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Publication 750

A Guide to Sales Tax in

New York State

                       Pub 750 (11/15)



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                                                                                             Publication 750 
                                                                                                    (11/15) 

                                      About this publication 

This publication is a comprehensive guide to New York State and local sales and use taxes for businesses that 
sell taxable tangible personal property, perform taxable services, receive admission charges, or operate a hotel 
or motel, and restaurants, taverns, or other establishments that sell food and drink.  

Note:  For basic, easy-to-understand explanations of particular sales tax topics, see our sales tax bulletins, 
available on the Tax Department’s website at www.tax.ny.gov. We continue to add new bulletins on a regular 
basis. 

It is the department’s goal that all taxpayers meet their sales tax obligations and pay the correct amount of tax 
they owe. If your business makes sales of property or services that are subject to sales tax, you must register 
for sales tax purposes and obtain a Certificate of Authority. You should thoroughly read all the information 
contained in this publication so that you become aware of your obligations in regard to sales tax. If you do not 
fulfill your obligations under the Sales Tax Law, you could be subject to penalties. Some of these obligations 
include, but are not limited to: 

• registering for sales tax purposes and displaying aCertificate of Authority(see page 12, How to obtain
  your Certificate of Authority) and Tax Bulletin How to Register for New York State Sales Tax (TB-ST-360);

• collecting the proper amount of sales tax from customers (see page 22, Calculating and stating the sales
  tax) and Tax Bulletin Taxable Receipt-How Discounts, Trade-ins and Additional Charges Affect Sales Tax
  (TB-ST-860);

• issuing and accepting properly-completed sales tax exemption certificates (see page 27, Exemption
  certificates) and Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240);

• maintaining records of sales and purchases in an orderly and adequate manner (see Part 3, Record
  keeping) and Tax Bulletin Recordkeeping Requirements for Sales Tax Vendors            (TB-ST-770);

• filing sales tax returns and remitting any sales tax due in a timely manner as a trustee for the state (see
  Part 4, Filing your sales tax return), Tax Bulletins Filing Requirements for Sales and Use Tax Returns
  (TB-ST-275)  , E-File Mandate for Businesses TB-MU-210) and E-File Mandate for Tax Return Preparers
  (TB-MU-220);

• assuming personal liability for the payment of sales tax by certain responsible persons of a business; and

• providing notice to the department 20 days prior to purchasing or acquiring business assets from a sales
  tax vendor, other than in the ordinary course of business (see Part 6, Purchasing or acquiring a business
  or its assets:  Caution).

Publication 900, Important Information for Business Owners, and Tax Bulletin Business Information for Sales 
Tax Purposes (TB-ST-75)  provide additional information on your responsibilities under the Sales Tax Law. 

Obligation to register for sales tax purposes 

You must register for sales tax purposes with the Tax Department if you make sales that are subject to tax.  In 
addition, you must be registered to issue or accept most exemption certificates and documents. See Part 1, 
Registration, to help you determine if you are required to register for sales tax purposes.  

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As used in this publication and for purposes of the Tax Department’s registration rules, the term vendor 
includes persons required to collect sales tax on sales and transactions described in Part II, Making sales. 
Also, when used in this publication, the termssales,purchases,taxable sales, andtaxable purchases, include, 
but are not limited to, where appropriate, the sale or purchase of the following:  tangible personal property, 
certain services, rentals of hotel and motel rooms, admissions to places of amusement, and dues paid to social 
or athletic clubs. See Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175). 
 
Note:  See page 17, Sales by New York and United States governmental entities and certain exempt 
organizations, for information relating to sales by governmental entities and certain exempt organizations. 
 
Obligation to collect and remit tax 
 
Once you are registered for sales tax purposes, you are responsible for collecting and remitting both state and 
local sales taxes to the Tax Department, along with any use tax you may owe. If your business is an entity 
such as a corporation or a partnership, the responsibility for collecting and remitting sales tax extends to the 
responsible persons of the business. Therefore, certain owners, officers, directors, employees, partners or 
members (responsible persons) of a business can be held personally liable for the tax the business owes. As 
trustees for the state, a business and its responsible persons must remit any sales tax that is due with timely 
filed sales tax returns. If you fail to collect and remit sales tax we may impose penalties and interest. (See 
Part 4, Filing your sales tax return.) 
 
Recordkeeping 
 
You must keep detailed records of every sale, the amount paid, charged, or due on the transaction, and the 
sales tax that is due, if any. Keeping good records of your business operation will help you prepare accurate 
and complete sales tax returns. (See Part 3, Recordkeeping and Tax Bulletin Recordkeeping Requirements for 
Sales Tax Vendors (TB-ST-770).) 
 
In addition to being required to register for sales tax purposes, you may also be subject to registration, 
collection, or payment requirements for other taxes. For a more detailed description of these taxes, see 
Publication 20, New York State Tax Guide for New Businesses.  
 
Additional information 
 
The department has many general and industry-specific sales tax publications and technical service 
memoranda that provide additional detailed information on various sales tax topics. You can obtain any tax 
bulletin, publication, memorandum (TSB-M) or document referenced in this publication by visiting the Tax 
Department’s website or by contacting us directly. You can also subscribe to receive timely notification of sales 
tax changes by using our e-mail subscription service. 
 
If you have any questions about sales and use tax, you may contact us by using the information provided in the 
Need help? section on the back cover of this publication. 
 
        Note:   A publication is an informational document that addresses a particular topic of interest to 
                taxpayers. Subsequent changes in the law and regulations, judicial decisions, Tax Appeals 
                Tribunal decisions, or changes in department policies could affect the validity of the 
                information contained in a publication. Publications are updated regularly and are accurate on 
                the date issued. 

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Table of contents                                                    Page 
 
Part I – Registration 
Who must be registered for sales tax purposes ................................................................................................. 7 
Rules for out-of-state businesses ...................................................................................................................... 8 
About your Certificate of Authority ..................................................................................................................... 9 
Types of Certificates of Authority ..................................................................................................................... 10 
How to obtain your Certificate of Authority ....................................................................................................... 12 
Denial of a Certificate of Authority  .................................................................................................................. 12 
Taxpayers’ Bill of Rights  ................................................................................................................................. 13 
Registration rules for farmers  .......................................................................................................................... 13 
Registration rules for contractors ..................................................................................................................... 13 
Registration rules for manufacturers  ............................................................................................................... 14 
 
Part II – Making sales 
Taxable sales .................................................................................................................................................. 14 
Additional sales taxes and fees you may be required to collect  ...................................................................... 19 
Sales taxes imposed only within New York City ............................................................................................... 20 
Sales taxes imposed by certain school districts  .............................................................................................. 21 
Calculating and stating the sales tax  ............................................................................................................... 22 
Exempt sales  .................................................................................................................................................. 25 
Exempt sales – exemption certificate required ................................................................................................. 26 
Exemption certificates ..................................................................................................................................... 27 
Exempt purchasers .......................................................................................................................................... 28 
Taxable business purchases ........................................................................................................................... 29 
 
Part III – Recordkeeping 
Recordkeeping rules  ....................................................................................................................................... 31 
 
Part IV – Filing your sales tax return 
Filing requirements  ......................................................................................................................................... 33 
Completing your sales and use tax return ........................................................................................................ 35 
 
Part V – Show and entertainment promoters 
Show promoters .............................................................................................................................................. 37 
Entertainment promoters  ................................................................................................................................ 38 
 
Part VI – Purchasing or acquiring a business or its assets:  Caution 
Bulk sales transactions .................................................................................................................................... 40 
 
Appendix – List of common sales tax forms  .................................................................................................... 43 
 
Need help? ......................................................................................................................................... Back cover 
 
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                          Part 1 – Registration 

                        Who must be registered for sales tax purposes 

 You must be             If you will be selling property or services in New York State that are subject 
 registered for sales    to sales tax, you may be required to collect the sales tax from the person to 
 tax purposes with       whom you make the sale. (The discussion on page 14 under Taxable sales 
 the Tax Department      will help you determine whether the sales you make are subject to sales 
 if you will be selling  tax.) In general, the sales tax you must collect and remit is computed using 
 tangible personal       the combined state and local rate in effect in the locality where you deliver 
 property or services    the taxable product or service to the customer. See pages 22 through 25 of 
 on which you are        this publication for information on the special rules for calculating and 
 required to collect     collecting tax on sales of motor fuels, alternative fuels, motor vehicles, and 
 sales tax               certain boats. If you must collect sales tax on your sales, then you must 
                         register for sales tax purposes with the Tax Department and obtain a 
                         Certificate of Authority (see page 12 and Tax Bulletin How to Register for 
                         New York State Sales Tax (TB-ST-360)). 
                          
 You must be             You must also be registered for sales tax purposes to issue or accept most 
 registered for sales    New York State sales tax exemption documents. For example, even though 
 tax purposes to         wholesalers may never collect sales tax because all of their purchases and 
 issue or accept most    sales are for resale (and, therefore, are eligible for exemption from sales 
 New York State          tax), they must still be registered to legally issue and accept most 
 sales tax exemption     exemption documents.  
 certificates             
                         For additional information on who must be registered for sales tax purposes, 
                         see Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175). 
                          
 If you engage in        If you are required to register for sales tax purposes but fail to do so and 
 business without        you engage in business without having obtained a valid Certificate of 
 obtaining a valid       Authority, you will be subject to a penalty. The penalty is up to $500 for the 
 Certificate of          first day business is conducted without having obtained a valid Certificate of 
 Authority, you will     Authority, plus up to $200 per day for each day thereafter. The maximum 
 be subject to a         penalty for engaging in business without obtaining a valid Certificate of 
 substantial penalty     Authority is $10,000. See Tax Bulletin Sales and Use Tax Penalties 
                         (TB-ST-805). 
                          
 If you are changing     If you change your organizational structure (for example, from a sole 
 your organizational     proprietorship to a corporation, a limited liability company, or a partnership), 
 structure, you must     the new organization must register for sales tax purposes and obtain a new 
 register for sales tax  Certificate of Authority. The new business must obtain its own Certificate of 
 purposes as a new       Authority before it begins operating. You must also file a final return for your 
 business                existing business and surrender or destroy the Certificate of Authority that 
                         was issued to the existing business. See Tax Bulletins Amending or 
                         Surrendering a Certificate of Authority (TB-ST-25) and Filing Period 
                         Indicators on Final Sales Tax Returns (TB-ST-270) . 
                          
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 Purchasing,          If you are purchasing, transferring, or assigning either part or all of the 
 transferring, or     assets of an existing business, there are specific rules that apply to the 
 assigning business   transaction (see Part 6, Purchasing or acquiring a business or its assets:  
 assets               Caution). 
                       
                       Rules for out-of-state businesses 

 Even though you are  Even though you are located outside of New York State, if you have 
 located in another   customers in New York State, and you have sufficient connection with 
 state, if you have   New York State, you may be required to register for New York State and 
 customers in         local sales tax purposes. For example, if you are located outside New York 
 New York State, you  State, make sales of taxable products to persons within New York State, 
 may be considered a  and regularly deliver the products in your trucks to your New York State 
 vendor for New York  customers, you have sufficient connection with New York State and must 
 State sales tax      register for sales tax purposes and collect and remit sales tax. You must 
 purposes             also register if you solicit sales of taxable products or services through 
                      employees, salespersons, independent agents, or service representatives 
                      located in, or who enter New York State. 
                       
                      If the only connection you have with New York State is the delivery of your 
                      products into the state by the U.S. Postal Service or common carrier, you 
                      are not required to register or collect sales tax. Thus, some out-of-state 
                      businesses (including some mail order companies) may not have sufficient 
                      connection with New York State to be required to collect and remit sales 
                      tax. 
                       
                      However, out-of-state sellers that make taxable sales of tangible personal 
                      property or services in New York are presumed to be sales tax vendors 
                      under certain conditions where they have agreements with New York 
                      residents to compensate them for referring potential customers to the seller. 
                      Also, under certain conditions, sellers of tangible personal property or 
                      services located outside of New York that have an affiliate located in 
                      New York may also be required to register to collect and remit sales tax. For 
                      more detailed information, see TSB-M-08(3)S, New Presumption Applicable 
                      to Definition of Sales Tax Vendor, TSB-M-08(3.1)S, Additional Information 
                      on How Sellers May Rebut the New Presumption Applicable to the 
                      Definition of Sales Tax Vendor as Described in TSB-M-08(3)S, and 
                      TSB-M-09(3)S, Definition of a Sales Tax Vendor is Expanded to Include 
                      Out-of-State Sellers with Related Businesses in New York State.  
                       
                      Although, as an out-of-state business, you may not be required to collect 
                      sales tax from your customers in New York State, your customers are still 
                      responsible for the payment of sales or use tax on their purchases. The use 
                      tax complements the sales tax. An example of when use tax applies is when 
                      a New York State resident purchases taxable products or services outside 
                      of New York State and then brings them or has them brought into New York  
                      State for use here. For more information, see Tax Bulletin Use Tax for 
                      Businesses (TB-ST-910). 
                       
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                       Although you may not have sufficient connection with New York State to 
                       require you to be registered, you may voluntarily register for sales tax 
                       purposes to collect and remit the sales tax that is otherwise due from the 
                       purchaser. You will then have the same obligations as vendors that are 
                       required to register with the Tax Department. 
                        
                       If you are required to register for sales tax purposes, or if you voluntarily 
                       register, you must collect sales tax on all taxable sales delivered by you, or 
                       for you, to the purchaser, or the purchaser’s designee, in this state. The tax 
                       due is the combined state and local rate in effect in the locality where the 
                       taxable product or service is delivered. 
                        
                       For more information on registration rules for out-of-state businesses, see 
                       Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175). 
                        
                       About your Certificate of Authority 
                        
 Your Certificate of   Your Certificate of Authority authorizes you to collect sales tax on your 
 Authority authorizes  taxable sales and to issue and accept certain New York State sales tax 
 you to collect sales  exemption certificates. You cannot legally make taxable sales, collect tax on 
 tax on your taxable   your taxable sales, or issue or accept many exemption documents until you 
 sales and to issue    receive your Certificate of Authority. Exemption certificates are forms that a 
 and accept certain    purchaser fills out and gives to the seller, so that there is a record of why 
 New York State        the seller did not collect sales tax on the sale. 
 sales tax exemption    
 certificates          Once you receive your Certificate of Authority, you are considered to be in 
                       business for sales tax purposes even if you never make a sale or never 
                       open the doors of your establishment. Therefore, it is important that you file 
                       your sales tax returns on time, even if you did not have any taxable sales 
                       during the reporting period, to avoid penalties for not filing. 
                        
 You must              You must prominently display your Certificate of Authority at your place of 
 prominently display   business. If you have no permanent physical location, you can attach it to 
 your Certificate of   your truck, cart, wagon, stand, or other vehicle or facility from which you 
 Authority at your     conduct business. You are subject to a $50 penalty if you fail to properly 
 place of business     display your Certificate of Authority. See Tax Bulletin Sales and Use Tax 
                       Penalties (TB-ST-805). 
                        
                       If you have more than one place of business, you must display a Certificate 
                       of Authority at each place of business. You may not use photocopies of a 
                       Certificate of Authority but may request a separate certificate for each 
                       location from the Tax Department. For more information on applying for a 
                       Certificate of Authority when you have multiple business locations, see How 
                       to obtain your Certificate of Authority on page 12. 
                        
                       If you already received your Certificate of Authority, but need a duplicate 
                       copy because the original was lost or destroyed, you may contact us and 
                       request a replacement. 
                        
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 A Certificate of     A Certificate of Authority is not transferable or assignable. If you buy an 
 Authority is not     ongoing business, you must apply for your own certificate. If you sell, 
 transferable         transfer, or assign your business or cease doing business, you must 
                      surrender your Certificate of Authority to the Tax Department or destroy it. 
                      See Part 6 on page 40 for additional information on the rules regarding the 
                      purchase, transfer, or assignment of a business. 
                       
                      Although your Certificate of Authority is not transferable or assignable, it 
                      may be amended to account for changes in the address of the business or 
                      business name. If you need to change your address you can do so by 
                      visiting our website or by contacting us directly. You can also use 
                      Form DTF-96, Report of Address Change for Business Tax Accounts. 
                      Form DTF-95, Business Tax Account Update, can be used to provide the 
                      Tax Department with information regarding address changes, telephone 
                      number changes, and certain changes in business activities. You may 
                      report some changes in business activities by contacting us directly.  
                       
 If you cease doing   If you cease doing business, you must surrender or destroy your Certificate 
 business             of Authority and file a final sales tax return for the business within 20 days of 
                      terminating the business. Special rules apply if you Web File a final sales 
                      tax return. For more information, visit the Online Services section of our 
                      website. Also, see Tax Bulletins Filing a Final Sales Tax Return 
                      (TB-ST-265) and Amending or Surrendering a Certificate of Authority 
                      (TB-ST-25). 
                       
                       Types of Certificates of Authority 

 The Tax Department   The Tax Department issues two types of Certificates of Authority for sales 
 issues two types of  tax purposes: 
 Certificates of       
 Authority for sales    • regular, and 
 tax purposes           • temporary. 
                       
                      The type of Certificate of Authority you apply for is based on the anticipated 
                      duration of your business activities.  
                       
                      Note: The department no longer issues theCertificate of Authority for 
                      Show and Entertainment Vendors. If you make sales at shows or 
                      entertainment events, such as flea markets, craft shows, antique shows, 
                      fairs, and similar shows, you should apply for a regular Certificate of 
                      Authority. 
                       
                      See TSB-M-08(13)S, Changes Regarding the Issuance of Certificates of 
                      Authority to Show and Entertainment Vendors, for more information. 
                       
 Regular Certificate  You should apply for a regular Certificate of Authority if you will be making 
 of Authority         ongoing taxable sales from your home, a shop, a store, a cart, a stand, or 
                      any other facility or facilities from which you regularly conduct your 
                      business. It does not matter whether you own or rent the facility. 
                       
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                 You must apply for a regular Certificate of Authority at least 20 days 
                 before you begin operating your business in New York State. See How 
                 to obtain your Certificate of Authority on page 14 and Tax Bulletin How To 
                 Register for New York State Sales Tax (TB-ST-360). 
                  
 Temporary       You may apply for a temporary Certificate of Authority if you expect to make 
 Certificate of  taxable sales in New York State for no more than two consecutive quarterly 
 Authority       sales tax periods in any 12-month period. In determining whether you meet 
                 this requirement, keep in mind that the sales tax quarters are:  March 1 
                 through May 31, June 1 through August 31, September 1 through 
                 November 30, and December 1 through February 28 (February 29 in a leap 
                 year).  
                  
                 Show and entertainment vendors may not apply for a temporary Certificate 
                 of Authority; they must apply for a regular Certificate of Authority. 
                  
                 Even if you are eligible to obtain a temporary Certificate of Authority  , it may 
                 be to your benefit to apply for a regular Certificate of Authority. That is 
                 because a temporary Certificate of Authority is only good for the two 
                 consecutive quarterly sales tax periods listed on your application and on 
                 your temporary Certificate of Authority. In addition, if you operate the same 
                 business or another business during the next 12-month period, you must 
                 apply for a new temporary Certificate of Authority at least 20 days before 
                 you resume doing business. 
                  
                  Example:  You sell Christmas trees in November and December, and 
                  your taxable sales consist only of sales during this period. Accordingly, 
                  you are eligible to apply for a temporary Certificate of Authority. 
                  However, if you intend to conduct this type of business activity every 
                  year, you may wish to apply for a regular Certificate of Authority. 
                  Therefore, you would not have to apply every year for a new temporary 
                  Certificate of Authority, as the regular Certificate of Authority would 
                  continue to be in effect until you indicate that you are no longer doing 
                  business by filing a final return. However, once you receive a regular 
                  Certificate of Authority you must file sales and use tax returns even if 
                  you have no sales tax liability. Also, even if you file a final return, and 
                  subsequently change your plans, you may apply for reactivation of your 
                  regular Certificate of Authority simply by contacting us directly (as long 
                  as it is within one year of deactivation). 
                  
                  Example:  You have no consistent year-to-year sales activity in 
                  New York State. However, you intend to sell costume jewelry from a 
                  kiosk in the common area of a mall from October through December. 
                  This will be your only business activity in New York State this year, and 
                  you do not intend to sell in New York State next year. You may apply for 
                  a temporary Certificate of Authority. 
                  
                  Example:  You intend to sell crafts at a farmers’ market for seven 
                  months, from the beginning of April through the end of October. This 
                  seven-month period covers three consecutive quarterly sales tax 
                  periods:  March through May, June through August, and September 

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                        through November. You may not apply for a temporary Certificate of 
                        Authority. You must apply for a regularCertificate of Authority .

                       If you qualify to apply for a temporary Certificate of Authority, you 
                       must apply for it at least 20 days before you begin operating your 
                       business. (See How to obtain your Certificate of Authority, below.) 

                       How to obtain your Certificate of Authority          

                       You must apply for a Certificate of Authority at least 20 days before you 
You must apply for a 
Certificate of         begin  operating  your  business.  You  can  apply  online  by  visiting New 
Authority at least 20  York Business Express. 
days before you 
begin business         If you cannot apply online, you must contact the Sales Tax Information 
                       Center. See the Need help? section on the back cover of this publication. 

                       The Tax Department will review your completed application. If your 
                       application is approved, we will mail you a Certificate of Authority. You 
                       cannot legally make taxable sales, collect tax on your taxable sales,  or
                       issue or accept most exemption certificates until you receive your Certificate 
                       of Authority. If you listed several places of business on your application, the 
                       Tax Department will provide you with a separate Certificate of Authority for 
                       each location. 

                       Denial of a Certificate of Authority         

The Tax Department     The Tax Department may deny your request for a Certificate of Authority 
may deny your          under certain circumstances. For example, if you owe any tax imposed 
request for a          under the Tax Law that was finally determined to be due from you that you 
Certificate of         have not paid, we may deny your application for a Certificate of Authority. 
Authority              Remember that you cannot legally make taxable sales, collect tax on your 
                       taxable sales, or issue or accept most New York State exemption 
                       certificates until you receive a Certificate of Authority. See page 7 for 
                       information regarding the penalties imposed for engaging in business 
                       without first receiving a Certificate of Authority. 

Within 30 days of      If we deny your timely and complete application for a Certificate of Authority, 
the mailing of the     we will send you a Notice of Proposed Refusal to Register by certified mail 
notice that your       within five days of the date we receive your application. The Notice of 
application for a      Proposed Refusal to Register will state the basis for the proposed refusal. If 
Certificate of         you believe that the Tax Department has made a mistake, you should file a 
Authority has been     request for a conference with the Bureau of Conciliation and Mediation 
denied, you may file   Services, or file a petition for an expedited hearing with the Division of Tax 
either a request for a Appeals. You must file the application for a conference or expedited hearing 
conference, or a       within 30 days of the mailing of the Notice of Proposed Refusal to Register; 
petition for a hearing otherwise it becomes final. Once the Notice of Proposed Refusal to Register 
                       becomes final, you are prohibited from engaging in any business in 
                       New York State for which a Certificate of Authority is required. 

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                              Taxpayers’ Bill of Rights 

                         New York State has a Taxpayers’ Bill of Rights that enhances and 
                         formalizes your rights as a New York State taxpayer. In part, the Bill of 
                         Rights requires the Tax Department to advise you, in writing, of your rights 
                         to appeal a departmental decision. For more information on your rights, see 
                         Publication 131, Your Rights and Obligations Under the Tax Law, or contact 
                         us.  
                          
                          Registration rules for farmers 

 Farmers are not         A farmer is not required to register for sales tax purposes if the only sales 
 required to register    the farmer makes are sales of food and food products that are exempt from 
 for sales tax           tax. For example, if a farmer sells fruits, vegetables, baked goods, jellies, 
 purposes unless         jams, and preserves at a roadside stand, the farmer will not be required to 
 they make sales that    register. In addition, farmers can issue Form ST-125, Farmer’s and 
 are subject to sales    Commercial Horse Boarding Operator’s Exemption Certificate, to make 
 tax                     purchases exempt from tax when purchasing certain goods and services 
                         used predominantly (more than 50%) in farm production, even though the 
                         farmer is not registered for sales tax purposes. 
                          
                         However, if a farmer sells taxable tangible personal property such as hay, 
                         livestock, plants, shrubs, trees, homemade crafts, or items such as candy 
                         and other confections, or sells food or drink for consumption on the 
                         premises where sold, then the farmer must register for sales tax purposes 
                         and collect sales tax on sales of taxable tangible personal property and 
                         services, or taxable food and drink. See Tax Bulletin Exemptions for 
                         Farmers and Commercial Horse Boarding Operators (TB-ST-244). 
                          
                          Registration rules for contractors 

                         A contractor is not required to register for sales tax purposes if the 
                         contractor only contracts or subcontracts to do capital improvements. For 
                         more information on the application of the Sales Tax Law to contractors and 
                         the definition of capital improvement, see Publication 862, Sales and Use 
                         Tax Classifications of Capital Improvements and Repairs to Real Property, 
                         and Tax BulletinsCapital Improvements (TB-ST-104), andContractors-
                         Sales Tax Credits (TB-ST-130),  
                          
 Contractors must        Contractors must register for sales tax purposes if they will make sales that 
 register for sales tax  are subject to sales tax. For example, if a construction contractor makes 
 purposes if the sales   repairs such as repairing a roof or a leaking pipe, the contractor must 
 they make are           register for sales tax purposes. 
 subject to tax, or to    
 issue certain           A contractor is required to be registered for sales tax purposes if the 
 exemption               contractor is also a retailer. For example, if a tile shop both installs tile and 
 documents               sells tile at retail, the contractor must register for sales tax purposes.  
                          
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                         A contractor must also register for sales tax purposes in order to issue an 
                         exemption document to make certain specific purchases exempt from sales 
                         tax (such as a purchase of tangible personal property that is installed into 
                         real property owned by an exempt organization). 
                          
                         Registration rules for manufacturers 

                         As used in this section, the term manufacturer means and includes 
                         manufacturers, processors, generators, assemblers, refiners, miners, and 
                         extractors. 
                          
 Manufacturers must      A manufacturer may purchase raw materials and certain machinery, 
 register for sales tax  equipment, parts, tools, supplies and related services exempt from sales 
 purposes if the sales   tax. A manufacturer must be registered for sales tax purposes in order to 
 they make are           make these purchases exempt from sales tax and issue the appropriate 
 subject to tax or to    exemption documents. See Tax Bulletin Machinery, Equipment, Materials 
 issue or accept most    and Services Used in Production (TB-ST-552). 
 exemption                
 documents               A manufacturer must also register for sales tax purposes to accept a resale 
                         certificate from a customer. For more information, see Publication 852, 
                         Sales Tax Information For:  Manufacturers, Processors, Generators, 
                         Assemblers, Refiners, Miners and Extractors, and Other Producers of 
                         Goods and Merchandise. 
                          
                               Part 2 – Making sales 

                                     Taxable sales 

                         The following products and services are subject to sales tax when delivered 
                         in New York State, unless specifically exempted or excluded. This list is 
                         intended to provide general guidelines of the types of sales that are subject 
                         to tax and is not all-inclusive. If your business will be making sales of any of 
                         these types of products or services, you are required to register for sales tax 
                         purposes and obtain a valid Certificate of Authority prior to doing business 
                         in New York State.  
                          
                         For further information regarding products and services subject to sales tax, 
                         see Tax Bulletin Quick Reference Guide for Taxable and Exempt Property 
                         and Services (TB-ST-740). 
                          
 Items and services      Generally, the sales tax is imposed on: 
 subject to tax           
                          • Retail sales of tangible personal property; unless specifically exempted 
                          in the law. 
                          • Sales of certain services (see page 16). 
                          • Sales of gas, electricity, refrigeration, and steam (utilities). 
                          • Sales of gas, electric, refrigeration and steam services (utilities). 
                          • Sales of telephony and telegraphy. 
                          
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                     • Sales of telephone and telegraph service (including telephone 
                      answering services, facsimile transmission services, and mobile 
                      telecommunications services). 
                     • Sales of food and drink for on-premises consumption, for example, 
                      when sold by restaurants and taverns; see Tax Bulletin Sales By 
                      Restaurants, Taverns and Similar Establishments (TB-ST-806). 
                     • Sales of food and drink when sold by caterers; see Tax Bulletin 
                      Caterers and Catering Services (TB-ST-110). 
                     • Sales of sandwiches and heated food; see Tax Bulletin Sandwiches 
                      (TB-ST-835). 
                     • Rent for occupancy of hotel or motel rooms (including bed and 
                      breakfasts, boarding houses, guest houses, etc.); for more information 
                      see Publication 848, A Guide to Sales Tax for Hotel and Motel 
                      Operators, and Tax Bulletin Hotel and Motel Occupancy (TB-ST-331). 
                     • Admission charges to places of amusement, other than live dramatic 
                      or musical arts performances, motion picture theaters, sporting 
                      facilities or activities in which the patron is the participant, live circus 
                      performances, or charges which are taxed under any other law of this 
                      state, such as for admissions to race tracks, boxing, sparring or 
                      wrestling matches or exhibitions. Note:  75% of admission charges to 
                      qualifying places of amusement are exempted from the imposition of 
                      sales tax. See Tax Bulletins Amusement Parks - Admission, Ride, and 
                      Other Charges (TB-ST-30) and Admission Charges to a Place of 
                      Amusement (TB-ST-8). 
                     • Dues, including initiation or membership fees, paid to social or athletic 
                      clubs when the combined dues and fees are more than $10 per year. 
                     • The charges of a roof garden, cabaret, or other similar place. Note:  
                      When certain conditions are met, a portion of the charges made by a 
                      roof garden, cabaret, or other similar place for admission to see a 
                      dramatic or musical arts performance is exempt from sales tax. (See 
                      TSB-M-06(15)S, Supplemental Summary of Recently Enacted 
                      Legislation Affecting Sales and Use Taxes Effective in 2006.) 
                     
 Sales of tangible  The term tangible personal property means physical personal property, of 
 personal property  any nature, that has a material existence and is perceptible to the human 
                    senses. The term sale includes outright sales, rentals, leases, and licenses 
                    to use. Tangible personal property includes a variety of goods. Examples of 
                    taxable sales of tangible personal property include, but are not limited to, 
                    sales of: 
                     
                     • furniture, appliances, and lighting fixtures; 
                     • certain clothing and footwear; see Tax Bulletin Clothing and Footwear 
                      Exemption (TB-ST-122);* 
                     • machinery and equipment, parts, tools, and supplies; 
                     • computers; 
                     • prewritten (canned/off-the-shelf/standard) computer software (whether 
                      transferred by CD-ROM, Internet download, remote access, etc.); see 
                      Tax Bulletin Computer Software (TB-ST-128); 
                     • motor vehicles; 
                      
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                       • boats and yachts; for information on the partial exemption for vessels, 
                         see TSB-M-15(2)S, Changes to the Application of Sales and Use Tax 
                         to Vessels; 
                       • fuels (for example, gasoline, diesel fuel, and kero-jet fuel); 
                       • candy and confections; see Tax Bulletin Candy and Confectionary 
                         (TB-ST-103); 
                       • bottled water; see Tax Bulletin Beverages Sold by Food Stores, 
                         Beverage Centers, and Similar Establishments (TB-ST-65); 
                       • soda and beer; see Tax Bulletin Beverages Sold by Food Stores, 
                         Beverage Centers, and Similar Establishments (TB-ST-65); 
                       • cigarettes and tobacco products; 
                       • cosmetics and toiletries; see Tax Bulletin Drugstores and Pharmacies 
                         (TB-ST-193); 
                       • jewelry; 
                       • artistic items such as sketches, paintings, and photographs; 
                       • animals (for example, dogs, cats, or pet birds); 
                       • food and supplies for animals; 
                       • trees, shrubs, plants, and seeds; 
                       • coins and other monetary items, when purchased for purposes other 
                         than for use as a medium of exchange; 
                       • building materials; and 
                       • prepaid telephone calling cards. 
                       
                      * If you sell clothing or footwear, see Publication 718-C, Sales and Use Tax 
                      Rates On Clothing and Footwear  , for the most up-to-date information 
                      concerning the applicable tax rates to charge your customers. 
                       
 Services subject to  Only certain services are subject to tax. These services include: 
 tax                   
                       • Providing certain information services. (See TSB-M-10(7)S, Sales and 
                         Compensating Use Tax Treatment of Certain Information Services.) 
                       • Producing, fabricating, processing, printing or imprinting tangible 
                         personal property furnished by a customer who does not intend to 
                         resell it (for example, when an individual purchases lumber and has a 
                         cabinetmaker construct a bookcase for him or her). 
                       • Installing, maintaining, servicing, or repairing tangible personal 
                         property that is not held for sale by the purchaser of the service in the 
                         regular course of business (for example, servicing automobiles, 
                         repairing appliances, and repairing radio and television sets). 
                       • Storing tangible personal property that is not being held for sale (for 
                         example, storing a customer’s fur coat or providing storage for a 
                         customer’s household goods). 
                       • Renting safe deposit boxes. 
                       • Maintaining, servicing, or repairing real property, both inside and 
                         outside buildings (for example, cleaning, painting, gardening, 
                         snowplowing, trash removal, and general repairs). (See 
                         Publication 862, Sales and Use Tax Classifications  of Capital 
                         Improvements and Repairs to Real Property.) 
                       • Providing parking, garaging, or storage services for motor vehicles.* 
                         See Tax Bulletin Parking, Garaging, and Storing of Motor Vehicles 
                         (TB-ST-677). 

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                        • Interior decorating and design services. See Tax Bulletin Interior 
                          Decorating and Design Services (TB-ST-400). 
                        • Protective or detective services.  
                        • Entertainment or information services provided by means of telephone 
                          or telegraph (for example, 800 or 900 numbers). 
                        • Passenger transportation services with a driver, using limousines, 
                          black cars, and certain other motor vehicles (not including taxi and bus 
                          services). See TSB-M-09(2)S, Sales Tax Imposed on Certain 
                          Transportation Services, TSB-M-09(7)S, Additional Guidance Relating 
                          to the Sales Tax on Certain Transportation Services, and TSB-M-
                          13(2)S, Revised Policy Concerning the Application of the Sales Tax 
                          Exclusion for Certain Transportation Services Provided by an Affiliated 
                          Livery Vehicle in New York City. 
                        
                       * See TSB-M-08(14)S, Sales Tax Treatment of a Lease or Rental of Real 
                       Property for the Purpose of Parking, Garaging, or Storage of Motor 
                       Vehicles, for information on what constitutes a nontaxable lease of real 
                       property for parking. 
                        
 Sales by New York     The Tax Law provides a general exemption from sales tax for sales made 
 and United States     by the following: 
 governmental           
 entities and certain   • New York State or any of its agencies, instrumentalities, public 
 exempt                   corporations, or political subdivisions (New York governmental entity); 
 organizations          • the United States and its agencies and instrumentalities (United States 
                          governmental entity); 
                        • the United Nations or any international organization of which the 
                          United States is a member (United Nations or any international 
                          organization); 
                        • certain not-for-profit organizations, (such as religious, charitable, 
                          scientific, testing for public safety, literary or educational, or to foster 
                          national or international sports competition); 
                        • certain posts or organizations consisting of past or present members of 
                          the armed forces of the United States, and qualifying auxiliary units of 
                          such posts or organizations; and 
                        • certain Indian nations or tribes residing in New York. 
                        
                       However, there are some exceptions to this general rule for sales made by 
                       governmental entities and other exempt organizations. The sales described 
                       below, when made in the manner indicated by either a governmental entity 
                       or other exempt organization, are subject to sales and use taxes. This list is 
                       intended to provide general guidance and is not meant to be all-inclusive. If 
                       an exempt organization or governmental entity engages in sales of these 
                       types of products or services, it is required to register for sales tax purposes 
                       and obtain a valid Certificate of Authority prior to conducting business in 
                       New York State (see page 12). 
                        
                       Generally, sales and use taxes are imposed on: 
                        
                        • Tangible personal property or services sold by New York or United 
                          States governmental entities and certain sales by the United Nations 

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                    or any international organization, if the property or services are similar 
                    to those ordinarily sold by private persons. 
                    • Tangible personal property sold by any shop or store* operated by 
                    certain not-for-profit organizations; posts or organizations of past or 
                    present members of the armed forces, and qualifying auxiliary units; or 
                    certain Indian nations or tribes residing in New York (see below for a 
                    definition of shop or store). 
                    • Tangible personal property or services sold by a rural electric 
                    cooperative corporation, unless the purchaser is an exempt 
                    organization. 
                    • Food or drink sold in or by a restaurant or tavern operated by a 
                    New York governmental entity; certain not-for-profit organizations; 
                    posts or organizations of past or present members of the armed forces 
                    and qualifying auxiliary units; or certain Indian nations or tribes residing 
                    in New York. 
                    • Under certain circumstances, rent for hotel occupancy received by 
                    certain not-for-profit organizations. (See Publication 848, A Guide to 
                    Sales Tax for Hotel and Motel Operators, and Publication 843, A Guide 
                    to Sales Tax in New York State for Exempt Organizations.) 
                    • Certain motor vehicle parking, garaging, or storage services by certain 
                    not-for-profit organizations and posts or organizations of past or 
                    present members of the armed forces, and qualifying auxiliary units. 
                 
                * A shop or store is any place or establishment where goods are sold from 
                display with a degree of regularity, frequency, and continuity as well as any 
                place where sales are made through a temporary shop or store located on 
                the same premises as persons required to collect tax. 
                 
                Additionally, certain not-for-profit organizations; certain posts or 
                organizations of past or present members of the armed forces, and 
                qualifying auxiliary units; and certain Indian nations or tribes residing in 
                New York are required to collect state and local sales tax on their retail 
                sales of the following property and on their sales, other than for resale, of 
                the following services: 
                 
                    • any lease or rental of tangible personal property; 
                    • any utility service described in section 1105(b) of the Tax Law; 
                    • any service to real property described in section 1105(c)(5) of the Tax 
                    Law; and 
                    • any tangible personal property where the sale is made by remote 
                    means, such as by telephone, mail order (including email), over the 
                    Internet, or by other similar methods, provided the exempt organization 
                    makes such sales with a degree of regularity, frequency, or continuity. 
                 
                Also, certain not-for-profit organizations; posts or organizations of past or 
                present members of the armed forces, and qualifying auxiliary units; and 
                certain Indian nations or tribes residing in New York are also required to 
                collect state and local sales and use tax on certain remote and auction 
                sales. 
                 
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                       The sales described above are subject to tax whether or not they are made 
                       from a shop or store. For more information on sales by certain exempt 
                       organizations, see Publication 843, A Guide to Sales Tax in New York State 
                       for Exempt Organizations. Also, see TSB-M-08(5)S, Tax Law Amendments 
                       Related to Sales Made by Certain Sales Tax Exempt Organizations 
                       Effective September 1, 2008 , and TSB-M-08(15)S, Regulatory Amendments 
                       Related to Sales Made by Certain Sales Tax Exempt Organizations – 
                       Effective January 1, 2009. 
                        
                       For information on purchases made by governmental entities and certain 
                       exempt organizations, including Indian nations, tribes, and individual 
                       Indians, see Exempt purchasers on page 28. 
                        
         Additional sales taxes and fees you may be required to collect 

 Passenger car         An additional 6% statewide special tax is imposed on the short-term rental 
 rentals               of a passenger car rented within New York State, or rented outside 
                       New York State for use within New York State. Short-term rental means any 
                       rental for less than one year. This tax is in addition to the applicable state 
                       and local sales and use taxes. 
                        
                       Also, a special 5% supplemental tax is imposed on the short-term rental of 
                       passenger cars within the Metropolitan Commuter Transportation District 
                       (MCTD).* The special supplemental tax is in addition to the applicable state 
                       and local sales and use taxes and the statewide special tax. 
                        
                       See TSB-M-09(1)S, Increase in the Special Tax on the Rental of Passenger 
                       Cars, TSB-M-09(6)S, Special Supplemental Tax on the Rental of Passenger 
                       Cars Within the Metropolitan Commuter Transportation District and Tax 
                       Bulletin Sales Tax Rates, Additional Sales Taxes, and Fees (TB-ST-825) for 
                       more information. 
                        
                       * The MCTD consists of New York City (Bronx, Kings, New York, Queens, 
                       and Richmond counties) and the counties of Dutchess, Nassau, Orange, 
                       Putnam, Rockland, Suffolk, and Westchester. 
                        
 Entertainment or      An additional 5% sales tax is imposed on entertainment or information 
 information services  services provided by means of telephone that are received in an exclusively 
                       aural manner by the customer (for example, 800 or 900 numbers).  
                        
 Parking services      Charges for parking services in New York City are subject to a higher rate of 
 sold in New York      tax than most other sales. If you sell parking services in the borough of 
 City                  Manhattan (New York County), those sales are subject to the 8% additional 
                       parking tax imposed on parking services within that borough. See Tax 
                       Bulletin Parking Services in New York City (TB-ST-679). Under certain 
                       circumstances, an individual resident of Manhattan is exempt from this 8% 
                       tax. See TSB-M-85(14)S, 1985 Legislation - Chapter 330 Exemption From 
                       New York City Additional Tax On Parking, Garaging and Storing of Motor 
                       Vehicles, and TSB-M-96(13)S, Change In the New York City Parking Tax 
                        
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                      Exemption for Manhattan Residents, for more information about the 
                      exemption afforded Manhattan residents. 
                       
 Fee on hotel         An additional hotel unit fee in the amount of $1.50 per unit, per day, is 
 occupancy in         imposed on every occupancy of a unit in a hotel located within New York 
 New York City        City (Bronx, Kings, New York, Queens, and Richmond counties). See 
                      TSB-M-05(2)S, Fee on Hotel Occupancy in New York City, for additional 
                      information on this hotel unit fee. 
                       
                     Sales taxes imposed only within New York City 
                       
 New York City local  New York City local sales tax is also imposed on the following services 
 sales tax is also    performed or delivered in the city: 
 imposed on certain    
 services that are     • written or oral credit rating services; 
 performed or          • oral credit reporting services not delivered by telephone; 
 delivered within      • beautician, barbering, and hair restoring services; see Tax Bulletin 
 New York City           Beauty Salons, Barber Shops, and Hair Restoration Services 
                         (TB-ST-60); 
                       • tattooing services; see Tax Bulletin Tattooing and Permanent Make-up 
                         Services (TB-ST-855)   ; 
                       • tanning services; see Tax Bulletin Tanning Salons (TB-ST-853); 
                       • manicure and pedicure services; see Tax Bulletin Manicures and 
                         Pedicures (TB-ST-551); 
                       • electrolysis;  
                       • massage services; see Tax Bulletin Massage Services (TB-ST-554); 
                         and 
                       • the sale of the services of transporting, transmitting, distributing, or 
                         delivering gas or electricity, when purchased from someone other than 
                         the vendor of the gas or electricity. (See Important Notice, N-09-12, 
                         Sales Tax Law Changes in New York City – Effective August 1, 2009.) 
                       
                      Note:  The 4% New York State sales tax and the additional sales tax 
                      imposed by the state in the MCTD do not apply to the above referenced 
                      services. 
                       
                      In addition, the New York City local sales tax is imposed on every sale of 
                      services by: 
                       
                       • weight control and health salons;  
                       • gymnasiums; 
                       • Turkish and sauna baths and similar establishments; and  
                       • every charge for the use of such facilities. 
                       
                      Sales of these services are subject to the New York City local sales tax only 
                      when the services are performed or delivered to customers within New York 
                      City. See Tax Bulletins Miscellaneous Personal Services and Related Sales 
                      in New York City (TB-ST-575), Health and Fitness Clubs (TB-ST-329), 
                      New York City Health and Fitness Facilities (TB-ST-615), and Sales Tax 
                      Rates, Additional Sales Taxes and Fees (TB-ST-825). 

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                        However, charges for services rendered by the following are not subject to 
                        the local New York City sales tax: 
                         
                         • physicians; 
                         • osteopaths; 
                         • dentists; 
                         • nurses; 
                         • physiotherapists; 
                         • chiropractors; 
                         • podiatrists; 
                         • optometrists; and 
                         • ophthalmic dispensers; or  
                         • a person performing similar services licensed under title VIII of the 
                           New York State Education Law, and excluding those services when 
                           performed on pets and other animals. 
                         
                        Note:  The services described above are not subject to New York State 
                        sales tax, including the sales tax imposed in the Metropolitan Commuter 
                        Transportation District (MCTD), or to any local sales taxes imposed 
                        elsewhere in the state. However, those credit rating and credit reporting 
                        services that are subject to New York State and local sales tax as an 
                        information service are subject to the full rate of state and local tax imposed 
                        in each locality, including New York City. (For more information on the state 
                        sales tax imposed in the MCTD, see page 22.) 
                         
                       Sales taxes imposed by certain school districts 

 Certain school         Certain school districts in New York State impose sales tax on sales of the 
 districts in New York  following utilities and utility services: 
 State impose sales      
 tax on utilities and    • gas (including propane sold in containers of 100 pounds or more), 
 utility services          electricity, refrigeration, and steam; 
                         • gas, electric, refrigeration, and steam service; 
                         • telephony and telegraphy, except interstate and international telephony 
                           and telegraphy; 
                         • telephone and telegraph services, except interstate and international 
                           telephone and telegraph services, including telephone answering 
                           services and facsimile transmission services (not including prepaid 
                           telephone calling cards and services); and 
                         • mobile telecommunications services provided by a home service 
                           provider. 
                         
                        You can look up the combined tax rate on utilities or utility services sold in a 
                        school district by using our online Jurisdiction/Rate Lookup by Address 
                        service on the Tax Department’s website (at www.tax.ny.gov). You should 
                        also look at Publication 718-R, Local Sales and Use Tax Rates on 
                        Residential Energy  , and sales tax Schedule B and Schedule T, for a list of 
                        tax rates on utilities or utility services. 

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                        Calculating and stating the sales tax 

 Compute the            Generally, you compute the amount of sales tax due on a sale by applying 
 amount of sales tax    the combined state and local sales tax rate to the amount of the sale. The 
 due on a sale by       combined state and local sales tax rate consists of the state sales tax rate, 
 applying the           plus the applicable rate of sales tax imposed by the local jurisdiction (city, 
 combined state and     county, and school district). In addition, the state imposes an additional 
 local sales tax rate   sales tax in those localities that are within the Metropolitan Commuter 
 to the amount of the   Transportation District (MCTD). The MCTD is composed of New York City 
 sale                   (Bronx, Kings, New York, Queens, and Richmond counties), and the 
                        counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and 
                        Westchester.  
                         
                        The local tax rates vary by jurisdiction and by the items or services sold. For 
                        updated state and local sales tax rates, use our online Jurisdiction/Rate 
                        Lookup by Address service on our website (at www.tax.ny.gov). 
                        Publication 718, New York State Sales and Use Tax Rates by Jurisdiction, 
                        also lists the combined state and local rates and the proper jurisdiction and 
                        jurisdiction codes  .
                         
                        Note:  Do not use ZIP codes for identifying customer location. Postal zones 
                        usually do not coincide with political boundaries, and using ZIP codes for 
                        tax collection results in a high degree of inaccurate tax reporting. Instead, 
                        use our Sales Tax Jurisdiction and Rate Lookup service to determine the 
                        taxing jurisdiction, correct sales tax rate, and jurisdictional reporting code. 
                         
                        For additional information on sales tax rate publications, sales tax rates, and 
                        additional sales taxes and fees, see Tax Bulletins Sales Tax Rate 
                        Publications (TB-ST-820), and Sales Tax Rates, Additional Sales Taxes, 
                        and Fees (TB-ST-825). 
                         
 Special rules for the  New York State computes the state sales tax on qualified motor fuel and 
 calculation of sales   diesel motor fuel using a cents-per-gallon method. The cents-per-gallon 
 tax on the sale of     method also applies to the additional sales tax imposed on motor fuel and 
 qualified motor fuel   diesel motor fuel in the MCTD. Counties and cities can also elect to change 
 and diesel motor       their percentage rate sales tax to a cents-per-gallon method. For more 
 fuel                   information, see TSB-M-06(8)S, New Guidelines on the Sales of Motor Fuel 
                        and Diesel Motor Fuel Subject to the Cents-Per-Gallon Sales Tax, and 
                        Publication 718-F, Local Sales and Use Tax Rates on Qualified Motor Fuel, 
                        Highway Diesel Motor Fuel, and B20 Biodiesel. 
                         
 Sales tax exemption    Alternative fuels (CNG, hydrogen, E85) are exempt from state and local 
 and reductions for     sales tax, provided the fuel meets the definition of qualified fuel. Also, a 
 sales of certain       reduced rate of state and local sales tax applies to biodiesel (B20). 
 alternative fuels       
                        For additional information on these exemptions and reductions, see 
                        TSB-M-06(10)S, Sales Tax Exemptions and Reductions for Certain 
                        Alternative Fuels Beginning September 1, 2006, and TSB-M-12(10)S, 
                        Extension of Sales and Use Tax Exemptions for Alternative Fuels .
                         
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 The point of delivery  The point of delivery generally determines the sales tax rate that applies to 
 determines the         a transaction. Therefore, in computing the sales tax due, the rate to charge 
 combined tax rate to   is the total of the New York State tax rate in effect in the jurisdiction where 
 charge on a sale,      the delivery takes place, including the MCTD rate, if it applies, plus the local 
 except in the case of  rate in effect in that jurisdiction. For taxable sales subject to the same tax 
 motor vehicles and     rate, do not compute sales tax on each item separately. Instead, compute 
 certain boats          the tax on the total amount of the transaction. However, if separate sales 
                        are subject to different tax rates, then compute sales tax on each sale 
                        separately. 
                         
                        For assistance in determining the proper jurisdiction for tax collection, go to 
                        the department’s website at www.tax.ny.gov. Click on Find sales tax rates 
                        and then the link for Jurisdiction/Rate Lookup by Address service. 
                         
 Sales of motor         For sales or long-term leases of motor vehicles, trailers, and certain boats, 
 vehicles, trailers,    the point of delivery does not necessarily determine the rate of sales tax to 
 and certain boats to   charge. If the purchaser or lessee is an individual who is a resident of 
 individuals            New York State and the individual takes delivery of a motor vehicle, trailer, 
                        or boat within New York State, collect the sales tax at the rate in effect in 
                        the local jurisdiction where the individual is a resident. If the individual is a 
                        resident of New York State and has one or more residences outside of 
                        New York State, sales tax is to be collected at the rate in effect in the local 
                        jurisdiction where the individual is a New York State resident.  
                         
                        If an individual is a resident of more than one local taxing jurisdiction within 
                        New York State (whether or not the individual has one or more residences 
                        outside of New York State), sales tax is to be collected at the rate in effect 
                        in the local jurisdiction within New York State where the vehicle, trailer, or 
                        boat is principally used or garaged, or the boat is principally stored. The 
                        storage of a boat also includes mooring.  
                         
                        If the purchaser or lessee is an individual who is not a resident of New York 
                        State, you generally do not need to charge sales tax on the sale unless the 
                        vehicle, trailer or boat is registered in New York State. If the vehicle, trailer, 
                        or boat is registered in New York State, collect sales tax at the rate in effect 
                        in the jurisdiction where the vehicle, trailer, or boat is delivered to the 
                        purchaser. 
                         
                        For sales tax purposes, an individual is a resident of New York State and of 
                        a local taxing jurisdiction if the individual has a permanent place of abode 
                        within the jurisdiction. A permanent place of abode is a dwelling place 
                        maintained by an individual, or maintained on his or her behalf, whether or 
                        not owned by the individual, on other than a temporary or transient basis. 
                        The dwelling may be a house, apartment, flat, trailer, mobile home, 
                        houseboat, or any other premises. It also may be a room, including a room 
                        in a hotel, motel, boarding house, club, or a room at a residence hall 
                        operated by an educational, charitable, or other institution. A permanent 
                        place of abode also includes housing provided by the Armed Forces of the 
                        United States, whether the housing is located on or off a military base or 
                        reservation. 
                         
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                       An individual is also a resident of any local jurisdiction in which he or she 
                       carries out any employment, trade, business, or profession with respect to 
                       any property used in that trade, business, or profession. 
                        
 Sales of motor        If the purchaser or lessee is a business that is a resident of New York State 
 vehicles, trailers,   and the business takes delivery of a motor vehicle, trailer, or boat within 
 and certain boats to  New York State, collect sales tax at the combined state and local rate in 
 businesses            effect in the local jurisdiction where the business is a resident. If the 
                       business is a resident of New York State and has one or more residences 
                       outside of New York State, collect sales tax at the rate in effect in the local 
                       jurisdiction where the business is a New York State resident. 
                        
                       If a business is a resident of more than one taxing jurisdiction within 
                       New York State (whether or not it has one or more residences outside of 
                       New York State), sales tax is to be collected at the rate in effect in the local 
                       jurisdiction within New York State where the vehicle, trailer, or boat is 
                       principally used or garaged, or the boat is principally stored. The storage of 
                       a boat includes mooring it. 
                        
                       If the purchaser is a business that is not a resident of New York State, you 
                       generally do not need to charge sales tax on the sale unless the vehicle, 
                       trailer, or boat is registered in New York State. If the vehicle, trailer, or boat 
                       is registered in New York State, collect sales tax at the rate in effect in the 
                       jurisdiction where the vehicle, trailer, or boat is delivered to the purchaser. 
                       See Tax Bulletin Motor Vehicles, Vessels, and Trailers (TB-ST-590). 
                        
                       For sales tax purposes, a business is a resident of a New York State taxing 
                       jurisdiction if it carries on any employment, trade, profession, or maintains a 
                       place of business in the jurisdiction. The storage of property, including 
                       vehicles, trailers, and boats, constitutes maintaining a place of business. 
                       For additional information on collecting sales tax on sales of motor vehicles, 
                       see Publication 838, A Guide to Sales Tax for Automobile Dealers.  
                        
 Shipping and          If you charge your customer for shipping, handling, or delivery on the sale of 
 delivery charges      tangible personal property or tangible personal property on which a taxable 
                       service has been performed, include your charges for shipping, handling, or 
                       delivery when calculating the sales tax. However, if the customer arranges 
                       delivery by a third person and pays that person directly, the third person’s 
                       delivery charge is not taxable. See TSB-M-92(2)S, Delivery Charge Added 
                       to Taxable Receipt Effective September 1, 1991  , and Tax Bulletin Shipping 
                       and Delivery Charges (TB-ST-838). 
                        
                       Use the Jurisdiction/Rate Lookup by Address service on the department’s 
                       website to determine the proper locality and rate of tax. 
                        
 Separately stating    You are not required to give your customer a written or printed receipt. 
 the amount of sales   However, if you do give your customer any sales slip, invoice, receipt, or 
 tax versus the        other statement relating to a sales transaction, you must separately state 
 alternate unit price  the amount of sales tax due on the sales slip, invoice, receipt, or other 
 method                statement. See Part 3, Recordkeeping, and Tax Bulletin Recordkeeping 
                       Requirements for Sales Tax Vendors (TB-ST-770). 

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                       If you do not provide your customer with a written or printed receipt, you 
                       may use the alternate unit price method. The unit price is the price of the 
                       product, including sales tax, at which the sale is recorded. This price is 
                       either rung up on a cash register or accounted for in some other way. If you 
                       use this method, you must visibly display a sign telling the customer that the 
                       price he or she is paying includes sales tax. You must also distinguish 
                       products offered for sale by:  labeling them taxable or nontaxable; 
                       displaying taxable and nontaxable products separately; or by having a 
                       detailed list of taxable and nontaxable products available for the customer. 
                       You must keep accurate records distinguishing sales of taxable and 
                       nontaxable products. 
                        
                          Exempt sales 

 General               In general, if you only sell tangible personal property or services that are 
                       always exempt from sales tax (see below), you are not required to 
                       substantiate the exempt nature of the sale by receiving an exemption 
                       certificate from the purchaser. In addition, you may not be required to 
                       register and obtain a Certificate of Authority if the only sales that you make 
                       are of property and services that are always exempt from tax. 
                        
                       You should collect sales tax if you sell tangible personal property or a 
                       service that is normally taxable unless it is exempt because, for example, 
                       the purchaser is a sales tax exempt organization (certain nonprofit 
                       organizations), the purchaser intends to resell the property or service, or 
                       because the purchaser will use the property or service in an exempt 
                       manner. In these cases, you must receive a properly completed exemption 
                       certificate from the purchaser within 90 days of the date of sale. Please note 
                       that if you sell property or services that are normally taxable, even if you 
                       only make sales that are exempt or excluded from the imposition of sales 
                       tax, you must still be registered for sales tax purposes to issue and accept 
                       most New York State sales tax exemption certificates. For additional 
                       information on exemption certificates, see Exemption certificates on 
                       page 27 and Tax Bulletin Quick Reference Guide for Taxable and Exempt 
                       Property and Services (TB-ST-740). 
                        
 Exempt sales – No     Certain sales are always exempt from sales tax. Therefore, the purchaser is 
 exemption             not required to give you an exemption certificate to claim the exemption. 
 certificate required  These exemptions include, but are not limited to, sales of: 
                        
                        • Food, food products, certain beverages, dietary foods, and health 
                          supplements that are sold for human consumption. However, sales of 
                          candy, confections, soft drinks, alcoholic beverages, fruit drinks that 
                          contain less than 70% natural fruit juice, sandwiches, and heated 
                          foods are subject to sales tax. (See Tax Bulletins Listings of Taxable 
                          and Exempt Foods and Beverages Sold by Food Stores and Similar 
                          Establishments (TB-ST-525) and Dietary Foods and Health 
                          Supplements (TB-ST-160) for more information.) 
                         
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                       • Drugs and medicines intended for internal or external use, in the 
                         diagnosis, cure, mitigation, treatment, or prevention of illnesses or 
                         diseases in human beings. (See Publication 840, A Guide To Sales 
                         Tax For Drugstores and Pharmacies and Tax Bulletin Drugstores and 
                         Pharmacies (TB-ST-193).) 
                       • Clothing and footwear sold for less than $110 per item of clothing or 
                         per pair of shoes or other articles of footwear, and items used to make 
                         or repair exempt clothing, except that this exemption does not apply to 
                         any locally-imposed sales taxes unless the county or city imposing the 
                         sales tax has elected to also provide for the exemption. (See 
                         Publication 718-C, Sales and Use Tax Rates On Clothing and 
                         Footwear  .) For additional information on the state clothing exemption 
                         and a listing of exempt and taxable items, see TSB-M-06(6)S, Year-
                         Round Sales and Use Tax Exemption of Clothing, Footwear, and Items 
                         Used to Make or Repair Exempt Clothing, Effective April 1, 2006  , Tax 
                         Bulletins Lists of Exempt and Taxable Clothing, Footwear, and Items 
                         Used to Make or Repair Exempt Clothing (TB-ST-530), and Clothing 
                         and Footwear Exemption (TB-ST-122). 
                       • Medical equipment and supplies. However, medical equipment and 
                         supplies purchased for use in providing medical or similar services for 
                         compensation, such as services of physicians, hospitals, clinical 
                         laboratories, and ambulance companies, are subject to sales tax. (See 
                         Publication 822, Taxable Status of Medical Equipment and Supplies, 
                         Prosthetic Devices, and Related Items.) 
                       • Prosthetic aids and devices, hearing aids, and eyeglasses. 
                       • Services of laundering and dry cleaning, including carpet, drapery, 
                         etc., and rug cleaning services. 
                       • Newspapers, magazines, and other periodicals. 
                       • Tangible personal property sold by any gift shop located in a veterans’ 
                         home. (See TSB-M-06(15)S, Supplemental Summary of Recently 
                         Enacted Legislation Affecting Sales and Use Taxes Effective in 2006.) 
                       • Shoe repair. 
                       • Services of a licensed veterinarian constituting the practice of 
                         veterinary medicine. (See Publication 851, A Guide To Sales Tax in 
                         New York State for Veterinarians.) 
                       
                     Exempt sales – exemption certificate required 

 Certain purchases    If you are registered for sales tax purposes, you can make certain 
 can be made exempt   purchases exempt from sales tax that would otherwise be subject to sales 
 from sales tax, but  tax. The purchase of inventory that will be held for resale; qualifying 
 only with the        manufacturing equipment; packaging material; farm equipment; and certain 
 issuance of a        tractors, trailers, and semitrailers are examples of some of these types of 
 properly completed   purchases. For more complete information on various exemption 
 exemption            documents and their uses, see Tax Bulletin Quick Reference Guide for 
 document             Taxable and Exempt Property and Services (TB-ST-740). 

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                          Exemption certificates 

 You are not required    You are not required to collect sales tax from a purchaser who furnishes 
 to collect sales tax    you with a properly completed exemption certificate that you accept in good 
 from a purchaser        faith within 90 days of the delivery of property or rendition of a service. 
 who furnishes you       Accepting an exemption certificate in good faith means you have no prior 
 with a properly         knowledge that the document is falsely or fraudulently issued.  
 completed                
 exemption               Exemption certificates show why you did not collect tax on the sale to which 
 certificate within 90   the exemption certificate relates. For example, if you sell an otherwise 
 days, provided you      taxable product to a purchaser who is going to sell the product to someone 
 accept the certificate  else (i.e., a purchase for resale), you must collect sales tax unless the 
 in good faith           purchaser gives you Form ST-120, Resale Certificate  , within 90 days of 
                         your delivering the product to the purchaser. If you are audited by the Tax 
                         Department, the certificate will show the department that you did not collect 
                         sales tax because the purchaser certified that the transaction was not 
                         subject to tax. You must maintain a system that associates the certificate 
                         with the invoice or other evidence of the sale that you retain as part of your 
                         records. For a list of the various exemption certificates and their uses, see 
                         Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240). 
                          
 The purchaser must      If a transaction is exempt from sales tax, the purchaser must give you a 
 give you a properly     properly completed exemption certificate or other required documentation 
 completed               within 90 days of the delivery of the product or the rendition of the service 
 exemption               being purchased, or within 90 days of the hotel occupancy or payment of the 
 certificate within 90   amusement charge. If you accept a certificate after 90 days, both you and 
 days                    the purchaser share the burden of proving that the sale was exempt, and 
                         additional substantiation may be required. Also, both you and the purchaser 
                         may be liable for any tax, penalties, and interest due in the event the sale is 
                         determined to be taxable. 
                          
 Single transaction      The purchaser may give you an exemption certificate for a single sale. You 
 certificates            should attach this to your record of the sales transaction that you keep for 
                         your files, and keep it for at least three years after the due date of the sales 
                         tax return to which it relates, or the date the return was filed, if later. 
                          
 Blanket exemption       If applicable, the purchaser may instead give you a blanket exemption 
 certificates            certificate. This certificate may be used for the current sale as well as for 
                         subsequent sales made to that purchaser. A blanket exemption certificate 
                         may only be used by a purchaser to cover additional sales of the same 
                         general type. You must keep the blanket exemption certificate for three 
                         years after the due date of the most recent sales tax return to which it 
                         relates, or the date the most recent return was filed, if later. 
                          
 Electronic resale       A purchaser may issue an electronic version of a resale certificate or other 
 and exemption           exemption document to a seller provided the e-certificates meet all 
 documents                
                          
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                      departmental requirements as described in TSB-M-07(1)S, Electronic 
                      Resale and Exemption Documents for Sales and Compensating Use Taxes.  
                       
                      Note:  See page 32 for information on keeping adequate records. 
                       
                             Exempt purchasers 

 General              Sales to certain individuals and organizations are generally not subject to 
                      sales tax. Exempt purchasers include the United States and its agencies 
                      and instrumentalities, New York State, and its local governmental agencies 
                      and instrumentalities; the United Nations; diplomatic missions and 
                      diplomatic personnel; exempt organizations such as religious, charitable, 
                      scientific, and educational institutions that have qualified for exempt status 
                      under the Tax Law; certain posts or organizations consisting of past or 
                      present members of the armed forces of the United States; and certain 
                      Indian nations, tribes, or individuals. In each case, the purchaser must 
                      establish the right to the exemption by submitting the proper exemption 
                      certificate or other documentation to the vendor. (See page 17 for more 
                      information on sales by governmental entities and certain exempt 
                      organizations.) 
                       
 Federal, New York    The United States government; an agency or political subdivision of the 
 State, and local     United States government or New York State; or a New York State agency, 
 governmental         authority, or political subdivision must issue a governmental purchase order 
 agencies             or other appropriate proof that the sale is to the government to make a 
                      purchase without paying sales tax. Purchases by another state or country or 
                      by an agency or locality of another state or country are not exempt from tax. 
                       
 The United Nations   The United Nations, or any other international organization of which the 
 and similar          United States of America is a member, must issue the proper exemption 
 organizations        certificate to make a purchase without paying sales tax. 
                       
 Other exempt         Certain not-for-profit organizations (such as charitable, religious, scientific, 
 organizations        and educational organizations) must apply for exempt organization status 
                      for sales tax purposes. If the Tax Department grants this exempt 
                      organization status, these organizations must issue the proper exemption 
                      certificate.  
                       
 Posts or             Posts or organizations consisting of past or present members of the armed 
 organizations of     forces of the United States, and the qualifying auxiliary units of such posts 
 past or present      or organizations, establish their right to exemption through the issuance of 
 members of the       the proper exemption certificate. 
 United States armed 
 forces 
                       
 Indian nations,      The following Indian nations or tribes residing in New York State are exempt 
 tribes, and          organizations:  Cayuga, Oneida, Onondaga, Poospatuck, Saint Regis 
 individuals          Mohawk, Seneca, Shinnecock, Tonawanda Band of Senecas, and 
                      Tuscarora.  
                       
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                         These nations or tribes must provide the proper exemption certificate to 
                         make purchases without paying tax. 
                          
                         Sales to members of recognized Indian nations or tribes are not subject to 
                         sales tax, provided that the product is delivered to the member of the 
                         qualified nation or tribe on a qualified reservation. The qualified reservations 
                         are Allegany, Cattaraugus, Oil Spring, Oneida, Onondaga, Poospatuck, 
                         St. Regis Mohawk (Akwesasne), Shinnecock, Tonawanda, and Tuscarora. 
                          
                         Note:  Based on the Settlement Agreement by the Oneida Nation, the State 
                         of New York, the County of Madison and the County of Oneida dated May 
                         6, 2013, special rules now apply to a business operating on Oneida Nation 
                         land. For more information, see Important Notice-N-15-2, Notice to 
                         Businesses Operating on Oneida Nation Land.   
                          
                         See page 17 for information on sales by New York and United States 
                         governmental entities and certain exempt organizations. For more 
                         information, see Publication 843, A Guide to Sales Tax in New York State 
                         for Exempt Organizations, and Tax Bulletin Purchases and Sales by 
                         Government Entities (TB-ST-700). 
                          
                          Taxable business purchases 

 Be aware that you       If you are conducting business in New York State, you should be aware that 
 are required to pay     you must pay sales and use taxes in the following situations, whether or not 
 sales and use taxes     you are required to be registered for sales tax purposes: 
 in certain situations,   
 whether or not you       • You purchase taxable property (such as inventory) or services without 
 are required to be          paying taxes because you intend to resell them, but you later use the 
 registered for sales        property or services rather than reselling them. 
 tax purposes             • You purchase taxable property without paying taxes because you 
                             purchased them from a seller who is located outside of New York 
                             State, and you use that property in this state. 
                          • You purchase property or services outside of New York State where 
                             you pay the other state’s tax and use the property or services in 
                             New York State and the tax paid in the other state either does not 
                             qualify for credit against New York State and local taxes, or the tax 
                             paid to the other state qualifies for credit but the tax rate paid in the 
                             other state is less than the New York rate. 
                          • You purchase taxable gas and electricity without paying taxes because 
                             you purchased these commodities from a seller who is located outside 
                             New York State, and your business uses that gas and electricity in this 
                             state. 
                          • You send property out of New York State to have a taxable service 
                             performed on that property, do not pay tax, and then use that property 
                             in this state. 
                          • You purchase taxable property, services, hotel occupancy or pay 
                             admission charges in New York State without paying taxes. 
                          • You are a resident of a locality (county or city) in New York at the time 
                             of a purchase and you purchase taxable property in a locality in 

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                   New York State that has a lower rate of tax than the (locality) where 
                   you are a resident, and then you bring the property into the locality 
                   where you are a resident for sales tax purposes. 
                 • You are a resident of a locality (county or city) in New York at the time 
                   of a purchase and you have a taxable service performed on property in 
                   another locality in New York State that has a lower rate of tax than the 
                   (locality) where you are a resident, and then you bring the property into 
                   the locality where you are a resident for sales tax purposes. 
                 
                You generally compute the taxes due in the above situations on the sales 
                price paid. Apply the combined state and local sales tax rate to the selling 
                price (see Calculating and stating the sales tax on page 22). If you use the 
                property outside New York for more than six months prior to its use within 
                the state, you may calculate the tax due on the lower of the selling price or 
                fair market value of the property. If you purchase taxable property outside of 
                New York State, and use the property in the performance of a contract in 
                New York State for a period of less than six months, you may elect to 
                calculate the tax due on the lower of the fair rental value of the property for 
                the period of use within New York State or the sales price paid. You may 
                only use this calculation if you do not completely consume, or incorporate 
                the property into real property, in New York State.  
                 
                Under certain circumstances, there may be a credit available for the amount 
                of tax paid to another state or local jurisdiction of that state where your 
                business made the purchase. To determine whether the tax you paid to 
                another state or local jurisdiction in another state qualifies for credit against 
                New York State and local tax, see Tax Bulletin Reciprocal Credit for Sales 
                or Use Taxes Paid to Other Taxing Jurisdictions (TB-ST-765).  
                 
                You do not owe tax on property or services purchased outside New York 
                State before you became a resident of New York State or before you began 
                conducting business in New York State. This rule also applies to local sales 
                and use taxes. 
                 
                If you are registered, or required to be registered, with the Tax Department 
                for sales tax purposes, you must report and pay the sales and use taxes 
                incurred in connection with the taxable business purchases with your 
                business’s monthly, quarterly, or annual sales tax return. See page 33 for 
                information on filing your sales tax return.  
                 
                If your business is not registered or required to be registered, and is not a 
                sole proprietorship for federal tax purposes, you must pay any use tax due 
                by filing Form ST-130, Business Purchaser’s Report of Sales and Use Tax, 
                within 20 days from the date the property or service purchased is first 
                brought or delivered into New York State. If your business is a sole 
                proprietorship, or an estate or trust carrying on a business, trade, profession 
                or occupation in New York State, you may remit any use tax due with your 
                annual personal income tax return or by filing Form ST-140, Individual 
                Purchaser’s Annual Report of Sales and Use Tax.  An estate or trust 
                carrying on a business, trade, profession or occupation in New York State 
                may also remit any use tax due with its annual personal income tax return 

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                       or by filing Form ST-140.  
                        
                       For more information, see Tax Bulletins Use Tax for Businesses 
                       (TB-ST-910) and  Use Tax for Individuals (including Estates and Trusts) 
                       (TB-ST-913). 
                        
                        Part 3 – Recordkeeping 

                        Recordkeeping rules 

 Keep detailed         Keeping good records of your business operation will help you prepare 
 records of all sales  accurate and complete sales tax returns. Your returns must show gross 
 that are subject to   sales, taxable sales, purchases subject to sales or use tax, sales and use 
 sales or use tax      taxes due for the specific locality in which the items or services were 
                       delivered to your customers, other special taxes due, and other information. 
                        
                       See Tax Bulletin Recordkeeping Requirements for Sales Tax Vendors 
                       (TB-ST-770), for information about recordkeeping. 
                        
                       If you must register for sales tax purposes or if you voluntarily registered, 
                       you must keep detailed records of all sales and credits by jurisdiction. You 
                       must also maintain a method of associating an exempt sale to a particular 
                       purchaser with the exemption certificate you have on file for that sale or 
                       purchaser. If you issue exemption certificates when you make purchases, 
                       you must maintain records of these purchases that will substantiate the 
                       exempt use. 
                        
 Keep your records     You must keep your records for a minimum of three years from the due date 
 for a minimum of      of the return to which they relate, or the date the return is filed, if later. You 
 three years           must make the records available to the Tax Department upon request. 
                        
 Sales records         You must keep records of every sale, the amount paid, charged, or due on 
                       the transaction, and the sales tax that is due, if any. If you give a written 
                       receipt or other evidence of the sale to the purchaser, you must retain a 
                       copy of the receipt or other evidence. Otherwise, you must keep a daily 
                       record of all cash and credit sales in a daybook or similar journal. The 
                       records and supporting documentation you keep must provide sufficient 
                       detail to independently determine the taxable status of each transaction and 
                       the amount of tax due and collected. 
                        
 Delivery records      You must maintain records that substantiate points of delivery of the taxable 
                       products or services you sell if you delivered the product or service to a 
                       place other than your place of business. 
                        
                       If you sell taxable products or perform taxable services within New York 
                       State, you must charge and collect the state’s sales tax, including the state 
                       sales tax imposed in the MCTD, if applicable, plus the sales tax due to the 
                       locality where the property or service is delivered. This is true regardless of 
                       where you made the sale. However, as indicated on page 23, for sales of 
                       motor vehicles, trailers, and certain boats, the purchaser’s place of 

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                      residence generally controls the jurisdiction and rate of tax. 
                       
                      If you deliver products or perform services outside New York State, you do 
                      not need to charge New York State sales tax on the sale, regardless of 
                      where you made the sale. 
                       
                      Your invoices must clearly show the place of delivery. In addition, you 
                      should keep documentation such as delivery receipts, parcel post receipts, 
                      bills of lading, driver log books, or, a certified copy of the export declaration 
                      from the foreign freight forwarder for deliveries outside the United States. 
                       
                      A vendor’s charges for postage and handling to deliver taxable products or 
                      services are taxable, whether or not the vendor separately states the 
                      charges. See Tax Bulletin Delivery Rules for New York State Sales Tax 
                      (TB-ST-155) for information. 
                       
 Purchase records     You must keep detailed records of the nature, type, value, and amount of all 
                      business purchases. You must be able to determine any sales and use tax 
                      due on the basis of these records. To fulfill this requirement, you must keep 
                      the purchase invoices and prepare a daily, weekly, or monthly analysis. 
                       
 Maintaining records  If you maintain records in an electronic format, you may need to give the 
 electronically       Tax Department access to your equipment, computer programs, and 
                      records. You must make your electronic records available and accessible to 
                      the Tax Department, even if the records are also maintained in a hard copy 
                      format. For more information, see TSB-M-09(17)S, Amendments That 
                      Encourage Compliance with the Tax Law and Enhance the Tax 
                      Department’s Enforcement Ability. 
                       
 If you fail to keep  If you fail to keep adequate records and your business is audited by the Tax 
 adequate records,    Department, you could be held liable for substantial additional sales and 
 you could be liable  use taxes plus penalties and interest. The penalties include: 
 for substantial       
 additional tax,       • a penalty of up to $1,000 for the first quarter or part of a quarter, if you 
 penalties and            fail to make or maintain records or make them available to the Tax 
 interest                 Department; the penalty increases up to $5,000 for each subsequent 
                          quarter or part of a quarter that failure occurs;  
                       • a penalty of up to $1,000 for each quarter or part of a quarter, if you fail 
                          to make your records available in an auditable form; and 
                       • a penalty of up to $5,000 for each quarter or part of a quarter, if you 
                          maintain records in an electronic format and fail to make those records 
                          available and accessible to the Tax Department. 
                       
                      In addition, we may suspend or revoke your Certificate of Authority if you 
                      willfully fail to keep records and are convicted of a crime for that wilful 
                      failure. 
                       
                      See TSB-M-09(17)S, Amendments That Encourage Compliance with the 
                      Tax Law and Enhance the Tax Department’s Enforcement Ability, Tax 
                      Bulletin Sales and Use Tax Penalties (TB-ST-805), and Publication 900, 
                      Important Information for Business Owners, for additional information. 

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 Operators of parking   If you operate a parking facility in New York County (Manhattan), you have 
 facilities in          specific recordkeeping requirements. If you operate more than one parking 
 Manhattan              facility in Manhattan, you must keep separate records for each facility. For 
                        more information about these requirements, see TP-832, Special 
                        Requirements for Parking Facility Operators Located in New York County 
                        (Manhattan) Made Permanent.  
                         
                        Part 4 – Filing your sales tax return 

                                  Filing requirements 

 You must file a sales  As a registered sales tax vendor, you become a trustee for the state and 
 tax return on time     must file your sales and use tax returns on time. You also must remit any 
 even if you did not    tax due, including any tax that you have not yet collected from purchasers 
 have any taxable       on sales occurring during the filing period. You must file a sales and use tax 
 sales or business      return on time, even if you have no tax due during the filing period. Sales 
 purchases subject      tax returns are generally due no later than 20 days after the period to which 
 to use tax during the  they relate has ended.  
 filing period           
                        If you fail to file a sales tax return on time, we will calculate penalty and 
                        interest on the amount of tax due. We will also impose a penalty of at least 
                        $50, whether or not there is any tax due. Therefore, it is very important that 
                        you know the dates your returns must be filed, and that you remit any tax 
                        due on time. 
                         
                        Most registered sales tax vendors must Web File their returns and remit any 
                        sales tax due through the Online Services section of our website. For more 
                        information on Web filing, see Web filing and fill-in form, on page 34 and 
                        Tax Bulletin E-File Mandate for Businesses (TB-MU-210)    . Sales tax returns 
                        are also available on the Tax Department’s website or by contacting us 
                        directly. 
                         
                        For other sources of information regarding filing your sales tax return, see 
                        Tax Bulletins Filing a Final Sales Tax Return (TB-ST-265), Filing Period 
                        Indicators on Final Sales Tax Returns (TB-ST-270), and Filing 
                        Requirements for Sales and Use Tax Returns (TB-ST-275). 
                         
 Quarterly filing       When you first register, you will be classified as a quarterly filer unless you 
                        meet the limited conditions described under Annual filing, below. The 
                        quarterly returns cover the periods March 1 through May 31, June 1 through 
                        August 31, September 1 through November 30, and December 1 through 
                        February 28 (29 in a leap year). As a result, if you are a quarterly filer, you 
                        will be required to file quarterly returns by June 20, September 20, 
                        December 20, and March 20. 
                         
 Monthly filing         If the combined amount of your taxable sales and purchases subject to 
                        sales or use tax totals $300,000 or more in a quarter, you must file monthly 
                        (also referred to as part-quarterly) returns. The change to monthly filing 

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                         status is effective the first month following the quarter in which you exceed 
                         $300,000 in taxable transactions. Since we may not receive the quarterly 
                         return used as the basis for determining when you must begin filing monthly 
                         in time to change your filing status, it is your responsibility to notify the Tax 
                         Department of a change in your filing status, and file a return for the first 
                         month you are required to file monthly. You must continue to file monthly 
                         until your taxable sales and purchases are less than $300,000 for four 
                         consecutive quarters, at which time you may request a change to quarterly 
                         filing status. Monthly returns are due no later than 20 days after the month 
                         to which they apply. 
                          
                         You must also file monthly if you are a distributor of petroleum products and 
                         your sales of petroleum products total 100,000 gallons or more in a quarter. 
                         Since we may not receive the quarterly return used as the basis for 
                         determining when you must begin filing monthly in time to change your filing 
                         status, it is your responsibility to notify the Tax Department of the change 
                         and file a return for the first month you are required to file monthly. You 
                         must continue to file monthly until sales of petroleum products total less 
                         than 100,000 gallons in four consecutive quarters, at which time you may 
                         request a change to quarterly filing status. 
                          
 Annual filing           You will automatically be classified as an annual filer if, on your registration 
                         application, you: 
                          
                          • indicate that you do not expect to pay or collect any sales or use tax; 
                              and 
                          • describe your major business activity as a manufacturer or wholesaler 
                              that does not make retail sales. 
                          
                         In addition, the Tax Department may reclassify you as an annual filer if your 
                         total tax due for the four most recently filed quarterly periods (March through 
                         February) did not exceed $3,000. The Tax Department will notify you if you 
                         are reclassified as an annual filer. 
                          
                         The annual return covers the period March 1 through February 28 (29 in a 
                         leap year). Since sales tax returns are generally due within 20 days after the 
                         end of the reporting period, you must file an annual return by March 20 each 
                         year.  
                          
 Web filing and fill-in  Most vendors must Web File their sales tax returns and remit any sales tax 
 form                    due through the Online Services section of our website. You will need to 
                         create an Online Services business account before you can Web File.  
                          
                         As a sales tax vendor, you must Web File all authorized tax documents if 
                         you: 
                          
                          • prepare tax documents yourself without the assistance of a tax 
                              professional; 
                          • use a computer to prepare, document, or calculate the required filings; 
                              and 
                          • have broadband internet access.  

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                       You can enroll in our subscription service on our website to receive prompt 
                       notification of additional online services and electronic filing requirements as 
                       they become available.  
                        
                       For additional information on sales tax return filing requirements and 
                       options, visit the Tax Department’s website at www.tax.ny.gov or contact us 
                       directly. 
                        
 E-file mandate for    For returns filed on or after January 1, 2013, tax return preparers that meet 
 tax return preparers  either of the following conditions must file returns electronically: 
                        
                        • You or your firm prepared at least one authorized tax document for 
                        more than 10 different taxpayers during the previous calendar year 
                        and used tax software to prepare one or more of these tax documents. 
                        An authorized tax document includes any document that the Tax 
                        Department authorizes to be e-filed. 
                        • You were previously subject to the mandate. Once subject to the e-file 
                        mandate, you must continue to e-file all of your clients’ authorized tax 
                        documents in future years, regardless of the number of taxpayers you 
                        prepare returns for. 
                        
                       You’re a tax return preparer if you prepare any New York State return or 
                       claim for refund for compensation; or you receive compensation for returns 
                       or claims for refund prepared by people who you employ or engage.  
                       The e-file mandate applies to preparers located within and outside 
                       New York State. 
                        
                       For more information on the e-file mandate for tax return preparers, see Tax 
                       Bulletin E-File Mandate for Tax Return Preparers (TB-MU-220). 
                        
                       Completing your sales and use tax return 

 Your return is used   Your return and any required schedules are used to report your business 
 to report your        activity. Use them to report your gross sales, taxable sales, total non-
 business activity     taxable and exempt sales, purchases subject to use tax, and the total 
                       amount of the credits you are claiming on the return. You will also report the 
                       amount of your debit and credit card purchases. You must also report any 
                       special taxes you collected, or were required to collect, and compute the 
                       amount of sales and use tax you must remit with the return. 
                        
 Your return must      There are more than 80 separate jurisdictions (cities, counties, and school 
 report your           districts) statewide that impose local sales and use taxes. Your return and 
 businesses’           any required schedules are also used to report, for each of these 
 activities by         jurisdictions, the amounts of your sales, purchases, and credits by 
 jurisdiction          jurisdiction, and the amount of sales or use tax you owe for each 
                       jurisdiction. Therefore, you must know your gross sales and purchases; 
                       your taxable sales, purchases, and credits; the amount of tax you collected 
                       or were required to collect; and the jurisdiction in which these transactions 

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                     occurred. 
                      
 Tax remitted based  You may keep your books using the cash or accrual method of accounting. 
 on accrual method   No matter which recordkeeping method you choose to record your 
 of accounting       business’s transactions, you must report any sales made, and remit the 
                     applicable sales tax based on the accrual method of accounting. That is, 
                     you are required to report taxable sales and remit the tax due on the return 
                     covering the period in which the sales are made, regardless of whether your 
                     customer has paid you. 
                      
                     Note:  If you are a materialman (a supplier of building materials), see 
                     TSB-M-99(2)S, Materialmen - Pay When Paid, and Tax Bulletin 
                     Materialmen and the Pay-When-Paid Option (TB-ST-555), for information 
                     on the rules relating to when you may report and remit sales tax due using 
                     the cash method of accounting. 
                      
 Vendor collection   If you file your return on time and remit the amount of sales and use tax due 
 credit              on time, you may be entitled to claim a vendor collection credit on your 
                     return. The credit is equal to 5% of all taxes and fees collected and paid up 
                     to a maximum of $200 per quarter or longer period. For additional 
                     information, see Tax Bulletin Vendor Collection Credit (TB-ST-925). 
                      
 Remitting the tax   You must remit the tax due on or before the due date. If you file or pay late 
 due                 you will be subject to penalties and interest. In addition, we may impose a 
                     bad check or failed electronic withdrawal fee, if necessary. 
                     Certain large vendors must remit a portion of the state and local sales and 
                     use tax due for each period (including prepaid sales and use taxes due on 
                     motor fuel and diesel motor fuel) by EFT or certified check through the 
                     PrompTax payment program. We will notify you if you must make this type 
                     of payment. 
                      
                     Taxpayers may also voluntarily enroll to remit payments by EFT. For more 
                     information about the PrompTax program, visit our website at 
                     www.tax.ny.gov/bus/prompt. 
                      
 Mailing your sales  If you are not Web filing, send your sales tax return to the address shown 
 tax return          on the return. 
                      
                     In addition to the United States Postal Service, you may use certain private 
                     delivery services to assure that returns, payments, and other 
                     correspondence mailed on time will be considered filed on time. The private 
                     delivery services that we currently treat in the same manner as the 
                     United States Postal Service are listed in Publication 55, Designated Private 
                     Delivery Services. 
                      
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                     Part 5 – Show and entertainment promoters 

                                 Show promoters 

 A show promoter is     A show promoter includes any person who, directly or indirectly, grants the 
 a person who           use of a location to any person for the display for sale or for the sale of 
 organizes or           taxable products or services, at four or more shows, or who operates four or 
 operates a show by     more shows, during a calendar year. An example of a person who indirectly 
 granting the use of a  grants such use of a location is a person who leases space to a person who 
 location               intends to operate a show. Show promoters may own or lease parking lots, 
                        shopping malls, hotels, or any other place where shows are held. Show 
                        promoters can be individuals, business groups, trade associations, 
                        government agencies, or nonprofit organizations. 
                         
                        The term show includes flea markets, craft shows, antique shows, coin 
                        shows, stamp shows, comic book shows, fairs, and similar shows, whether  
                        the show is held regularly or is an occasional event, at which more than one 
                        vendor displays for sale, or makes sales of, taxable products or services. 
                         
 If you operate four    If a show promoter operates four or more shows during the calendar year, 
 or more shows          or leases property or space to others who, in the aggregate, operate four or 
 during the calendar    more shows, the show promoter must register before the fourth show and 
 year, or lease         get a permit from the Tax Department to operate a show. However, a show 
 property or space to   promoter who operates fewer than four shows during a calendar year does 
 others who operate     not have to register as a show promoter with the Tax Department for that 
 four or more shows,    year. 
 you must obtain a       
 show permit.           A show is a single event lasting up to seven consecutive days. On the 
                        eighth consecutive day, a second show automatically begins; on the 
                        fifteenth consecutive day, a third show begins; and so forth. If there is a 
                        break between show dates, a new show automatically starts on the first day 
                        after the break. If one or more days of a show are rained out, or canceled 
                        due to some other uncontrollable event, the break does not automatically 
                        start a new show. 
                         
 Filing for a show      A show promoter must file Form DTF-723, Application for Show Permit and 
 permit                 Notice of Show, at least 10 days before the fourth show opens. A show 
                        promoter needs only one permit for all shows held at the same location 
                        during the calendar year, but the shows must be listed individually on the 
                        application and on the back of the permit. A show promoter must file 
                        Form DTF-723 at least 10 days before each additional show that is held at a 
                        different location, or for each show that is not listed on the permit held by 
                        the promoter. 
                         
                        If the application for a show promoter’s permit is approved, the Tax 
                        Department will send the applicant a validated Form DTF-724, Permit to 
                        Operate a Show, within five days after receiving a properly completed 
                         
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                        application. The show promoter must display the validated permit at the 
                        main entrance to the show where everyone can see it. 
                         
 Responsibilities of a  A show promoter cannot let anyone at the show offer for sale, or make 
 show promoter          sales of, taxable products or services unless that person is registered as a 
                        vendor with the Tax Department. A show promoter must, in addition, make 
                        sure that each vendor who is making sales of products or services at the 
                        show clearly displays a valid Certificate of Authority. 
                         
 Record-keeping and     Starting with the fourth show, the show promoter must keep a record of 
 filing requirements    each vendor who participates in the show. These records must have the 
                        following information for each vendor:  name, address, New York State 
                        Certificate of Authority number (include vendors who claim that their sales 
                        are tax exempt), and amount of rent paid. You must keep these records for 
                        at least three years, unless the Tax Department gives you permission to 
                        destroy them earlier. 
                         
                        Show promoters must file Form DTF-727, Report of Show  , within 20 days 
                        after the end of the month in which a show is scheduled to be held. They 
                        must file a separate report for each show scheduled in that month. If the 
                        dates of a single show include the last day of one month and the first day of 
                        the next month, that show may be reported as though all dates of that show 
                        occurred in the second month. They must file this report even if a scheduled 
                        show was canceled. Form DTF-727-I, Instructions for Form DTF-727, 
                        Report of Show, gives detailed instructions on how to complete and file the 
                        report. 
                         
                        Show promoters must return Form DTF-724, Permit to Operate a Show, to 
                        the Tax Department along with Form DTF-727 that covers the last show 
                        date indicated on the permit.  
                         
                        When a show has more than one promoter, each promoter must file 
                        Form DTF-727, but only one promoter needs to submit a list of participating 
                        vendors (as shown on the back of Form DTF-727). However, each promoter 
                        is responsible for ensuring that we receive the list of participating vendors. 
                        Promoters who do not list participating vendors must include on their 
                        Form DTF-727, the names, addresses, and show permit numbers of the 
                        other promoters, and indicate which one is submitting the list of vendors. 
                         
                                Entertainment promoters 

 An entertainment       An entertainment promoter includes any person who, directly or indirectly, 
 promoter is an         owns or operates a facility or site where entertainment events are held, and 
 owner or operator of   who allows vendors to make sales of tangible personal property at an event. 
 a facility where       An entertainment promoter may also be someone who, directly or indirectly, 
 entertainment          rents, leases, or grants a vendor a license to use space at an entertainment 
 events are held        event or who has management responsibility with respect to those vendors 
                        making sales at such event. 
                         
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                       An entertainment event includes a concert, an athletic contest or exhibition 
                       (other than an amateur sports competition), and other similar forms of 
                       entertainment such as a musical show, dramatic play, rodeo, auto race, or a 
                       dog show, where: 
                        
                          • the persons performing at the event give less than four performances 
                          per week at the same location where the event occurs, or in the case 
                          of athletic contests or exhibitions between teams, no one team 
                          competes in more than four contests per year at that location; and 
                          • the facility or site where the event is held holds more than 1,000 
                          people. 
                        
                          Example:  A professional football team that plays 10 games a year at its 
                          home field hosts an out-of-state team to play a regular season game. 
                          This game is not considered to be an entertainment event because one 
                          of the teams competes at that location more than four times a year.   
                        
                       The term entertainment event does not include events such as high school 
                       or college athletic games, little league games, or festivals featuring amateur 
                       sporting events. In the case of concerts, plays, shows or other similar forms 
                       of entertainment, the term entertainment event does not include an event 
                       that consists of four or more performances by the same person or persons 
                       during a weekly period at the same facility or site.  
                        
 Filing for an         If sales of tangible personal property are going to be made at one or more 
 Entertainment         entertainment events, the promoter must file Form DTF-728, Application for 
 Promoter Certificate  Entertainment Promoter Certificate, at least 20 days before the first 
                       entertainment event is held. The Tax Department will, within 10 days after 
                       receiving a properly completed Form DTF-728, send the entertainment 
                       promoter a validated Form DTF-729, Entertainment Promoter Certificate  , if 
                       the application is approved. 
                        
                       An entertainment promoter only needs one certificate for all events held at 
                       the same location during the calendar year, and those events must be listed 
                       on the back of the permit. An entertainment promoter must file 
                       Form DTF-728 for each additional event held at a different location or for 
                       each event not listed on the original permit held by the promoter. 
                        
 Responsibilities of   An entertainment promoter cannot let anyone at the entertainment event 
 an entertainment      offer for sale, or make sales of, taxable tangible personal property unless 
 promoter              that person is a registered vendor. The entertainment promoter must also 
                       make sure that each vendor making sales of taxable products at the event 
                       displays a valid Certificate of Authority. Entertainment promoters who allow 
                       an unregistered vendor to make taxable sales of tangible personal property 
                       at an entertainment event may be subject to a substantial penalty. 
                        
                       An entertainment promoter must keep records of the name, address, and 
                       Certificate of Authority number of every vendor that the entertainment 
                       promoter authorizes to make taxable sales, at each entertainment event for 
                       which he or she is a promoter. 
                        
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                         An entertainment promoter must also file Form DTF-730, Report of 
                         Entertainment Event, within 20 days after the end of the month in which an 
                         entertainment event was scheduled to be held. The entertainment promoter 
                         must file this report even if an event was canceled. Form DTF-730-I, 
                         Instructions for Form DTF-730, provides detailed instructions on how to 
                         complete this report. 
                          
                         If the dates of a single event include the last day of one month and the first 
                         day of the next month, that event may be reported as though the entire 
                         event occurred in the second month. 
                          
                         The promoter must return Form DTF-729, Entertainment Promoter 
                         Certificate, to the Tax Department along with Form DTF-730 covering the 
                         last event date on the permit. 
                          
                         These requirements apply to entertainment promoters whether or not they 
                         charge admissions for the event, and whether or not any charges for 
                         admissions are taxable. If there is more than one entertainment promoter 
                         for any entertainment event, the requirement imposed on an entertainment 
                         promoter will be satisfied if any one promoter complies with the 
                         requirement. 
                          
        Part 6 - Purchasing or acquiring a business or its assets:  Caution 

                            Bulk sales transactions 

 If you are acquiring    If you are purchasing or otherwise acquiring some or all of the business 
 business assets of      assets of an existing business that is registered or required to be registered 
 an existing             for sales tax purposes, other than in the ordinary course of the seller’s 
 business, you may       business, you may be held personally liable for any sales taxes the seller 
 be held liable for any  owes the Tax Department. You may be held liable for the amount of the 
 sales taxes that are    seller’s unpaid sales and use taxes, up to the sales price or fair market 
 due to the Tax          value of the assets you purchased or acquired, whichever is greater. This 
 Department from the     applies whether the assets you are acquiring are tangible personal property, 
 seller/transferor       intangible property, or real property. 
                          
                         The sale, transfer, or assignment of business assets, in whole or in part, by 
                         a person required to be registered for sales tax purposes, other than in the 
                         seller’s ordinary course of business, is called a bulk sale transaction. 
                          
                         As the purchaser, transferee, or assignee (hereinafter, the purchaser) in a 
                         bulk sale transaction you will not be held liable for the seller’s unpaid sales 
                         and use tax liability if you comply with all of the requirements listed below. 
                          
                          • Notify the Tax Department – You must notify the Tax Department of 
                            the pending bulk sale transaction at least 10 days before paying for 
                            or taking possession of any business assets, whichever occurs 
                            first, by filing Form AU-196.10, Notification of Sale, Transfer, or 
                            Assignment in Bulk.  
                           
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   You must send Form AU-196.10 by registered mail, certified mail with 
   return receipt, or it can be hand delivered, to the address on the form.  
   The seller is supposed to advise you of this notification requirement, 
   but if the seller does not, that does not relieve you of liability for the 
                                                    th
   seller’s unpaid sales and use taxes. When the 10  day falls on a 
   Saturday, Sunday, or legal holiday in New York State, notice will be 
   considered timely if given on the next succeeding day which is not a 
   Saturday, Sunday, or legal holiday in New York State. 
   
  • Withhold consideration payable to the seller until authorized to release 
    it by the Tax Department – Within five business days of receiving Form 
    AU-196.10, the Tax Department will advise you as to whether the 
    seller has unpaid sales and use taxes. If the seller has unpaid sales or 
    use taxes or is selected for additional review or audit, the Tax 
    Department will send you Form AU-196.2, Notice of Claim to 
    Purchaser, which will require you to not release any consideration to 
    the seller until authorized by the department.  
  
 If the seller does not have any unpaid sales or use taxes and if an additional 
 review or audit is not necessary, the Tax Department will issue to you 
 Form AU-197.1, Purchaser’s and/or Escrow Agent’s Release-Bulk Sale.  
  
 If the department does not issue Form AU-196.2 to you within five business 
 days of the date it received your properly completed, timely filed AU-196.10, 
 or if the department incorrectly sends you Form AU-197.1, you will not be 
 held liable for any of the seller’s unpaid sales and use taxes under 
 section 1141(c) of the Tax Law, and you may pay the seller the full 
 purchase price. However, the assets you purchased from the seller may be 
 subject to the department’s liens if there are outstanding warrants or 
 judgments against the seller for past unpaid sales and use taxes. 
  
 For purposes of the department’s obligation to respond within five business 
 days, the date of receipt of Form AU-196.10 by the department will be the 
 date it was actually delivered to the Bulk Sales Unit of the Audit Division, but 
 no earlier than 10 days before the later of the scheduled date of sale or the 
 actual date of sale. The actual date of sale is deemed to be the earlier of the 
 date of payment or the date the purchaser takes possession of the assets 
 acquired. 
  
 If you receive Form AU-197.1 – You may pay the seller the full purchase 
 price. The department will not hold you liable for any of the seller’s unpaid 
 sales or use taxes, although the assets you purchased may be subject to 
 the department’s liens if there are outstanding warrants or judgments. 
  
 If you receive Form AU-196.2 – You will be advised not to pay the seller 
 until the Tax Department completes its review of the seller’s sales tax 
 account. Within 90 days of the receipt of Form AU-196.10, the department 
 must notify you (and the seller) of the actual amount of sales and use taxes 
 the seller owes for which you can be held liable on account of the bulk sale. 
 Upon receipt of Form AU-196.2, you may wish to consult a tax practitioner 
 about the best course of action to take.  

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                For more information on bulk sale transactions, see TSB-M-83(6)S, 
                Guidelines for Bulk Sales Transactions and Tax Bulletin Bulk Sales 
                (TB-ST-70). 

                You may owe sales and use taxes on the business assets purchased 

                In addition to your obligations and requirements with respect to sales and 
                use taxes accrued and determined to be due to the department from the 
                seller, you are also responsible for paying the sales and use taxes due, if 
                any, on your purchase of any tangible personal property as part of a bulk 
                sale transaction. Sales and use taxes are not imposed on the sale or use of 
                real property or intangible assets, such as goodwill. 

                Sales tax registration requirements – If, as the owner of a new business, 
                you will be making taxable sales, issuing or accepting certain exemption 
                certificates, charging rent for hotel or motel rooms or making admission 
                charges, you must register for sales tax purposes. See Tax Bulletin How to 
                Register for New York State Sales Tax (TB-ST-360). You will find step by 
                step instructions on how to apply for a Certificate of Authority using New 
                York Business Express.  

                The following examples illustrate some common transactions that are and 
                are not bulk sales: 

                Example:  Corporation A, a person required to collect sales tax, sells its 
                business assets to Corporation B. This sale is a bulk sale transaction. 

                Example:  Corporation A, a person required to collect sales tax, 
                transfers all of its business assets to Corporation B in exchange for 
                stock in Corporation B. The transfer of Corporation A’s assets to 
                Corporation B is a bulk sale transaction. 

                Example:  Corporation A purchases all the issued and outstanding 
                stock of Corporation B, a person required to collect sales tax. 
                Corporation A and Corporation B will continue to exist as separate legal 
                entities. Since the business assets of Corporation B have not been 
                transferred in connection with the sale of its stock, this is not a bulk sale 
                transaction. 

                Example:  Corporation A, a person required to collect sales tax, sells its 
                entire inventory which is purchased by Corporation B for resale. The 
                sale by Corporation A is a bulk sale transaction. 

                Example:  Mr. Smith, a person required to collect sales tax, makes a gift 
                of all of his business assets to another person. This transfer is a bulk 
                sale transaction. 

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                   Appendix – List of common sales tax forms  
                                                         
Business account updates: 
 
DTF-95 .......... Business Tax Account Update 
 
DTF-96 .......... Report of Address Change for Business Tax Accounts 
 
Sales tax returns: 
 
ST-100 .......... New York State and Local Quarterly Sales and Use Tax Return 
 
ST-101 .......... New York State and Local Annual Sales and Use Tax Return 
 
ST-809 .......... New York State and Local Sales and Use Tax Return for Part-Quarterly (Monthly) Filers 
 
ST-810 .......... New York State and Local Quarterly Sales and Use Tax Return for Part-Quarterly (Monthly) 
         Filers 
 
Sales tax exemption forms: 
 
ST-120 .......... Resale Certificate 
 
ST-120.1 ....... Contractor Exempt Purchase Certificate 
 
ST-121 .......... Exempt Use Certificate 
 
ST-124 .......... Certificate of Capital Improvement 
 
ST-125 .......... Farmers and Commercial Horse Boarding Operator’s Exemption Certificate 
 
Other sales tax forms: 
 
AU-11 ............ Application for Credit or Refund of Sales or Use Tax 
 
AU-12 ............ Application for Credit or Refund of Sales or Use Tax – Qualified Empire Zone 
         Enterprise (QEZE) 
 
AU-196.10 ..... Notification of Sale, Transfer, or Assignment in Bulk 
 
ST-130 .......... Business Purchaser’s Report of Sales and Use Tax 
 
ST-140 .......... Individual Purchaser’s Annual Report of Sales and Use Tax 
 
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Need help?
                                                     Telephone assistance
Visit our Web site at www.tax.ny.gov
• get information and manage your taxes online       Sales Tax Information Center:     (518) 485-2889
• check for new online services and features
                                                     To order forms and publications:  (518) 457-5431

Text Telephone (TTY) Hotline (for persons with       Persons with disabilities: In compliance with the 
hearing and speech disabilities using a TTY): If you Americans with Disabilities Act, we will ensure that our 
have access to a TTY, contact us at (518) 485-5082.  lobbies, offi ces, meeting rooms, and other facilities 
If you do not own a TTY, check with independent      are accessible to persons with disabilities. If you have 
living centers or community action programs to fi nd  questions about special accommodations for persons 
out where machines are available for public use.     with disabilities, call the information center.

NYS TAX DEPARTMENT
W A HARRIMAN CAMPUS
ALBANY NY 12227






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