This is soothing . <| sep |> Please do . <| sep |> You bought the items inventory with the intent to resell them . No sales or use tax would generally be payable under the sale for resale exemption . When you sell them to your customers , sales or use tax will be payable unless the customer provides you with an exemption certificate . If , instead of selling an item you pull it out of inventory and convert it to personal or some other use , you would be liable for sales tax . Say you bought 100 radios at $ 100 each with the intent to resell them . No tax would be paid at the time of purchase . You decide to give five of them out to friends . You would probably be required to coughup Use tax on the $ 500 in value of the radios .