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Taxable Business Purchases and Interstate Sales Agreement

Other Information about NY Sales Taxes

Taxable Business Purchases and NY, NJ and CT Sales Agreement

Taxable business purchases:

You are required to pay sales and use taxes if you purchase taxable property or services:

  • Without paying taxes because you intend to resell, but later decide to use the goods or services for personal use.
  • For property purchased from a vendor outside of NY State and you use the property in NY
  • You purchase gas or electricity from a vendor outside NY State but plan to use it within NY.
  • Send property outside NY state for servicing and the service is taxable. You need to pay the taxes if you did not pay the taxes and plan to use the property within NY state.
  • You purchase property in a NY county with lower taxes and use the property in a county with higher taxes.
  • Send property within a NY county with lower taxes for performance of a taxable service, and use the property in a county with higher sales tax.
  • You purchase taxable property and services (hotel, amusement charges) within NY state without paying sales tax.

Refer to Publication 750 for more details.

To determine whether tax paid in another state qualifies for NYS and Local credit, read Publication 39 “A Guide to New York State Reciprocal credits for Sales Taxes Paid to Other States”

In most instances, you do not owe taxes to NYS or Local taxes before becoming a resident, or before conducting business in New York State.

Read Publication 774 “Purchaser’s Obligation to Pay Sales and Use Taxes Directly to the Tax Department: Questions and Answers”, if the Tax department requires you to register for sales tax purposes.

New Jersey and Connecticut Sales Agreements

To simplify reporting schedules, New York State has an agreement with the States of New Jersey and Connecticut. Under this program New York vendors who do not have a place of business in NJ or Connecticut, but make taxable sales, can collect sales tax due.

Vendors who want to participate in this program need to register with their home state and the state they wish to collect sales tax. Vendors file one return to the home state with the breakdown on sales made in each state. The home state tax authority will remit the sales tax due to the other state(s).

For more information refer to:

Publication 32 “New Jersey/New York/Connecticut Interstate Sales and Use Tax Administration" or,
Publication 904 “Connecticut/New York State Cooperative Interstate Sales and Use Tax Administration”

 

Overview of the NY Sales Tax.

Management: