Form Ft-123 - Ida Agent Or Project Operator Exempt Purchase Certificate For Fuel Page 2

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Page 2 of 2 FT-123 (10/14)
Instructions
Misuse of this certificate
To the purchaser
You may use Form FT-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 excise taxes and 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 FT-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. However, IDAs do not normally make direct purchases for
tax if the certificate is valid. The certificate will be considered valid if it is:
projects. Commonly, an IDA instead appoints a business enterprise or
• accepted in good faith;
developer, contractor, or subcontractor as its agent or project operator.
• in your possession within 90 days of the transaction; and
Such purchases made by the agent or project operator, acting within
the authority granted by the IDA, are deemed to be made by the IDA
• properly completed (all required entries were made).
and therefore exempt from tax. Purchases made by an agent or project
An exemption certificate is accepted in good faith when you have no
operator to operate a business after the project is completed are subject
knowledge that the exemption certificate is false or is fraudulently given,
to tax.
and you exercise reasonable ordinary due care. If you do not receive
Example: An IDA agreement with its agent, Contractor X, states that
a properly completed certificate within 90 days after the delivery of the
Contractor X may make all purchases of materials and equipment
property or service, you will share with the purchaser the burden of
necessary for completion of the project as agent for the IDA.
proving the sale was exempt.
Contractor X purchases non-highway diesel motor fuel for use in
You must also maintain a method of associating an invoice (or other
construction equipment that will be used to prepare the site for
source document) for an exempt sale with the exemption certificate you
construction. Since the fuel is being used to complete the project,
have on file from the purchaser. You must keep this certificate at least
Contractor X may purchase the fuel exempt from taxes.
three years after the due date of your sales tax return to which it relates,
or the date the return was filed, if later.
When the project is completed, Contractor X purchases motor
fuel and highway diesel motor fuel for use in snowplows and other
Privacy notification
maintenance vehicles used to maintain the parking lots for the
business. Contractor X may not purchase this fuel exempt from tax
New York State Law requires all government agencies that maintain
a system of records to provide notification of the legal authority for
because it is being used to operate, not to complete, the project.
any request, the principal purpose(s) for which the information is to be
Exempt purchases
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
To qualify for exemption, the purchases must be made within the
Publication 54, Privacy Notification. See Need help? for the Web
authority granted by the IDA and used to complete the project, but not to
address and telephone number.
operate the completed project.
Box A – Motor fuel is gasoline, benzol, reformulated blend stock for
oxygenate blending, conventional blend stock for oxygenate blending,
Need help?
E85, fuel grade ethanol that meets the ASTM International active
standards specification D4806 or D4814, or other product which is
Visit our Web site at
suitable for use in the operation of a motor vehicle engine. If you are
• get information and manage your taxes online
purchasing motor fuel exempt from tax, mark this box.
• check for new online services and features
Box B – Highway diesel motor fuel is any diesel motor fuel that is not
non-highway diesel motor fuel. If you are purchasing highway diesel
Sales Tax Information Center:
(518) 485-2889
motor fuel exempt from tax, mark this box.
Box C – Non-highway diesel motor fuel is any diesel motor fuel
To order forms and publications:
(518) 457-5431
designated for use other than on a public highway, and is dyed diesel
motor fuel. If you are purchasing non-highway diesel motor fuel exempt
Text Telephone (TTY) Hotline
from tax, mark this box.
(for persons with hearing and
speech disabilities using a TTY):
(518) 485-5082
Diesel motor fuel is No. 1 diesel fuel, No. 2 diesel fuel, biodiesel,
kerosene, fuel oil, or other middle distillate, and also motor fuel suitable
for operating a diesel engine. Diesel motor fuel does not include any
product specifically designated “No. 4 diesel fuel.”
Box D – Residual petroleum product means the topped crude of refinery
operations, including No. 5 fuel oil, No. 6 fuel oil, bunker C, and the
special grade of diesel product designated as No. 4 diesel fuel, that is
not suitable for use in the operation of a motor vehicle engine. If you are
purchasing residual petroleum product exempt from tax, mark this box.

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