New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 529 - Exempt Organizations
Section 529.5 - Diplomatic missions, diplomatic personnel and foreign government-owned enterprises and agencies

Universal Citation: 20 NY Comp Codes Rules and Regs § 529.5

Current through Register Vol. 46, No. 12, March 20, 2024

(a) Diplomatic missions. Permanent missions to the United Nations and foreign embassies and consulates are hereinafter referred to as diplomatic missions.

(b) Diplomatic personnel. Foreign embassy and consular officials, certain foreign embassy and consular employees, certain officers and employees of the United Nations, of international organizations and of permanent missions to the United Nations and certain employees of the Coordination Council for North American Affairs are hereinafter referred to as diplomatic personnel.

(c) Exemption federally determined. Diplomatic missions and diplomatic personnel are exempt from sales and use taxes when they are the purchaser, consumer or user of tangible personal property or services or when they are the occupant of hotel rooms or a patron at a place of amusement, club, roof garden, cabaret or similar place only to the extent of the exemption granted to them by the United States Department of State or pursuant to the authority granted to the American Institute in Taiwan.

(d) Nature and extent of exemption generally.

(1) Diplomatic missions and diplomatic personnel seeking exemption from State and local sales and use taxes should apply to the United States Department of State or, in the case of employees of the Coordination Council for North American Affairs, to the American Institute in Taiwan for the appropriate tax exemption card or other proper documentation evidencing their entitlement to and the extent of their exemption.

(2) The United States Department of State or the American Institute in Taiwan will issue the appropriate tax exemption card or other proper documentation to diplomatic missions and diplomatic personnel evidencing their entitlement to and the extent of their exemption.

(3) Tax exemption cards and other documentation evidencing entitlement to exemption issued to diplomatic missions and diplomatic personnel by the United States Department of State or the American Institute in Taiwan will specifically identify the extent of the exemption to be allowed. In general:

(i) A tax exemption card with a blue stripe will entitle the individual authorized thereon to exemption at time of purchase from all sales and use taxes, including hotel room taxes.

(ii) A tax exemption card with a green stripe will entitle the individual authorized thereupon to exemption at time of purchase from all sales and use taxes except hotel room taxes.

(iii) A tax exemption card with a red stripe will entitle the individual authorized thereon to exemption at time of purchase from sales and use taxes, including hotel room taxes, on purchases greater than the amount specified on the card (e.g., $50, $100, $150, $200, etc.).

(iv) Tax exemption cards may not be used by diplomatic missions and diplomatic personnel to purchase motor fuel or diesel motor fuel exempt from State and local sales and use taxes and motor fuel or diesel motor fuel tax at the time of purchase. Diplomatic missions and diplomatic personnel entitled to exemption from such taxes will receive exemption as described in subdivision (i) of this section.

(4) Diplomatic missions and diplomatic personnel who are not holders of tax exemption cards but who are otherwise determined by the United States Department of State or American Institute in Tiawan to be eligible for exemption from sales and use taxes imposed upon purchase of certain tangible personal property or services shall pay tax at the time of purchase and apply directly to the New York State Department of Taxation and Finance for a refund of such taxes paid. See subdivision (k) of this section concerning refund procedures.

(e) Purchases of tangible personal property and services by diplomatic missions and diplomatic personnel.

(1) Except as otherwise specifically provided in subdivision (i) of this section with respect to the purchase of motor fuel and diesel motor fuel and in subdivision (j) with respect to the purchase of utility services, the following rules are applicable to purchases of tangible personal property and services by diplomatic missions and diplomatic personnel.

(2) Diplomatic missions and diplomatic personnel must be the direct purchaser, occupant or patron of record and payer of record in order to exercise their entitlement to exemption from sales and use taxes. Direct purchaser, occupant or patron of record for purposes of this section means:

(i) the holder of a valid tax exemption card issued by the United States Department of State; or the American Institute in Taiwan and whose photograph appears on such card; or

(ii) the holder of such other proper documentation evidencing entitlement to exemption as provided by the United States Department of State if any such other documentation is so provided, and does not include any agent or employee of either such cardholder or holder of other proper documentation.

A diplomatic mission or the diplomatic personnel is the direct payer of record where payment is made by the holder of such card or other proper documentation or by the diplomatic mission to which the holder is attached, if any, or from the mission's funds, directly to the vendor.

(3) To make a purchase exempt from tax at the time of sale, the holder of a tax exemption card is required to:

(i) furnish the vendor with a properly completed certificate of sales tax exemption for diplomatic missions and personnel--single purchase certificate or, in the case of charge purchases by holders of a tax exemption card with a blue stripe or green stripe, a blanket purchase certificate (see subdivision [g] of this section regarding proper completion of such certificates);

(ii) display to the vendor at the time of purchase the tax exemption card so that the vendor may (a) record the following information on every invoice: name of purchaser entitled to exemption, tax exemption number on the tax exemption card of the purchaser, (b) verify that the tax exemption card has not expired, and (c) verify that a purchaser making a charge purchase holds a tax exemption card with a blue stripe or green stripe; and

(iii) sign the invoice at the time of purchase in the presence of the vendor.

Diplomatic missions and diplomatic personnel must personally issue a certificate of sales tax exemption for diplomatic missions and personnel to the vendor and must allow the vendor to compare the information on the issuer's tax exemption card to the information on the certificate presented. See section 532.4 of this Title regarding use of exemption certificates and purchaser's and vendor's liabilities.

(4)

(i) Diplomatic missions and diplomatic personnel who hold a tax exemption card with either a blue stripe or green stripe should furnish vendors with a certificate of sales tax exemption for diplomatic missions and personnel-- blanket purchase certificate covering the first and subsequent purchase transactions when the method of payment is by a charge either to an in-house charge account, such as an account established with a department store for its customers, or by a charge to a third-party charge account, such as that provided by a bank or financial services company. Even when a blanket purchase certificate is on file with the vendor, however, each purchase must meet the requirements of subparagraphs (3)(ii)-(iii) of this subdivision.

(ii) Possession of a tax exemption card with a green stripe shall not be the basis for exemption from the tax imposed by Tax Law, section 1105(e) on rent for occupancy of a room or rooms in a hotel, motel or similar establishment.

(iii) Holders of a tax exemption card with a red stripe may not issue a certificate of sales tax exemption for diplomatic missions and personnel-- blanket purchase certificate under any circumstances.

(iv) A certificate of sales tax exemption for diplomatic missions and personnel--blanket purchase certificate expires on the date that the issuer's tax exemption card expires.

(v) A holder of an expired tax exemption card must obtain a new tax exemption card before such holder may issue any new certificate of sales tax exemption for diplomatic missions and personnel to make purchases exempt from tax.

(5) If the method of payment is by cash or cash-equivalent, such as by check or travelers check, a separate, properly completed certificate of sales tax exemption for diplomatic missions and personnel--single purchase certificate must be given to the vendor for every purchase transaction, including cash or cash-equivalent purchase transactions by the holder of a tax exemption card with a green or blue stripe who has previously furnished the vendor with a blanket purchase certificate in accordance with paragraph (4) of this subdivision. However, see subdivision (j) of this section with regard to the use of a single purchase certificate for the purchase of utility services by holders of a tax exemption card with a red stripe or a diplomat identification card.

(f) Purchase transaction defined. For purposes of this section, a purchase transaction means a purchase in one calendar day of one or more items or services from a single vendor, whether or not the services are to be performed in a single day, and covered by a single invoice or bill. See section 532.4 of this Title regarding use of exemption certificates and purchaser's and vendor's liabilities.

(g) Proper completion and use of exemption certificates.

(1) The certificate of sales tax exemption for diplomatic missions and personnel is properly completed when it includes the:

(i) name of the mission;

(ii) name of the authorized individual;

(iii) tax exemption number on the tax exemption card;

(iv) expiration date of tax exemption card;

(v) type of tax exemption card issued by the United States Department of State or American Institute in Taiwan (blue stripe, green stripe or red stripe with dollar restriction);

(vi) signature of issuer;

(vii) date prepared;

(viii) amount of purchase, if a single purchase certificate; and

(ix) vendors name.

(2) Certificates of sales tax exemption for diplomatic missions and personnel may not be used to purchase motor fuel or diesel motor fuel exempt from taxes, regardless of the type of tax exemption card held by the diplomatic mission or personnel. See subdivision (i) of this section for special provisions related to purchases of motor fuel and diesel motor fuel.

(h) Vendor requirements.

(1) A vendor may not make sales exempt from tax to diplomatic missions or diplomatic personnel unless (i) the purchaser displays a valid tax exemption card, issues to the vendor a properly completed certificate of sales tax exemption for diplomatic missions and personnel and signs the invoice at the time of sale in the presence of the vendor; and (ii) the vendor at the time of sale records on each invoice the name and address of the purchaser entitled to exemption, tax exemption number of the purchaser, and date of sale and verifies that the purchaser is the same individual whose photograph appears on the tax exemption card and that the tax exemption card has not expired. In addition to the foregoing, a vendor may not make charge sales exempt from tax to diplomatic missions and personnel unless the purchaser displays a valid tax exemption card with a blue or green stripe.

(2) A vendor must receive a separate certificate of sales tax exemption for diplomatic missions and personnel--single purchase certificate for every cash or cash-equivalent purchase transaction, even if the diplomatic mission or diplomatic personnel holds a tax exemption card with a green or blue stripe and such mission or person has previously issued a certificate of sales tax exemption for diplomatic missions and personnel--blanket purchase certificate to that vendor.

(3) At the time of accepting a certificate of sales tax exemption for diplomatic missions and personnel, each vendor must, for verification purposes, (i) compare the photograph on the tax exemption card of the issuer of the certificate to the individual presenting such certificate, and find them to be the same and (ii) check the expiration date on the tax exemption card. If the vendor finds from such comparison that the individual presenting the certificate is not the person whose photograph appears on the tax exemption card, or if the vendor finds that the tax exemption card has expired, the vendor should not accept the certificate or make sales exempt from tax to such person.

(4) Each vendor accepting a certificate of sales tax exemption for diplomatic missions and personnel must, for verification purposes, maintain a method of associating sales made to diplomatic missions and diplomatic personnel with the certificate of sales tax exemption for diplomatic missions and personnel furnished to the vendor concerning such sales.

(5) Each vendor making a sale to diplomatic missions or diplomatic personnel exempt from tax pursuant to this section must retain, for the full period required by section 533.2 of this Title, a copy of the invoice, sales slip, statement and any other original sales document as well as the exemption certificate issued by the purchaser to verify all transactions claimed exempt, including sales where the method of payment is by charge to a third-party charge account, such as that provided by a bank or other financial services company.

(6) Vendors have the same obligations to retain records relating to sales to diplomatic missions and diplomatic personnel as they do with regard to other tax exempt sales. See Part 533 of this Title with regard to vendor's obligations.

(i) Retail purchases and sales of motor fuel and diesel motor fuel.

(1)

(i) Diplomatic missions and diplomatic personnel may not purchase motor fuel or diesel motor fuel exempt from tax at the retail level at the time of sale regardless of the type of tax exemption card held by such mission or person. Vendors of motor fuel or diesel motor fuel may not sell motor fuel or diesel motor fuel to diplomatic missions or personnel exempt from the taxes on such fuels at the time of sale.

(ii) In order for diplomatic missions and diplomatic personnel to receive exemption from the taxes imposed on the retail purchase of motor fuel or diesel motor fuel, (a) the United States Department of State or American Institute in Taiwan must certify to a major oil company which issues credit cards that the diplomatic mission or personnel is exempt from sales and motor fuel or diesel motor fuel taxes and (b) the diplomatic mission or personnel must obtain a credit card from such an oil company and purchase the motor fuel or diesel motor fuel with such credit card. Retail purchases of motor fuel and diesel motor fuel charged to such authorized credit cards will be billed to such diplomatic missions and diplomatic personnel exclusive of sales and use taxes and motor fuel or diesel motor fuel tax as the case may be.

(iii) Notwithstanding any other provision in this Part, no tax exemption shall be provided nor shall a refund be granted where diplomatic missions or diplomatic personnel purchase motor fuel or diesel motor fuel by any means other than through the use of an authorized oil company credit card in accordance with this subdivision.

(iv) Diplomatic missions and diplomatic personnel purchasing tangible personal property other than motor fuel or diesel motor fuel, such as tires, batteries, oil, windshield washer fluid or antifreeze or services such as repairs, from a vendor of such fuels must comply with all provisions of this section with respect to the purchase of tangible personal property in order to make such purchases exempt from tax, whether such purchase is made with an authorized oil company credit card or otherwise.

(2)

(i) Vendors which are issuers of oil company credit cards may, in agreement with the United States Department of State or the American Institute in Taiwan, issue authorized credit cards to diplomatic missions and diplomatic personnel, open credit card accounts for such missions and personnel, sell motor fuel or diesel motor fuel to such credit card accountholders, and bill such missions and personnel exclusive of the sales and motor fuel or diesel motor fuel taxes imposed on such purchases through such credit cards. Such vendors shall be entitled to a refund or credit of such taxes in the amount (a) which they have reimbursed directly or indirectly the retail vendor of such fuel or (b) for which they themselves may be liable to remit directly to the Department of Taxation and Finance.

(ii) Such refunds or credits shall otherwise be taken or allowed in accordance with the provisions of Part 560 of this Title.

(iii) Vendors which sell motor fuel or diesel motor fuel shall maintain records so as to verify the amounts of refunds and credits for sales and motor fuel or diesel motor fuel tax claimed and in accordance with the requirements of paragraph (h)(6) of this section and Part 533 of this Title.

(3)

(i) The following provisions of this section do not apply to purchases of motor fuel and diesel motor fuel made in accordance with this subdivision: subparagraphs (e)(13)(i)-(ii), the concluding undesignated paragraph of such paragraph (3); subparagraphs (e)(4)(i), (ii) and (iv); paragraph (e)(5) and paragraphs (h)(1)-(5) of this section.

(ii) The other provisions of this section are applicable to purchases of motor fuel and diesel motor fuel to the extent not inconsistent with this subdivision.

(j) Utility services.

(1) Diplomatic missions and diplomatic personnel which have been duly accredited by the United States Department of State shall be exempt from the tax imposed by subdivision (b) of section 1105 of the Tax Law upon certain utility services in accordance with the provisions of this subdivision and the other provisions of this section not inconsistent with this subdivision. The Department of State will furnish a list of such duly accredited diplomatic missions and personnel to providers of utility services and to the Department of Taxation and Finance.

(2)

(i) Diplomatic missions and personnel, to establish the tax exempt status of their account with a provider of utility services, must display to the provider of such service a valid tax exemption card of a diplomatic identification card issued by the United States Department of State Office of Protocol. Holders of a tax exemption card with a blue stripe or green strip should also furnish such vendors a certificate of sales tax exemption for diplomatic missions and personnel--blanket purchase certificate. Holders of either a tax exemption card with a red stripe or of a diplomat identification card should also furnish such vendors a certificate of sales tax exemption for diplomatic missions and personnel--single purchase certificate, which shall be treated as a blanket purchase certificate for purposes of this subdivision only.

(ii) The holder of a tax exemption card with a red stripe is exempt from payment of the tax imposed upon utility services regardless of any monetary restrictions noted on said card and regardless of the amount of any single purchase transaction of utility services.

(3)

(i) The provisions of subparagraphs (e)(4)(i), (ii) and (iv) and paragraph (e)(5) of this section are not applicable to purchases of utility services.

(ii) A certificate of sales tax exemption for diplomatic missions and personnel issued by the holder of a tax exemption card with a red stripe or of a diplomat identification card for the purchase of utility services may be accepted by the vendor of the utility services as a blanket purchase certificate regardless of whether payment for such services is by cash or cash-equivalent or otherwise.

(iii) Vendors of utility services, in order to accord exempt status to diplomatic missions and personnel for the purchase of utility services, must verify (a) that the purchaser's name has been furnished to the vendor on a list of duly accredited diplomatic missions and personnel provided by the United States Department of State or the Department of Taxation and Finance and (b) that the purchaser is an authorized holder of a tax exemption card or a diplomat identification card which has not expired as of the date of such diplomatic mission or diplomatic personnel opens an account and initiates purchase of such services. Once and account has been properly established as exempt from tax, the provider of utility services may continue to provide such service exempt from tax on its periodic billings to such diplomatic missions and diplomatic personnel until notified in writing by the account holder, the United States Department of State, the American Institute in Taiwan or the Department of Taxation and Finance that the diplomatic mission or personnel is no longer entitled to such exemption.

(4) Diplomatic missions and diplomatic personnel which have been duly accredited by the United States Department of State to be exempt from the tax on utility services but whose name has not yet been furnished by such Department to the provider of utility services shall be entitled to a refund of taxes paid to such provider from the time of such accreditation upon proper application to the New York State Department of Taxation and Finance. Any such application for refund should be accompanied by a copy of the tax exemption card or diplomat identification card issued by the United States Department of State evidencing entitlement to exemption or refund. See subdivision (k) of this section regarding refund procedures.

(k) Refund procedures. Diplomatic missions and diplomatic personnel which have been issued documentation evidencing entitlement to exemption other than a tax exemtion card or diplomat identification card on certain purchases must pay the tax to the vendor at the time of purchase and apply directly to the Department of Taxation and Finance for a refund of such taxes paid. Diplomatic missions and personnel entitled to exemption at the time of purchase but who pay tax erroneously may also apply to the department for refund of such taxes paid in error. Any such application for refund should be accompanied by a copy of the tax exemption card, diplomat identification card or other documentation issued by the United States Department of State or American Institute in Taiwan evidencing entitlement to exemption or authorizing such refund of tax paid upon particular purchase transactions, together with copies of pertinent sales documents to verify the transaction and amount of tax paid. See Part 534 of this Title concerning refunds.

(l) Nondiplomatic activities. Any diplomatic missions and diplomatic personnel engaged in a trade, business, occupation or profession beyond their diplomatic activities are subject to tax in the same manner as any other person engaged in a trade, business, occupation or profession within this State with respect to such activities.

(m) Foreign government-owned enterprises and agencies.

(1) Foreign government-owned enterprises and agencies are not exempt from sales and use taxes or motor fuel and diesel motor fuel taxes unless so determined by the United States Department of State or pursuant to the authority granted to the American Institute in Taiwan. Where foreign government-owned enterprises and agencies are determined exempt from tax, the provisions of this section shall apply as far as such provisions can be made applicable to such foreign government-owned enteprises and agencies and the vendors from whom they make purchases with such modifications as are necessary in order to adapt such language to such enterprises, agencies and vendors.

(2) However, unless otherwise prohibited by the United State Department of State, such enterprises and agencies are entitled to the other exemptions and exclusions generally provided in the Tax Law.

Example 1:A foreign government tourist or travel office which furnishes in formation, booklets, pamphlets, etc., about its country and/or acts as a full service travel agency (booking reservations on transportation and accommodations) is not exempt from sales and use taxes, unless so determined by the United States Department of State.

Example 2:A foreign government-owned steamship line or airline is generally not exempt from the sales and use taxes on its purchases, unless so determined by the United States Department of State, but may otherwise qualify for the exemptions for commercial vessels and commercial airlines provided for by section 1115 of the Sales Tax Law.

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