Current through Register Vol. 46, No. 12, March 20, 2024
(a)
Except for persons who are vendors solely by reason of paragraph (5), (6) or
(7) of subdivision (a) of section
526.10 of this Title, any person
required to register under section 1134 of the Tax Law and Part 533 of this
Title, must submit a certificate of registration at least 20 days before the
earliest of:
(1) commencing
business;
(2) opening a new place
of business; or
(3) taking
possession of, or making payment for, business assets transferred in a bulk
sale.
A business is commenced or a new place of business is
opened when sales are made to customers, rent is received for hotel
occupancies, or amusement charges are received from patrons. A certificate of
registration must be filed at least 20 days before such date, but may be filed
earlier. Persons intending to make sales to others may wish to file earlier, so
that they may be issued a certificate of authority which will authorize the
purchase of their inventory without payment of tax.
(b) If more than one place of business is
maintained, a certificate of registration must be filed for the principal place
of business together with a schedule of business locations for each additional
place of business making sales within New York State. A certificate of
authority will be issued for each additional business location. Each
certificate of authority shall state the place of business (normally, the
address) to which it is applicable.
(c)
(1) Any
person who is a vendor solely by reason of section
526.10(a)(5) of
this Title, must submit a certificate of registration within 30 days after the
first day of the quarterly sales tax reporting period, which period immediately
follows the four consecutive quarterly sales tax reporting periods during which
the cumulative total number of occasions such person came into the State to
deliver property or services exceeded 12. (Quarterly sales tax reporting
periods end on the last day of February, May, August and November.) However, in
accordance with section 1131(1) of the Tax Law, such registrant shall not be a
"person required to collect tax" until 20 days after the date such registrant
is required to submit its registration certificate.
(2) Accordingly, a person who first qualifies
as a vendor solely by reason of section
516.10(a)(5) of
this Title on:
(i) December 1st, must submit a
certificate of registration no later than December 31st, and shall be a "person
required to collect tax" on January 20th, of the next year;
(ii) March 1st, must submit a certificate of
registration no later than March 31st, and shall be a "person required to
collect tax" on April 20th;
(iii)
June 1st, must submit a certificate of registration no later than July 1st, and
shall be a "person required to collect tax" on July 21st;
(iv) September 1st, must submit a certificate
of registration no later than October 1st and shall be a "person required to
collect tax" on October 21st.
Example:
A furniture reupholsterer located in New Jersey offers free
pick-up and delivery service to its customers. Between May 15, 1989 and June 5,
1990, the reupholsterer came into New York to deliver furniture, reupholstered
at its New Jersey factory, on 16 occasions as follows:
| Job No. |
Delivery Date |
Job No. |
Delivery Date |
| 1 |
May 15, 1989 |
9 |
September 5, 1989 |
| 2 |
May 15, 1989 |
10 |
September 15, 1989 |
| 3 |
May 19, 1989 |
11 |
October 5, 1989 |
| 4 |
May 22, 1989 |
12 |
October 13, 1989 |
| 5 |
June 5,1989 |
13 |
November 27, 1989 |
| 6 |
July 11, 1989 |
14 |
May 10, 1990 |
| 7 |
August 11, 1989 |
15 |
May 11, 1990 |
| 8 |
August 28, 1989 |
16 |
June 5, 1990 |
Since, as of December 1, 1989, the number of occasions the
reupholsterer came into New York to deliver its service during the immediately
preceding four quarterly sales tax reporting periods exceeded 12, the
reupholsterer is a vendor as of December 1, 1989. Therefore, the reupholsterer
must submit a certificate of registration by December 31, 1989, and in
accordance with section 1311(1) of the Tax Law, the reupholsterer will be
required to collect tax on all taxable services delivered in New York on or
after January 20, 1990.
(d)
(1) Any
person who is a vendor solely by reason of section
526.10(a)(6) of
this Title, must submit a certificate of registration within 30 days after the
first day of the quarterly sales tax reporting period, which period immediately
follows the four consecutive quarterly sales tax reporting periods during which
the cumulative total of such person's gross receipts from sales of property
delivered in this State exceeded $300,000 and the number of such sales exceeded
100. (Quarterly sales tax reporting periods end on the last day of February,
May, August and November.) However, in accordance with section 1131(1) of the
Tax Law, such registrant shall not be a "person required to collect tax" until
20 days after the date such registrant is required to submit its registration
certificate.
(2) Accordingly, a
person who first qualifies as a vendor solely by reason of section
526.10(a)(6) of
this Title on:
(i) December 1st, must submit a
certificate of registration no later than December 31st, and shall be a "person
required to collect tax" on January 20th, of the next year;
(ii) March 1st, must submit a certificate of
registration no later than March 31, and shall be a "person required to collect
tax" on April 20th;
(iii) June 1st,
must submit a certificate of registration no later than July 1st, and shall be
a "person required to collect tax" on July 21st;
(iv) September 1st, must submit a certificate
of registration no later than October 1st and shall be a "person required to
collect tax" on October 21st.
Example:
Company P, a mail order house located in Utah, solicits
sales in New York State only by way of its mail order catalog sent four times a
year directly to resident addresses in New York. All orders are filled in Utah
and sent via U.S. mail to New York. Company P began soliciting business in New
York in September 1989 and during the period September 1, 1989 through November
30, 1990, Company P had the following gross sales (summarized by sales tax
quarterly filing period) to customers in New York.
|
Gross Sales in New
York |
| Period |
Number of
Sales |
Dollar
Amount |
| 9/1/89 - 11/30/89 |
700 |
$ 42,000 |
| 12/1/89 - 2/28/90 |
1,300 |
$ 71,000 |
| 3/1/90 - 5/31/90 |
1,500 |
$ 81,000 |
| 6/1/90 - 8/31/90 |
1,800 |
$ 97,000 |
| 9/1/90 - 11/30/90 |
2,200 |
$114,000 |
Although Company P's number of sales of property delivered
in New York exceeded 100 during the four quarterly sales tax reporting periods
from September 1, 1989 through August 31, 1990, its dollar volume of sales for
this period was only $291,000. Accordingly, Company P is not presumed to be a
vendor for the quarter beginning September 1, 1990. However, since Company P's
number of sales delivered in New York for the period from December 1, 1989
through November 30, 1990 exceeded 100 and the gross receipts from these sales
exceeded $300,000, Company P is presumed to be a vendor as of December 1, 1990.
Therefore, Company P must submit a certificate of registration by December 31,
1990, and, in accordance with section 1131(1) of the Tax Law, Company P is
required to collect tax on all taxable sales made on or after January 20,
1991.
(e)
(1) Any
person who has filed a certificate of registration and obtained a certificate
of authority solely by reason of having made regular or systematic deliveries
of property and/or services in this State as described in section
526.10(a)(5) of
this Title, who can demonstrate to the satisfaction of the Commissioner that he
cannot reasonably be expected to effect such deliveries of property and/or
services on more than 12 occasions during the next succeeding four quarterly
sales tax reporting periods, may submit a written request to the commissioner
for the cancellation of its certificate of authority.
(2)
(i) The
request for the cancellation of the vendor's certificate of authority must
include the following:
(a) the business name
and address;
(b) the vendor
identification number;
(c) a
request for cancellation of the vendor's certificate of authority and a
statement clearly indicating why the vendor cannot reasonably be expected to
effect deliveries of property and/or services in this State as described in
section 526.10(a)(5) of
the Sales and Use Tax Regulations on more than 12 occasions during the next
succeeding four quarterly sales tax reporting periods; and
(d) whatever documentary evidence is
available to support the statement identified in clause (c) of
this subparagraph.
(ii)
The request for cancellation of the vendor's certificate of authority must be
filed with the Registration and Licensing Services Bureau of the Processing
Division, W.A. Harriman Campus, Albany, NY 12227 and must be signed by a
responsible owner, partner or officer.
(3)
(i) If
the Registration and Licensing Services Bureau consents to the cancellation of
the vendor's certificate of authority, it will notify the vendor in writing of
the effective date of such cancellation.
(a) A
vendor whose certificate of authority has been cancelled in accordance with
this subdivision must, within 20 days of the effective date of such
cancellation, file a final return and surrender its certificate of authority in
accordance with the provisions of Part 533 of this Title.
(b) A vendor whose certificate of authority
has been cancelled pursuant to this subdivision who subsequently becomes a
"person required to register" as described in section
539.2 of this Title must file a
certificate of registration in accordance with the provisions of such
section.
(ii) If the
Registration and Licensing Services Bureau does not consent to the cancellation
of the vendor's certificate of authority, it will notify the vendor of such
decision in writing.
Example:
Corporation A, located in New Jersey, has two stores. Store
No. 1 is in southern New Jersey and Store No. 2 is situated close to the New
York City metropolitan area. During the period September 1, 1988 through August
31, 1989, Store No. 2 regularly delivered taxable property into New York within
the meaning of section
526.10(a)(5) of
the Sales and Use Tax Regulations. Corporation A filed a certificate of
registration with the Tax Department and holds a valid certificate of
authority.
On July 1, 1990 Corporation A decided to close Store No. 2
effective August 31, 1990. Corporation A wrote a letter to the Registration and
Licensing Services Bureau and requested that its certificate of authority be
cancelled because it had closed its only store doing business in New York.
Corporation A included with its letter a certified copy of the resolution of
the board of directors of Corporation A closing Store No. 2. On the basis of
the submission made by Corporation A, written notification was sent to it by
the Registration and Licensing Services Bureau of the effective date of the
cancellation of its certificate of authority. Within 20 days after the
effective date of the cancellation of its certificate of authority, Corporation
A filed its final return and with it submitted payment of all taxes due as well
as its certificate of authority.
(f)
(1) Any
person who has filed a certificate of registration and obtained a certificate
of authority solely by reason of having regularly or systematically solicited
business in this State as described in section
526.10(a)(6) of
this Title who can demonstrate to the satisfaction of the commissioner that he
cannot reasonably be expected to have gross receipts in excess of $300,000 or
more than 100 sales of property delivered into New York over the next
succeeding four quarterly sales tax reporting periods, may submit a written
request to the Commissioner for the cancellation of its certificate of
authority.
(2)
(i) The request for the cancellation of the
vendor's certificate of authority must include the following:
(a) the business name and address;
(b) the vendor identification
number;
(c) a request for
cancellation of the vendor's certificate of authority and a statement clearly
indicating why the vendor cannot reasonably be expected to have gross receipts
in delivered into New York over the next succeeding four quarterly sales tax
reporting periods; and
(d) whatever
documentary evidence is available to support the statement identified in clause
(c) of this subparagraph.
(ii) The request for cancellation of the
vendor's certificate of authority must be filed with the registration and
Licensing Services Bureau of the Processing Division, W.A. Harriman Campus,
Albany, NY 12227 and must be signed by a responsible owner, partner or
officer.
(3)
(i) If the Registration and Licensing
Services Bureau consents to the cancellation of the vendor's certificate of
authority, it will notify the vendor in writing of the effective date of such
cancellation.
(a) A vendor whose certificate
of authority has been cancelled in accordance with this subdivision must,
within 20 days of the effective date of such cancellation, file a final return
and surrender its certificate of authority in accordance with the provisions of
Part 533 of this Title.
(b) A
vendor whose certificate of authority has been cancelled pursuant to this
subdivision who subsequently becomes a "person required to register" as
described in section
539.1 of this Title must file a
certificate of registration in accordance with the provisions of such
section.
(ii) If the
Registration and Licensing Services Bureau does not consent to the cancellation
of the vendor's certificate of authority, it will notify the vendor of such
decision in writing.
Example:
Company X, located in Ohio, is the exclusive manufacturer
and retailer of a unique product for which it holds a patent. Company X
solicits its sales only through advertisements placed in national technology
magazines. All orders are filled from Ohio and shipped via common carrier.
Although Company X sells products in New York besides its patented product, 90%
of its sales in New York are of the patented product. The other 10% of the
company's sales are of ancillary products which customers order from Company X
as a matter of convenience when placing their main order. These other products
are readily available from other suppliers.
During the period September 1, 1988 through August 31,
1989, Company X regularly solicited business in New York State as described in
section 526.10(a)(6) of
the Sales and Use Tax Regulations. Company X filed a certificate of
registration with the Tax Department and holds a valid certificate of
authority. During the period September 1, 1989 through August 31, 1990, Company
X had the following sales to customers in New York (summarized by quarterly
sales tax reporting period):
|
Gross Sales In New
York |
| Period |
Number of
Sales |
Dollar
Amount |
| 9/1/89 - 11/30/89 |
6,200 |
$810,000 |
| 12/1/89 - 2/28/90 |
600 |
$ 52,000 |
| 3/1/90 - 5/31/90 |
500 |
$ 43,000 |
| 6/1/90 - 8/31/90 |
400 |
$ 33,000 |
| Total (9/1/89 - 8/31/90) |
7,700 |
$938,000 |
Due to a technological breakthrough by one of its
competitors in January 1990, Company X's patented product was made obsolete and
demand for this product virtually disappeared. News of the demise of Company
X's product was cited in a technology magazine article featuring the product of
Company X's competitor.
Company X wrote a letter to the Registration and Licensing
Services Bureau and requested that its certificate of authority be cancelled
because of the change in the volume of business it expected to conduct in New
York State in the future. Company X included with its submission a copy of the
magazine article cited above as well as copies of relevant accounting records.
On the basis of the submission made by Company X, written notification was sent
to it by the Registration and Licensing Services Bureau of the effective date
of the cancellation of its certificate of authority. Within 20 days after the
effective date of the cancellation of its certificate of authority, Company X
filed its final return and with it submitted payment of all taxes due as well
as its certificate of authority.
(g)
(1) A
person who is a vendor solely by reason of section
526.10(a)(7) of
this Title must submit a certificate of registration within 30 days after the
first day on which tangible personal property in which such person retains an
ownership interest is brought into this State by the purchaser who;
(i) is or becomes a resident of this State,
or
(ii) uses the property in any
manner in carrying on any employment, trade, business or profession in this
State.
Example 1:
A resident of New York leases a motor vehicle on October 1,
1990 for two years from a non-New York corporation whose only place of business
is located outside of New York. The resident picks up the motor vehicle at the
lessor's place of business on October 1, 1990 and immediately returns to New
York State with the vehicle. Since the lessor is a vendor solely by reason of
section 526.10(a)(7) of
this Title, it is required to file a certificate of registration with the
department within 30 days after the day the property was brought into New York
State which in this case means, no later than October 31,
1990.
(2) Where a
purchaser of tangible personal property is not a resident of this State when
the property is first brought into this State, and such purchaser does not use
the property in any manner in carrying on any employment, trade, business or
profession in this State, but the purchaser subsequently becomes a resident of
this State or uses the property in the purchaser's employment, trade, business
or profession, the person who sold such property to the purchaser and who
retains an ownership interest in such property, is a vendor. Such vendor must
submit a certificate of registration within 30 days after the day on which the
purchaser becomes a resident of this State or uses the property in this State
in the purchaser's employment, trade, business or profession.
Example 2:
A non-New York company leases a motor vehicle to a
non-resident of New York State. The non-resident of New York uses the vehicle
in New York while on vacation. Six months later the non-resident moves to New
York State and becomes a resident, bringing the leased vehicle with him.
The non-New York company is a vendor by virtue of section
1101(b)(8)(i)(F) of the Tax Law and is required to submit a certificate of
registration within 30 days after the day on which the lessee became a resident
of New York, but not when the vehicle first entered the state six months
prior.
(h) The
applicant for a certificate of authority must submit the following information:
(1) business name (legal) and
address;
(2)
(i) name, social security number and home
address of the owner;
(ii) name,
social security number and home address of general partners in a partnership.
Include limited partners who are responsible for the day-to-day financial
operation of the business;
(iii)
name, social security number and home address of responsible persons of a
corporation or other entities (
e.g., president,
vice-president, secretary, treasurer, shareholder, fiduciary, trustee, etc).
Identify the individuals who are ultimately responsible for the day-to-day
financial operation of the business. Such day-to-day financial operations
include but are not limited to the following:
(a) signing checks on the business's bank
account;
(b) signing the business's
tax returns;
(c) paying the
business's obligations;
(d) making
the final decision on which obligations of the business are to be
paid;
(e) conducting the business's
general financial affairs;
(f)
filing returns or paying taxes on behalf of the business; or
(g) complying with any requirement of the Tax
Law;
(3) all
trade names (doing business as, trading as, etc.) under which the owner,
business, partnership or corporation operates;
(4)
(i)
business location (physical) and mailing address if different for the principal
place of business whether located within or without the State; and
(ii) the mailing address and location
(physical) of all business outlets inside the State and the mailing address and
location (physical) of any other business outlet making sales within this
State;
(5) names and
addresses of the previous owners of the business (if applicable);
(6) date of commencement or opening of a new
business;
(7) Federal employer
identification number (if applicable); and
(8) any additional information which may be
requested.
(i)
(1) The certificate of registration should be
filed with the New York State Department of Taxation and Finance, Sales Tax
Registration Unit, W.A. Harriman Campus, Albany, NY 12227.
(2) Within five days after a properly
completed certificate of registration is received, the Department of Taxation
and Finance will either:
(i) issue a
certificate of authority to collect tax; or
(ii) issue a notice of proposed refusal to
issue a certificate of authority.
(j)
(1)
Except as otherwise provided by part LL-1 of chapter 57 of the Laws of 2008,
which directs a re-registration program to be completed by March 31, 2012, and
imposes a re-registration application fee, there shall be no charge to an
applicant for a certificate of authority.
(2) The issuance and/or continuance of a
certificate of authority may be conditioned upon the filing of a bond or
establishment of a trust account as provided for in section
539.5 of this Part.
(k) Every person who elects to
file a certificate of registration, though not required to do so, to whom a
certificate of authority is issued thereby consents to and assumes all the
obligations of a person required to collect tax.
(l) Conducting a business without possessing
a valid certificate of authority. A penalty of up to $500 for the first day of
business operation without a certificate of authority plus a penalty of up to
$200 for each subsequent day of operation not to exceed $10,000 in the
aggregate may be imposed for selling tangible personal property or services
subject to tax, receiving amusement charges or operating a hotel, purchasing or
selling tangible personal property for resale, or selling automotive fuel. In
addition, any person required to file a certificate of registration for a
certificate of authority who fails to file such certificate of registration,
may be subject to a penalty in an amount not exceeding $200, and/or the
criminal penalties provided by section 1817 of the Tax Law.
(m) Every certificate of authority is subject
to the suspension and/or revocation procedures described in section
539.4 of this Part.
(n)
(1)
(i) Except as otherwise provided in this
subdivision, a certificate of authority issued pursuant to a certificate of
registration filed as provided in this section may be issued for a specified
period of not less than three years and, by its terms, would expire at the end
of the specified period.
(ii) A
certificate of authority may be issued to a show vendor, entertainment vendor,
or temporary vendor for a specified period of less than three years, in which
case it will expire at the end of the specified period.
(iii) A certificate of authority may be
subject to an expiration and renewal process in accordance with the terms and
conditions provided in Part 540 of this Title even if it has not been in effect
for its specified period.
(iv) A
show or entertainment vendor whose certificate of authority will expire
December 31, 2008, will automatically receive from the department a new
certificate of authority, effective January 1, 2009, provided that such vendor
has timely filed tax returns and paid the applicable tax due.
(2) All persons holding a
certificate of authority shall, in due course, be required to file a new
certificate of registration (renewal).
(3) Procedures for the expiration of the
certificate of authority and filing a new certificate of registration (renewal)
are provided in Part 540 of this Title.
(4) When a person holding a certificate of
authority requests that the certificate of authority be associated, combined,
or consolidated for purposes of the expiration and renewal process with one or
more other certificates of authority issued to that person, all of the renewed
certificates of authority may be for a common specified period in accordance
with paragraph (1) of this subdivision.
Example:
ABC Company, whose certificate of authority was issued
three years ago expanded its operations by adding a retail outlet in each year
of the past three years. A separate certificate of authority was issued for
each of the three new locations and separate sales tax returns are filed for
each location. The sales tax returns are prepared for all locations by the
company's main office. For ease of administration, ABC Company requests that
each certificate of authority be renewed simultaneously for all its locations,
even though the certificates of authority for all locations were originally
issued at different times. Based upon the written request by the vendor for
consolidation for renewal purposes of the certificates of authority, the
department may:
(1) expire the other
existing certificates of authority;
(2) require registration renewal applications
for all locations; and
(3) issue a
new certificate of authority for each location, each of which will be valid for
the same specified period.
