Trophy and Awards Shop Resale Certificate Guide: Buy Blanks and Engraving Supplies Tax-Free
Trophy shops and awards businesses buy large volumes of blanks, plaques, medallions, and engraving materials that get customized and resold to customers. A youth sports league order might include 50 trophies at $12 each, requiring $200 to $300 in wholesale blanks and components. Corporate awards orders can run into the thousands.
A resale certificate eliminates the sales tax on those blank trophies, plaque boards, medal blanks, and other materials you purchase to customize and resell. This is a straightforward resale transaction: you buy raw or semi-finished goods, add value through engraving, assembly, or customization, and sell the finished product.
Trophy Shop
Why Trophy and Awards Shops Need a Resale Certificate
Your business model is textbook resale. You purchase trophy components (columns, figures, bases, risers), assemble them into finished trophies, and sell them to customers. You buy blank plaques and engrave them. You order medal blanks and add custom ribbons or engraving. In every case, the physical product transfers to the customer.
Here is the financial impact. A small trophy shop spending $2,000 per month on blanks and materials saves $1,680 per year at a 7% tax rate. A busier shop doing $5,000 per month in materials saves $4,200 annually. Over five years, that is $21,000 that stays in the business.
Apply for Your Resale Certificate
What You Can Buy Tax-Free
Everything that becomes part of the finished award, trophy, or promotional item you sell to a customer qualifies.
Tax-Exempt Purchases (Resale Items)
- Trophy components (columns, risers, bases, figures, cups, and toppers)
- Plaque blanks (wood plaques, acrylic blanks, glass blanks, crystal blanks)
- Medal and coin blanks (zinc die-cast, brass, nickel-plated blanks)
- Engraving plates (brass plates, aluminum plates, sublimation plates)
- Ribbons and lanyards sold with medals or as part of awards
- Gift boxes and presentation cases transferred to the customer
- Sublimation blanks (mugs, phone cases, coasters, ornaments for custom printing)
- Promotional products purchased for resale (pens, koozies, bags, apparel blanks)
- Ink, toner, and sublimation ink used to print on items for sale
- Vinyl and heat transfer material applied to products you sell
- Packaging materials (boxes, tissue paper, bubble wrap) that transfer to the customer
What You CANNOT Buy Tax-Free
Items used in your shop operations but not transferred to customers:
| Item | Why It Is Taxable |
|---|---|
| Engraving machines (rotary, laser, CNC) | Business equipment |
| Sublimation heat presses | Business equipment |
| Computers and design software | Business use |
| Shop fixtures and display cases | Business property |
| Cleaning supplies and maintenance items | Consumed, not resold |
| Drill bits, cutter tips, and consumable tooling | Consumed during production |
| Tape and jigs used for alignment | Shop supplies |
The Tooling Question
Engraving cutter tips, laser tubes, and rotary bits wear out during production. They do not become part of the finished product. In most states, these are taxable consumables. However, states that classify your work as manufacturing may offer a separate manufacturing exemption for tooling and consumables used directly in production. Texas and Ohio are examples of states with broader manufacturing exemptions.
Promotional Products Companies: Additional Considerations
If your business extends into the promotional products space (branded pens, koozies, apparel, tote bags), the same resale principle applies. You purchase blank products, customize them with a client's logo or message, and sell the finished goods.
Key distinction: If a customer hires you to print their logo on 500 t-shirts they already own and provide to you, that is a service, not a resale. You are performing a service (printing) on their property. In most states, that service is taxable differently than selling a finished product. If you supply the blank shirts and print on them, that is a product sale and the blanks qualify for tax-free purchase with your resale certificate.
Dollar Savings by Business Size
| Business Type | Monthly Material Spend | Annual Tax Savings (7%) |
|---|---|---|
| Home-based engraving business | $500 | $420 |
| Small trophy shop | $2,000 | $1,680 |
| Mid-size awards and promo company | $5,000 | $4,200 |
| Large promotional products distributor | $20,000+ | $16,800+ |
For a promotional products company spending $20,000 per month on blank inventory, the annual tax savings at 7% is $16,800. That is a meaningful number.
State-Specific Notes
California
California requires a seller's permit for trophy and awards businesses. Engraving and customization are considered part of the product sale, so the entire selling price (materials plus customization) is taxable to the customer. Labor is not separately exempt for custom awards.
Texas
Texas is favorable for trophy shops. The state treats custom manufacturing as a taxable sale of tangible personal property, and materials purchased for that purpose are exempt with a resale certificate (Form 01-339). Texas also offers a manufacturing exemption for equipment used directly in production.
New York
New York allows resale certificates (Form ST-120) for trophy and awards materials. Custom engraving is considered part of the product, so the total charge to the customer is taxable. Promotional products sold to resellers (such as marketing agencies buying for their clients) can be purchased tax-free if the reseller provides their own certificate.
Florida
Florida requires registration and exempts materials purchased for resale. Custom trophy and awards production is treated as a sale of tangible personal property. Engraving services that result in a finished product for sale are part of the taxable product.
Illinois
Illinois uses a Retailer's Occupation Tax. Trophy blanks, plaque materials, and other inventory for resale are exempt with a valid resale certificate. The state has different tax rates for qualifying food and drugs versus general merchandise, but awards products fall under the standard rate.
Common Mistakes in the Awards Industry
Mixing Personal and Business Purchases
Ordering a custom plaque for your kid's soccer team through your business account without paying tax is misuse of the certificate. If you are the end consumer, you owe tax.
Not Charging Tax on Rush Fees
In most states, rush fees and expedited production charges are part of the taxable selling price when they are connected to a product sale. Do not assume surcharges are exempt.
Ignoring Drop-Ship Scenarios
If you order promotional products from a manufacturer who ships directly to your customer (drop shipping), the tax obligations get complicated. You may owe tax based on the destination state's rules, not your home state. See our dropshipping guide for details.
Forgetting to Renew
Some states require periodic renewal of your resale certificate or sales tax registration. If your certificate lapses, suppliers may start charging you tax again. Keep renewal dates on your calendar.
How to Get Started
Step 1: Apply for Your Resale Certificate
Apply through your state's tax authority or through our application service. Processing time varies by state but is typically a few days to two weeks.
Step 2: Set Up Supplier Accounts
Provide your resale certificate to your suppliers. Major trophy and awards distributors (Crown Awards, Beacon Awards, JDS Industries, Sublimation Blanks) will keep your certificate on file and automatically exempt your purchases from sales tax.
Step 3: Separate Resale from Business Use
Maintain clear records. When you buy a laser engraver, that is business equipment (taxable). When you buy 100 plaque blanks, those are resale inventory (exempt). Your accounting system should separate these categories.
Step 4: Collect Sales Tax From Customers
You buy tax-free, but you sell with tax. Register with your state, charge the correct rate on finished products, and file your returns on time.
Apply for Your Resale Certificate