The purchase of items for resale would be exempt from City sales tax, provided that sales tax is collected on the price charged to the end user. A Boulder radio station holds an event at the Boulder Reservoir. The radio station purchases t-shirts to be sold at the event and advertising flyers to promote the event. The radio station must pay sales tax on the flyers, but not on the t-shirts, because they were purchased for resale and sales tax will be collected on the price charged at the event. A Boulder radio station purchases two transmitting towers, one to be delivered and installed in Boulder the other in Nederland.
Sales tax is due on the tower delivered and installed in Boulder.