda Sports (team sports), and regional wholesale houses that carry a breadth of product categories.
Trade shows. Outdoor Retailer (OR Show), the SHOT Show (firearms), Interbike (cycling), ICAST (fishing). Buying at shows requires your certificate.
Online wholesale platforms. Faire, Tundra, and brand-specific B2B portals. Certificate required during registration.
What You Can Buy Tax-Free
Anything that ends up in a customer's hands:
- Athletic apparel and footwear (jerseys, shorts, cleats, running shoes, hiking boots)
- Team sport equipment (footballs, basketballs, baseballs, soccer balls, goal nets, pads)
- Fitness equipment sold retail (dumbbells, kettlebells, resistance bands, yoga mats)
- Outdoor gear (tents, sleeping bags, backpacks, camp stoves, headlamps)
- Cycling (bicycles, helmets, locks, lights, repair kits, clothing)
- Fishing (rods, reels, tackle, waders, coolers)
- Hunting (firearms, ammunition, optics, tree stands, camouflage clothing, game calls)
- Water sports (kayaks, paddleboards, life vests, snorkeling gear)
- Winter sports (skis, snowboards, boots, poles, goggles, gloves)
- Supplements and nutrition (protein powder, energy bars, hydration mixes sold retail)
- Accessories (water bottles, sunglasses, watches, GPS devices)
- Licensed team merchandise (NBA, NFL, MLB jerseys and branded gear)
What You CANNOT Buy Tax-Free
| Item | Why It Is Taxable |
|---|---|
| Display racks and shelving | Store equipment |
| Fitting room mirrors | Store fixtures |
| Demo equipment (not for sale) | Business property |
| Bike repair stand and tools | Shop equipment |
| String machine for tennis rackets | Shop equipment (see note below) |
| POS system | Business equipment |
| Store security system | Business property |
| Employee uniforms with store branding | Business use |
The Repair and Service Question
Many sporting goods stores offer services: bike tune-ups, ski binding mounting, tennis racket stringing, firearm cleaning. The parts and materials used in these services often qualify for the resale exemption because you are selling the parts to the customer as part of the service.
- Bike tubes and cables installed during a repair: These are parts sold to the customer. Tax-free purchase with certificate.
- Tennis strings installed in a customer's racket: You are selling the strings. Tax-free.
- Ski wax applied during a tune-up: In most states, the wax is consumed in the service, not sold separately. Taxable business supply. But if you sell the wax as a separate item, it is resale.
The distinction: are you transferring ownership of a product to the customer, or consuming a supply while performing a service? States draw this line differently, so check yours.
Custom Team Orders and Screen Printing
If your store handles team uniform orders (common for local leagues, schools, and corporate groups), the entire order is a resale transaction. You buy blank jerseys from a supplier, possibly get them printed or embroidered, and sell the finished uniforms to the team.
- Blank jerseys purchased for team orders: Tax-free (resale)
- Screen printing or embroidery services you outsource: Varies by state. In some states, the printing service on goods you own is not taxable because the finished product will be resold. In others, you may pay tax on the service but not on the blanks.
- Ink and thread if you print in-house: Tax-free (becomes part of the product you sell)
See our screen printing guide for details on the printing side.
Dollar Savings
| Store Type | Monthly Wholesale Spend | Annual Tax Savings (7%) |
|---|---|---|
| Small specialty shop (one sport) | $8,000 | $6,720 |
| General sporting goods store | $25,000 | $21,000 |
| Large multi-department store | $60,000 | $50,400 |
| Chain operator (3+ locations) | $150,000+ | $126,000+ |
State-Specific Notes
Pennsylvania
Pennsylvania has a significant exemption: most clothing (including athletic apparel) and footwear are exempt from sales tax at retail. Hunting and fishing supplies may also qualify for specific exemptions. Check the PA exemption list carefully, as it can affect your competitive pricing.
Texas
Texas holds a sales tax holiday each August that includes clothing, footwear, and school supplies (under $100 per item). This drives massive traffic to sporting goods stores. Back-to-school athletic gear is a big category. Form 01-339 for your wholesale purchasing.
California
No special exemptions for sporting goods. Standard sales tax applies to everything. CDTFA seller's permit required. California is the largest market for outdoor recreation and fitness retail.
Colorado
Colorado's home-rule cities complicate things. If your store is in Denver, Aurora, or Colorado Springs, you may need separate city sales tax registrations in addition to the state certificate.
Common Mistakes
Claiming demo equipment as resale. That kayak on the demo rack or the bike customers test-ride is business property until you sell it. If you eventually sell demo equipment, you collect tax from the buyer at that point.
Not tracking consignment correctly. If you sell used sporting goods on consignment (common in cycling and skiing shops), you collect tax from the buyer on the full price. The consignment arrangement does not change the customer's tax obligation.
Ignoring marketplace sales tax. If you sell on Amazon, eBay, or your own website and ship nationwide, marketplace facilitator laws and economic nexus rules apply. See our nexus guide.
How to Get Started
- Apply for your resale certificate through your state or our application service.
- Register with brand wholesale programs. Nike, Adidas, and other major brands require your certificate during dealer application.
- Set up distributor accounts. Category-specific distributors (firearms, cycling, fishing) each need the certificate on file.
- Configure POS for correct tax collection. Different product categories may have different tax rates in your state.