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 531 - Compensating Use Tax
Section 531.5 - Exemptions from the compensating use tax
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, §§ 1116 and 1118
(a) Since the compensating use tax complements and supplements the sales tax, no use tax will be imposed on the use of tangible personal property or services which have been or will be subject to the sales tax.
(b) The compensating use tax shall not be imposed on the use of:
Example 1:
A resident of Vermont purchased a television set in Vermont for his home in Vermont. At a later date he moves and takes up residency in New York State and uses the television set in this State. No use tax is due on the use of the television set in New York State.
Example 2:
A nonresident contractor with a business location in Vermont purchases tangible personal property in Vermont, which is incorporated in a building he is erecting in New York. He is required to pay a compensating use tax on his use of such property.
Example 3:
A manufacturer purchases leather for use in making shoes. When the leather becomes a component part of shoes which are for sale no use tax is due on the leather.
Example 4:
A newspaper publisher purchases 15 rolls of newsprint. When the newsprint is used in publishing the newspaper no use tax is due.
Example 5:
An organization exempt from the sales tax purchases lumber for its own use. No use tax is due.
Cross-reference:
See section 528.28 of this Title regarding exemption from tax for property donated by the manufacturer, processor or assembler of the property to an exempt organization.