Form St-123 - Ida Agent Or Project Operator Exempt Purchase Certificate Page 2
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2Page 2 of 2 ST-123 (7/14)
Instructions
Misuse of this certificate
To the purchaser
You may use Form ST-123 if you:
Misuse of this exemption certificate may subject you to serious civil and
criminal sanctions in addition to the payment of any tax and interest due.
• have been appointed as an agent or project operator by an industrial
These include:
development agency (IDA) and
• A penalty equal to 100% of the tax due;
• the purchases qualify for exemption from sales and use tax as
described in the IDA contract.
• A $50 penalty for each fraudulent exemption certificate issued;
• Criminal felony prosecution, punishable by a substantial fine and a
You may use Form ST-123 as a single-purchase certificate or as a
possible jail sentence; and
blanket certificate covering the first and subsequent purchases qualifying
for the project listed.
• Revocation of your Certificate of Authority, if you are required to
be registered as a vendor. See TSB-M-09(17)S, Amendments that
Agent or project operator sales tax ID number — If you are registered
Encourage Compliance with the Tax Law and Enhance the Tax
with the Tax Department for sales tax purposes, you must enter your
Department’s Enforcement Ability, for more information.
sales tax identification number on this certificate. If you are not required
to be registered, enter N/A.
To the seller
Industrial development agencies and authorities (IDAs) are public benefit
When making purchases as agent or project operator of an IDA, the
corporations under General Municipal Law Article 18-A and the Public
purchaser must provide you with this exemption certificate with all entries
Authorities Law, for the purpose of promoting, developing, encouraging,
completed to establish the right to the exemption. You must identify the
and assisting in the acquisition, construction, reconstruction,
project on each bill and invoice for such purchases and indicate on the
improvement, maintenance, equipping, and furnishing of industrial,
bill or invoice that the IDA or agent or project operator of the IDA was the
manufacturing, warehousing, commercial, research, and recreational
purchaser.
facilities in New York State.
As a New York State registered vendor, you may accept an exemption
IDAs are exempt from the payment of sales and use tax on their
certificate in lieu of collecting tax and be protected from liability for the
purchases, in accordance with Tax Law section 1116(a)(1). However,
tax if the certificate is valid. The certificate will be considered valid if it is:
IDAs do not normally make direct purchases for projects. Commonly,
• accepted in good faith;
IDAs instead appoint a business enterprise or developer, contractor, or
• in your possession within 90 days of the transaction; and
subcontractor as its agent or project operator. Such purchases made by
the agent or project operator, acting within the authority granted by the
• properly completed (all required entries were made).
IDA, are deemed to be made by the IDA and therefore exempt from tax.
An exemption certificate is accepted in good faith when you have no
Example 1: IDA agreement with its agent or project operator
knowledge that the exemption certificate is false or is fraudulently given,
states that contractor X may make all purchases of materials and
and you exercise reasonable ordinary due care. If you do not receive
equipment necessary for completion of the project, as agent for
a properly completed certificate within 90 days after the delivery of the
the IDA. Contractor X rents a backhoe and a bulldozer for site
property or service, you will share with the purchaser the burden of
preparation, purchases concrete and lumber to construct a building,
proving the sale was exempt.
and purchases machinery to be installed in the building. All these
You must also maintain a method of associating an invoice (or other
purchases by contractor X as agent of the IDA are exempt from tax.
source document) for an exempt sale with the exemption certificate you
Example 2: IDA agreement with its agent or project operator states
have on file from the purchaser. You must keep this certificate at least
that contractor X may make all purchases of materials and equipment
three years after the due date of your sales tax return to which it relates,
to be incorporated into the project, as agent for the IDA. Contractor X
or the date the return was filed, if later.
makes the same purchases as in Example 1. Since the concrete,
lumber, and machinery will actually be incorporated into the project,
Privacy notification
contractor X may purchase these items exempt from tax. However,
New York State Law requires all government agencies that maintain
rental of the backhoe and bulldozer is not exempt since these
a system of records to provide notification of the legal authority for
transactions are normally taxable and the IDA agreement does not
any request, the principal purpose(s) for which the information is to be
authorize contractor X to make such rentals as agent of the IDA.
collected, and where it will be maintained. To view this information, visit
our Web site, or, if you do not have Internet access, call and request
A contractor or subcontractor not appointed as agent or project operator
Publication 54, Privacy Notification. See Need help? for the Web
of an IDA must present suppliers with Form ST-120.1, Contractor
address and telephone number.
Exempt Purchase Certificate, when making purchases that are ordinarily
exempt from tax in accordance with Tax Law sections 1115(a)(15) and
1115(a)(16). For more information, see Form ST-120.1.
Need help?
Exempt purchases
Visit our Web site at
To qualify, the purchases must be made within the authority granted by
• get information and manage your taxes online
the IDA and used to complete the project (not to operate the completed
• check for new online services and features
project).
A. Mark box A to indicate you are purchasing tangible personal property
Sales Tax Information Center:
(518) 485-2889
and services (other than utility services and motor vehicles or
tangible personal property installed in a qualifying motor vehicle)
To order forms and publications:
(518) 457-5431
exempt from tax.
B. Mark box B to indicate you are purchasing certain consumer utility
Text Telephone (TTY) Hotline
services used in completing the project exempt from tax. This
(for persons with hearing and
includes gas, electricity, refrigeration, and steam; and gas, electric,
speech disabilities using a TTY):
(518) 485-5082
refrigeration, and steam services.
C. Mark box C to indicate you are purchasing a motor vehicle or tangible
personal property related to a qualifying motor vehicle exempt from
tax.
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