305.3 Educational and Medical Institutions and Food Service Companies Making Both Retail

Sales and Withdrawing for Use from the Same Stock of Goods. Educational and medical institutions and food service companies that are making both retail sales and withdrawing for use from the same stock of goods are to purchase at wholesale all of the goods so sold or used. They will then report retail sales based on gross proceeds of sales and withdrawals for use based on the property’s fair market value. In order for this provision to apply, the educational or medical institution must have a substantial number of retail sales. To comply with this provision, educational and medical institutions should present to their suppliers a Form ST-8A—Resale Certifi- cate. This will allow the suppliers to sell these goods at wholesale to the educational or medical institution.