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HOT TOPICS
2015 GNYADA Membership Directory
59
KEY REMINDERS ON SALES AND USE TAX ISSUES
Mixed-Used Vehicles:
Dealer may compute use tax due on “mixed use” vehicles (i.e. loaner cars, demos used by employees) on
1% of the cost per month if the vehicle is used:
•
For six months or less with no mileage restriction; or
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For more than six months but no more than one year and
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For less than 15,000 miles.
•
If the mileage exceeds 15,000 miles or number of months used exceeds 12 months, FULL sales tax
will be assessed on the cost of the vehicle.
•
Demo log should be maintained reflecting dates in and out of service.
•
Use tax will not be due if you state on the sales invoice or other written document provided to the
customer that the sale includes the use of a loaner car.
•
Vehicles held in inventory exclusively for resale but used for demonstration to customers are not
taxable if used solely for demonstration.
Sales of Motor Vehicles to Non-Residents
•
If the vehicle is sold to a non-resident who will register it in New York, sales tax must be collected
based on the rate in effect where the sale occurs.
•
When in-transit permits are used, the vehicle is not subject to New York state and local sales tax.
To claim the non-resident exemption, purchaser must:
•
Be a non-resident of New York State
•
Have no permanent place of abode in New York
•
Not be engaged in business, employment or trade in New York
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Give dealer a completed non-resident affidavit (Form DTF-820)
•
Dealer must indicate EXEMPT: OUT OF STATE PURCHASE on the MV-50
•
ANYTIME a buyer resides in a county that is different from
where your dealership is located, the customer must
complete a DTF-820.