Fillable Form St-120 - Resale Certificate (Page 2 of 2) in pdf

Instructions

ST-120 (1/11) (back)

To the Purchaser

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

This certificate is only for use by a purchaser who:

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

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

You may mark an X in the Blanket certificate box to cover all purchases

valid Certificate of Authority issued by the Tax Department and

of the same general type of property or service purchased for resale.

is making purchases of tangible personal property (other than

If you do not mark an X in the Blanket certificate box, the certificate

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

will be deemed a Single-use certificate. Temporary vendors may not

transferred to the purchaser’s customers, or

issue a blanket certificate. A temporary vendor is a vendor (other than a

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

show or entertainment vendor), who, in no more than two consecutive

Department;

quarters in any 12-month period, makes sales of tangible personal

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

property or services that are subject to tax.

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

This certificate does not exempt prepaid sales tax on cigarettes. This

province, or country which does not require sellers to register for

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

sales tax or VAT purposes; and

– is purchasing items for resale that will be either:

Misuse of this certificate

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

Misuse of this exemption certificate may subject you to serious civil and

unaffiliated fulfillment service provider located in New York

criminal sanctions in addition to the payment of any tax and interest

State, or

due. These include:

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

• A penalty equal to 100% of the tax due;

a business located outside the state.

• A $50 penalty for each fraudulent exemption certificate issued;

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

• Criminal felony prosecution, punishable by a substantial fine and a

delivery in the seller’s own vehicle or by common carrier,

possible jail sentence; and

regardless of who arranges for the transportation.

• Revocation of your Certificate of Authority, if you are required to

Non-New York State purchasers: registration

be registered as a vendor. See TSB-M-09(17)S, Amendments that

Encourage Compliance with the Tax Law and Enhance the Tax

requirements

Department’s Enforcement Ability, for more information.

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

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

To the Seller

property in the State, the purchaser is required to be registered for New

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

York State sales tax.

document, you will be protected from liability for the tax, if the certificate

A business must register (unless the business can rebut the statutory

is valid.

presumption as described in TSB-M-08(3.1)S, Additional Information

The certificate will be considered valid if it was:

on How Sellers May Rebut the New Presumption Applicable to

the Definition of Sales Tax Vendor as Described in TSB-M-08(3)S )

• accepted in good faith;

for New York State sales tax if the business enters into agreements

• in the vendor’s possession within 90 days of the transaction; and

with residents of New York State under which the residents

• properly completed (all required entries were made).

receive consideration for referring potential customers to the

business by links on a Web site or otherwise, and the value

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

of the sales in New York State made by the business through

that the exemption certificate is false or is fraudulently given, and

those agreements totals more than $10,000 in the preceding

reasonable ordinary due care is exercised in the acceptance of the

four sales tax quarters. See TSB-M-08(3)S, New Presumption Applicable

certificate.

to Definition of Sales Tax Vendor, and TSB-M-08(3.1)S.

You must get a properly completed exemption certificate from your

Also see TSB-M-09(3)S, Definition of a Sales Tax Vendor is Expanded

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

to Include Out-of-State Sellers with Related Businesses in New

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

York State, for information on sales tax registration requirements for

90 days, both you and the purchaser are subject to the burden of proving

out-of-state businesses with New York affiliates.

that the sale was exempt, and additional documentation may be required.

An exemption certificate received on time that is not properly completed

A purchaser who is not otherwise required to be registered for New York

will be considered satisfactory if the deficiency is corrected within a

State sales tax may purchase fulfillment services from an unaffiliated

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

New York fulfillment service provider and have its tangible personal

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

property located on the premises of the provider without being required

with the exemption certificate you have on file from that customer.

to be registered for sales tax in New York State.

Invalid exemption certificates – Sales transactions which are not

If you need help determining if you are required to register because you engage

supported by valid exemption certificates are deemed to be taxable

in activity in New York State, contact the department (see Need help?).

retail sales. The burden of proof that the tax was not required to be

If you meet the registration requirements and engage in business

collected is upon the seller.

activities in New York State without possessing a valid Certificate of

Retention of exemption certificates - You must keep this certificate

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

for at least three years after the due date of the return to which it

which you make a sale or purchase, and up to $200 for each additional

relates, or the date the return was filed, if later.

day, up to a maximum of $10,000.

Limitations on use

Need help?

Contractors cannot use this certificate. They must either:

• issue Form ST-120.1, Contractor Exempt Purchase Certificate, if the

Internet access:

tangible personal property being purchased qualifies for exemption

(for information, forms, and publications)

as specified by the certificate, or

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

Sales Tax Information Center:

(518) 485-2889

• pay sales tax at the time of purchase.

To order forms and publications:

(518) 457-5431

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

materials used in repairing, servicing or maintaining real property, if

the materials are transferred to the purchaser of the taxable service

Text Telephone (TTY) Hotline

in conjunction with the performance of the service. For additional

(for persons with hearing and

information, see Publication 862, Sales and Use Tax Classifications of

speech disabilities using a TTY):

(518) 485-5082

Capital Improvements and Repairs to Real Property.

Form St-120 - Resale Certificate Page 2

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