California doesn't issue anything officially called a "resale license." What people mean is a seller's permit from the California Department of Tax and Fee Administration (CDTFA). The seller's permit lets you sell taxable goods, including vehicles, and its number is what you put on a resale certificate (form CDTFA-230) so you can buy inventory without paying sales tax, because you'll collect tax when you resell. Licensed car dealers, including wholesale dealers, need a seller's permit.
Educational information only. This article is not legal, tax or financial advice. Confirm your situation with CDTFA or a tax professional.
In this article
The three terms, side by side
| Term | What it is | Who issues it |
|---|---|---|
| Seller's permit | Registration to sell tangible goods in California and report sales tax | CDTFA (free to apply; a security deposit can be required) |
| Resale certificate (CDTFA-230) | A form you give a supplier saying you're buying to resell, so the supplier doesn't charge you sales tax | You fill it out, using your seller's permit number |
| "Resale license" / "resale number" | Informal names for the seller's permit or its number | Not an official California document |
How dealers use them
- Get your seller's permit from CDTFA. DMV expects it as part of the dealer license process. See the seller's permit guide.
- Buy inventory for resale from other dealers or auctions and give them a resale certificate with your permit number.
- Collect and report tax when you retail a car to a California customer. Sales to other dealers for resale are documented with their resale certificate.
- Verify buyers' permits when you accept a resale certificate. CDTFA verifies permits online and at 1-888-225-5263.
Common mistakes
- Using a resale certificate for something you'll use yourself, such as a shop tool or a personal car. That isn't a purchase for resale.
- Accepting a resale certificate without checking that the permit is valid
- Thinking the seller's permit replaces the DMV dealer license. It doesn't. You need both to sell cars as a business.
Frequently asked questions
Is a resale license the same as a seller's permit?
In California, yes in everyday speech. The official document is the seller's permit; "resale license" isn't an official name.
Do wholesale dealers need a seller's permit?
Yes. CDTFA requires dealers, including wholesalers, to hold one.
Do you need a seller's permit to sell cars online?
Yes, if you're in the business of selling vehicles. See Do you need a seller's permit to sell cars online?
Related questions
- What is a seller registration number?
- What do you need to get a dealer license in California?
- Sales tax on a private-party car sale in California
- Back to the California Dealer License FAQ
Next step: Dealer license and seller's permit guide
Resources
- CDTFA Publication 107: Do you need a California seller's permit? (Opens in new window)
- CDTFA-230 General Resale Certificate (PDF) (PDF opens in new window)
- CDTFA: Valid resale certificates (Publication 103) (Opens in new window)
Sources: CDTFA Publications 107 and 34 · CDTFA-230. Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice. Tax rules change; confirm with CDTFA or a licensed tax professional.