N.Y. Comp. Codes R. & Regs. tit. 20 § 528.19

Current through Register Vol. 46, No. 45, November 2, 2024

Section 528.19 - Sales at private residences

Tax Law, § 1115(a)(18)

(a)Exemption.

(1) Tangible personal property sold by a person at his residence is exempt, provided the person making the sale meets the following prerequisites:

(i) such person does not engage in such sales for more than three days in a calendar year, except that this restriction shall not apply to a person under 16 years of age:

(ii) such person or any member of his household does not conduct a trade or business in which similar items are sold; and

(iii) the receipts from such sales can reasonably be expected not to exceed $600 in a calendar year.

Example 1:

A person 16 years of age or older has a garage sale at his residence for three days in a particular calendar year, for which his receipts are $500. Later, during the same calendar year, he has another garage sale, the receipts from which are $100. The first $500 is exempt. Since he exceeded the three-day limit per calendar year, the receipts from the subsequent sale are subject to tax although his total receipts for the calendar year do not exceed $600.

Example 2:

A person under 16 years makes and sells various gift items from his residence. He reasonably expects his receipts to be $600 or less for the calendar year. However, his receipts for the year are $800. The first $600 is exempt from tax and the balance is taxable.

(2) A person's residence is his permanent place of abode, whether or not maintained by the person or another person for him.

Example 3:

A homeowner has a garage sale and, in doing so, sells an old table and some chairs at his home. The homeowner is not in the furniture business, the sale was for one day, and he sold the table and chairs for $100. The sale was exempt.

Example 4:

A group of neighbors decide to hold a community lawn sale at a common site. The receipts from the sale will be apportioned to the participants based on the items each furnishes. Since the sale is conducted by a group and not by an individual, the sale is subject to tax regardless of the amount or the duration of the sale.

(b)Sales subject to tax in all cases.

(1) This exemption shall not apply to sales at a private residence conducted by an auctioneer, sheriff or any other third party.

(2) This exemption shall not apply to a sale held to liquidate an estate.

(3) This exemption shall not apply to sales of:

(i) boats;

(ii) snowmobiles; or

(iii) motor vehicles, except those motor vehicles sold within the exemption provided for in section 528.15 of this Part.

(c)Other taxable sales.

(1) If an individual 16 years of age or older has a sale that is operated for more than three days, or if any individual has a sale the receipts from which are more than $600, he must collect the appropriate State and local tax and pay it within 20 days to the Processing Division, Sales Tax Section. Payment must be remitted with a report of casual sale, which may be obtained from any district office.

(2) If an individual operates a trade or business from his home, he must register and collect the appropriate amount of tax in the same manner as any other vendor.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 528.19