New York – Paying Sales and Use Taxes Directly to the Department

1/21/2013

SALT Report 2063 – The New York Department of Taxation and Finance updated their publication regarding a purchaser’s obligation to pay sales and use taxes directly to the Department.  The questions and answers in the publication apply to individuals, estates, trusts, and businesses located in New York State that are not required to be registered for New York State sales and use tax purposes.

If a businesses is located in New York State and sells taxable property or services they will be required to register with the Department and collect New York State and local taxes on all taxable items delivered to purchasers in the state, as well as for taxable services performed for purchasers in the state.

Businesses that collect taxes are required to separately state the amount of New York State and local sales tax collected on any receipt provided to a purchaser.  If a business does not collect New York State and local sales tax from the purchaser, it then becomes the purchaser’s responsibility to pay tax on any taxable transaction directly to the Tax Department.

The publication also addresses the following:

  • Deliveries into New York State without collection of sales tax
  • Purchases of property or services outside New York State for use in the state
  • Determining if you are a New York State resident for sales and use tax purposes
  • Determining if you are a resident of more than one locality for sales and use tax purposes
  • Examples of when you must pay tax directly to the Tax Department
  • Tangible personal property and services that are subject to sales and use taxes
  • Determining the amount of tax due
  • Tax rates
  • Special rules that apply to paying tax on motor vehicles, trailers, and vessels
  • When and how a corporation, partnership, LLC, or LLP is required to pay tax to the Tax Department
  • Credits for sales or use taxes paid to another state
  • Consequences for failure to pay taxes

For Further Information:

New York Department of Taxation – Purchaser’s Obligations to Pay Sales and Use Taxes Directly to the Tax Department