Resale Certificate (Page 2 of 2) in pdf

ST-120 (6/99) (back)

Instructions For Use of Resale Certificates

Form ST-120, Resale Certificate, is a sales tax exemption

vendors may not issue a blanket certificate. A temporary vendor is

certificate. This certificate is only for use by a purchaser who:

a vendor (other than a show or entertainment vendor), who, in no

more than two consecutive quarters in any 12-month period,

A - is registered as a New York State sales tax vendor and has a

makes sales of tangible personal property or services that are

valid Certificate of Authority issued by the Tax Department

subject to tax.

and is making purchases of tangible personal property (other

than motor fuel or diesel motor fuel) or services that will be

resold or transferred to the purchaser’s customers, or

This certificate does not exempt prepaid sales tax on cigarettes.

B - is not required to be registered with the New York State Tax

This certificate may not be used to purchase motor fuel or diesel

Department;

motor fuel.

- is registered with another state, the District of Columbia, a

province of Canada, or other country, or is located in a state,

province, or country which does not require sellers to register

If you intentionally issue a fraudulent exemption certificate, you will

become liable for penalties and interest, in addition to the sales

for sales tax or VAT purposes; and

tax initially due. Some penalties that may apply:

- is purchasing items for resale that will be either:

● 100% of the tax due

1) delivered by the seller to the purchaser’s customer or to

● $50 for each fraudulent exemption certificate issued

an unaffiliated fulfillment service provider located in New

York State, or

● a misdemeanor penalty consisting of fines not to exceed

2) delivered to the purchaser in New York State, but resold

$10,000 for an individual or $20,000 for a corporation

from a business located outside the state.

● loss of your Certificate of Authority

Note: For purposes of 1) above, delivery by the seller

includes delivery in the seller’s own vehicle or by common

To the Seller

carrier, regardless of who arranges for the transportation.

If you are a New York State registered vendor and accept an

exemption document, you will be protected from liability for the

tax, if the certificate is valid.

If, among other things, a purchaser has any place of business

or salespeople in New York State, or owns or leases tangible

The certificate will be considered valid if it was:

personal property in the State, the purchaser is required to be

registered in New York State. If you need help determining if

● accepted in good faith,

you are required to register because you engage in some other

● in the vendor’s possession within 90 days of the transaction, and

activity in the State, contact the Department (see the Need

● properly completed (all required entries were made).

Help section). However, a purchaser who is not otherwise

required to be registered in New York may purchase fulfillment

services from an unaffiliated New York fulfillment service

A certificate is accepted in good faith when a seller has no

provider and have its tangible personal property located on the

knowledge that the exemption certificate is false or is fraudulently

premises of the provider without being required to be registered

given, and reasonable ordinary due care is exercised in the

in New York State.

acceptance of the certificate.

If you meet the registration requirements and engage in business

You must get a properly completed exemption certificate from your

activities in New York State without possessing a valid Certificate

customer no later than 90 days after the delivery of the property

of Authority, you will be subject to penalty of up to $500 for the

or the performance of the service. When you receive a certificate

first day on which you make a sale or purchase, and up to $200

after the 90 days, both you and the purchaser are subject to the

for each additional day, up to a maximum of $10,000.

burden of proving that the sale was exempt, and additional

documentation may be required. An exemption certificate received

on time that is not properly completed will be considered

Limitations on use

satisfactory if the deficiency is corrected within a reasonable

Contractors cannot use this certificate. They must either:

period. You must also maintain a method of associating an invoice

(or other source document) for an exempt sale made to a

● issue Form ST-120.1, Contractors Exempt Purchase Certificate,

if the tangible personal property being purchased qualifies for

customer with the exemption certificate you have on file from that

exemption as specified by the certificate, or

customer.

● issue Form AU-297, Direct Payment Permit, or

● pay sales tax at the time of purchase.

Invalid exemption certificates - Sales transactions which are not

supported by valid exemption certificates are deemed to be

taxable retail sales. The burden of proof that the tax was not

Contractors are entitled to a refund or credit of sales tax paid on

required to be collected is upon the seller.

materials used in repairing, servicing or maintaining real property,

if the materials are transferred to the purchaser of the taxable

service in conjunction with the performance of the service. For

Retention of exemption certificates - You must keep this

additional information, see Publication 862, Sales and Use Tax

certificate for at least three years after the due date of the

Classifications of Capital Improvements and Repairs to Real

return to which it relates, or the date the return was filed, if later.

Property.

To the Purchaser

Need Help?

Enter all the information requested on the front of this form.

Tax information: 1 800 972-1233

Forms and publications: 1 800 462-8100

You may check the Blanket certificate box to cover all purchases

From outside the U.S. and outside Canada: (518) 485-6800

of the same general type of property or service purchased for

Fax-on-demand forms: 1 800 748-3676

resale. If you do not check the Blanket certificate box, the

Internet access:

certificate will be deemed a Single-use certificate. Temporary

Hearing and speech impaired: 1 800 634-2110

Resale Certificate Page 2

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