Go To Great Panes

Go To Great Panes, Kathryn Maloney ©2010

In New York your Certificate of Authority to Collect Sales Tax is needed before you can collect sales tax from in-state customers.

If you sell taxable items from New York State (NYS) should have one regardless of how little you sell, or whether or not you consider yourself just a hobby and not a business. You then remit the sales tax to NYS according to the schedule NYS gives you. It’s quarterly the first year, then the frequency is determined by the State based on how much you collected the first year.

Your Certificate of Authority to Collect Sales Tax is also what gives you the ability to purchase certain goods without paying sales tax. You can buy as a reseller, buy supplies and tools for use in producing tangible personal property that you will sell and buy some promotional materials without paying sales tax.

To purchase eligible items without paying sales tax, you need to fill out and present the proper form–see below. Most stores will keep a copy of your filled out form on hand if you will be buying from them regularly, others want a copy for each purchase.

You should never photocopy or otherwise reproduce your Certificate of Authority to Collect Sales Tax.

Resale Certificate: ST-120
If you are buying items that are for direct resale–you won’t be making anything from them, just selling them as-is.
PDF Instructions & Form ST-120:
http://www.tax.state.ny.us/pdf/1999/fillin/st/st120_699_fill_in.pdf

Exempt Use Certificate: ST-121
For purchasing “Machinery and equipment, parts, tools, and supplies used or consumed in the production of tangible personal property for sale”.
PDF Instructions & Form ST-121:
http://www.tax.state.ny.us/pdf/2009/fillin/st/st121_1009_fill_in.pdf

Certificate of Exemption for Purchases of Promotional Materials: ST-121.2
For promotional materials that are delivered by mail to customers or prospective customers, for which there is no charge to them.
PDF Instructions & Form ST-121.2:
http://www.tax.state.ny.us/pdf/2008/fillin/st/st121_2_1108_fill_in.pdf

More on NYS sales tax laws here:

New York Sales Tax–part 1
http://www.gotogreatpanes.com/blog/2008/01/17/new-york-sales-tax

New York Sales Tax–part 2
http://www.gotogreatpanes.com/blog/2008/02/24/new-york-sales-tax-continued

More NY State sales tax forms here:
http://www.tax.state.ny.us/forms/sales_cur_forms.htm

NYS Dept. of Revenue Forms and Publications Page:
http://www.tax.state.ny.us/forms/default.htm