Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, § 1131(1)
(a)
General.
Persons required to collect tax includes:
(1) Every person who makes sales of tangible
personal property as a vendor. See section
526.10 of this
Part.
(2) Every person who makes
sales of services which are taxed under section
1105(b) (c) or
(d) of the Tax Law.
(3) Every person who is the recipient of
admission charges, or charges of roof garden or a cabarets.
(4) Every person who is the recipient of dues
from members of a social or athletic club, organization or
association.
(5) Every person who
is the operator of a hotel.
(b)
Corporate officers and
employees.
(1) Every officer or
employee of a corporation, or of a dissolved corporation who is under a duty to
act for such corporation in complying with any requirement of the sales tax law
is a person required to collect tax.
(2) Whether an officer or employee of a
corporation is a person required to collect, truthfully account for, or pay
over the sales or use tax is to be determined in every case on the particular
facts involved. Generally, a person who is authorized to sign a corporation's
tax returns or who is responsible for maintaining the corporate books, or who
is responsible for the corporation's management, is under a duty to act.
Example 1:
A, an officer of X Corporation, signs the corporation's
sales tax returns. He is a "person required to collect tax" under section
1131(1).
Example 2:
M is an employee of S Corporation. His sole function with
the corporation is to sign checks. M owns no stock, has no authority to
determine which bills should be paid, has no authority to pay corporate bills
with cash, does not file returns and keeps no books or financial records of any
kind. M is not a "person required to collect tax" under section
1131(1) of the Tax Law as
he acts only in a ministerial capacity.
(3) Even though the persons described in this
paragraph are "persons required to collect tax", they are not personally
required to file returns for sales made in their corporate function where the
corporation files returns.
(c)
Partners.
(1) Every person who is a member of a
partnership is a person required to collect tax.
(2) Even though every partner is a "person
required to collect tax," each is not required to file returns for sales made
in his partnership function where the partnership as an entity files returns
for such sales.
