An exemption certificate is a document that grants an individual or organization relief from certain taxes or fees. These certificates are usually issued by a state agency and are meant to provide a financial break for those who meet certain criteria.
For example, distributors are typically exempt from sales tax as the buyer intends to resell the goods purchased. Similarly, a farmer may receive an exemption certificate exempting them from paying taxes on fuel they use for their farming equipment. These certificates can provide a significant savings for those who qualify and are a valuable tool for managing finances.