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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
97
Purchases Subject to Use Tax
Use tax is due on the cost of the following:
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If an item is taken out of inventory and used by the dealership.
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If items are purchased from out-of-state and no sales tax is charged (i.e. business cards, office supplies…)
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If “free oil changes”are provided to customers, use tax is due on the cost of the oil and filters unless it is
shown to be included as part of the sale of the car.
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Purchases of furniture, machinery and equipment where sales tax is not charged.
Information provided courtesy of Richards, Witt & Charles, LLP: 516.741.0515