N.Y. Comp. Codes R. & Regs. tit. 20 § 529.3

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

Section 529.3 - United States of America, agencies and instrumentalities thereof

Tax Law, § 1116(a)(2)

(a)Governmental entities.

(1)Agencies and instrumentalities of the United States as used in this section means any authority, commission or independent board created by an act of Congress for a public purpose, and which is immune from state taxation.

(2) States of the United States and their political subdivisions, the District of Columbia, territories and possessions of the United States are not exempt from the tax.

(3) Some entities, although created by an act of Congress, are not governmental entities and are not exempt from the sales and use taxes.

(b)As purchaser.

(1) The United States of America, and any of its agencies and instrumentalities immune from taxation (hereinafter referred to as United States governmental entities) are not subject to the sales or use tax when they are the purchaser, user or consumer of tangible personal property or services or when they are the occupant of hotel rooms or a patron at a place of amusement, club, roof garden, cabaret or similar place.

Example 1:

The purchase of goods and services that will be used in congressional offices and paid for out of appropriated congressional funds are purchases by the United States government when the appropriate exemption document is submitted.

Example 2:

Where a governmental employee receives a uniform allowance and the employee subsequently uses that allowance to purchase uniforms, such purchases are not purchases by the United States government.

(2) United States governmental entities as purchasers, users, consumers, occupants or patrons must exercise their right to exemption through the issuance of governmental purchase orders or the appropriate exemption document.

(c)As vendor.

(1) Sales by United States governmental entities of tangible personal property or services of a kind not ordinarily sold by private persons, are exempt from the sales and use tax.

Example 1:

Sales of pamphlets, booklets and documents by the Federal Government Printing Office are not subject to the sales or use tax.

(2) Sales by United States governmental entities of tangible personal property or services of a kind ordinarily sold by private persons are subject to the sales and use tax.

Example 2:

Proof sets of coins sold by the U.S. Mint are subject to tax.

Example 3:

Sales of gifts and souvenirs by the United States or one of its agencies at a Federal park or monument are subject to tax.

Example 4:

A United States governmental agency operates a hotel; since hotel services are ordinarily provided by private persons, such services are subject to the appropriate tax.

(3) Failure by United States governmental entities to collect sales tax on transactions which are subject to tax does not relieve the purchaser from the payment of tax. The purchaser must pay the tax directly to the Department of Taxation and Finance. See Part 532 of this Title for payment of the tax.

(d)Waiver of immunity.

Where the Congress has waived immunity from taxation such as in the case of national banks (12 USC, § 548) or with respect to other instrumentalities or agencies of the United States, no exemption from the payment or collection of sales or use tax exists.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 529.3