N.Y. Tax Law 1117 – Certain sales of motor vehicles and vessels
§ 1117. Certain sales of motor vehicles and vessels. (a) Receipts from any sale of a motor vehicle or vessel shall not be subject to the retail sales tax imposed under subdivision (a) of section eleven hundred five of this article, despite the taking of physical possession by the purchaser within this state, provided that:
Terms Used In N.Y. Tax Law 1117
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Article: means a prose composition, including commentaries, reviews, editorials, op-eds, letters to the editor, and reader comments on articles. See N.Y. Tax Law 1101
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- vendor: includes :
(A) A person making sales of tangible personal property or services, the receipts from which are taxed by this article;
(B) A person maintaining a place of business in the state and making sales, whether at such place of business or elsewhere, to persons within the state of tangible personal property or services, the use of which is taxed by this article;
(C) A person who solicits business either:
(I) by employees, independent contractors, agents or other representatives; or
(II) by distribution of catalogs or other advertising matter, without regard to whether such distribution is the result of regular or systematic solicitation, if such person has some additional connection with the state which satisfies the nexus requirement of the United States constitution; and by reason thereof makes sales to persons within the state of tangible personal property or services, the use of which is taxed by this article;
(D) A person who makes sales of tangible personal property or services, the use of which is taxed by this article, and who regularly or systematically delivers such property or services in this state by means other than the United States mail or common carrier;
(E) A person who regularly or systematically solicits business in this state by the distribution, without regard to the location from which such distribution originated, of catalogs, advertising flyers or letters, or by any other means of solicitation of business, to persons in this state and by reason thereof makes sales to persons within the state of tangible personal property, the use of which is taxed by this article, if such solicitation satisfies the nexus requirement of the United States constitution;
(F) A person making sales of tangible personal property, the use of which is taxed by this article, where such person retains an ownership interest in such property and where such property is brought into this state by the person to whom such property is sold and the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession;
(G) Any other person making sales to persons within the state of tangible personal property or services, the use of which is taxed by this article, who may be authorized by the commissioner of taxation and finance to collect such tax by part IV of this article;
(H) The state of New York, any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada) or political subdivisions when such entity sells services or property of a kind ordinarily sold by private persons; and
(I) A seller of tangible personal property or services, the use of which is taxed by this article if either (I) an affiliated person that is a vendor as otherwise defined in this paragraph uses in the state trademarks, service marks, or trade names that are the same as those the seller uses; or (II) an affiliated person engages in activities in the state that inure to the benefit of the seller, in its development or maintenance of a market for its goods or services in the state, to the extent that those activities of the affiliate are sufficient to satisfy the nexus requirement of the United States constitution. See N.Y. Tax Law 1101
(1) the purchaser, at the time of taking delivery
(i) is a nonresident of this state,
(ii) has no permanent place of abode in this state, and
(iii) is not engaged in carrying on in this state any employment, trade, business or profession in which the motor vehicle or vessel will be used in this state;
(2) (i) the vendor of such motor vehicle does not issue to such purchaser with respect to such motor vehicle either a temporary certificate of registration pursuant to subdivision seven of § 420 of the vehicle and traffic law or a temporary registration pursuant to § 420-a of the vehicle and traffic law, or other like certificate or registration; or
(ii) the vendor of such vessel does not assign to such vessel a New York registration number or issue to such purchaser with respect to such vessel a temporary registration pursuant to § 2255 of the vehicle and traffic law, or other like registration or temporary certificate of registration;
(3) the purchaser does not register such motor vehicle or vessel, as the case may be, in this state prior to registering such motor vehicle or vessel in another state or jurisdiction; and
(4) prior to taking delivery such purchaser furnishes to such vendor any affidavit, statement or additional evidence, documentary or otherwise, which the commissioner may require to ensure proper administration of the tax imposed under subdivision (a) of section eleven hundred five of this article.
(b) A vendor shall not be liable for failure to collect tax on receipts from any sale of a motor vehicle or vessel provided that the vendor prior to making delivery obtains and keeps available for inspection by the commissioner any affidavit, statement or additional evidence, documentary or otherwise, as may be required to be furnished under subdivision (a) of this section; provided that such affidavit, statement or additional evidence is not known by the vendor, prior to making physical delivery of the motor vehicle or vessel, to be false.
(c) For purposes of this section, the term:
(1) "Motor vehicle" shall include a motor vehicle as defined in § 125 of the vehicle and traffic law and a trailer as defined in § 156 of the vehicle and traffic law.
(2) "Vessel" shall (i) include a vessel as defined in § 2250 of the vehicle and traffic law, including any inboard or outboard motor and any trailer, as defined in § 156 of the vehicle and traffic law, sold with the vessel for use with such vessel; (ii) but not include a vessel weighing two hundred pounds or less, inclusive of any mast and sail or other rigging, which is not equipped with a motor and which is exempt from registration under paragraph (g) of subdivision one of § 2252 of the vehicle and traffic law.
(d) Nothing in this section or section twelve hundred fourteen of this chapter shall be construed as meaning that the provisions of subdivision (i) of section eleven hundred eleven of this article do not apply to leases of motor vehicles, vessels and trailers described in subdivision (i) of section eleven hundred eleven of this article.