New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 561 - Motor Fuel › Section 561.7 - Collection of retail sales tax

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				  When motor fuel is sold at retail, rather than passing through the prepaid tax
				  to the customer, the seller must collect the State and local sales taxes based
				  upon the actual selling price of the motor fuel less the State motor fuel tax
				  imposed by article 12-A and, where applicable, the New York City tax on leaded
				  gasoline, at the State and local tax rates in effect where the taxable sale
				  occurs. The price upon which the retail sales tax is based must not include the
				  prepaid taxes paid on the fuel. The term retail sales for purposes of motor
				  fuel transactions shall have the same meaning as contained in section
				  526.6  of
				  this Title.
(b) Purchasers of a
				  large volume of motor fuel shall give the seller a certificate in such form as
				  the Department of Taxation and Finance may prescribed indicating whether the
				  fuel is being purchased for resale or purchased at retail for the purchaser's
				  own use. Where the purchaser of a large volume of motor fuel does not provide
				  the seller with such a certificate, the seller must determine whether the
				  prepaid tax which would be due on each gallon of motor fuel if the fuel
				  purchased for resale or the retail sales tax which would be due on each gallon
				  of motor fuel if the fuel was purchased at retail is greater. If the prepaid
				  tax is greater, the seller shall treat the purchase as a purchase for resale,
				  pass through the prepaid tax and issue a certification of tax payment as
				  provided in section
				  561.5 
				  of this Part. If the retail sales tax is greater, the seller shall treat the
				  purchase as purchase at retail and collect the sales tax. For purposes of this
				  subdivision, a purchase of a large volume of motor fuel is a purchase of 500
				  gallons or more.
(c) Exempt sales.
(1) Retail sales of motor fuel to the
				  following purchasers in the described circumstances are exempt from sales tax:
(i) the United States of America, and any of
				  its agencies and instrumentalities;
(ii) New York State, or any of its agencies,
				  instrumentalities, public corporations (including a public corporation created
				  pursuant to agreement or compact with another state or Canada) or political
				  subdivisions (including school districts);
(iii) a hospital which holds a current
				  operating certificate issued by the New York State Department of Health under
				  section 2805  of the Public Health Law or by the New
				  York State Department of Mental Hygiene under article 31 of the Mental Hygiene
				  Law and which qualifies as an exempt organization under section 1116 (a)(4)  of the Tax
				  Law;
(iv) an airline, as defined in
				  section
				  528.10 
				  of this Title, purchasing kero-jet fuel for use in its own aircraft or for use
				  in aircraft under its control;
(v)
				  an Indian nation or tribe listed in section
				  529.9 
				  of this Title making purchases from a retail service station on its qualified
				  reservation as defined in section
				  529.9,
				  and an individual member of such an Indian nation or tribe residing on such a
				  qualified reservation making purchases from a retail service station on the
				  reservation where he resides; and
(vi) diplomatic missions and diplomatic
				  personnel purchasing motor fuel with credit cards issued by oil companies, as
				  provided in section
				  529.5(i) 
				  of this Title.
Only purchasers who fall within the categories listed above
					 may purchase motor fuel at retail without payment of the sales tax to the
					 vendor. The other exemptions from sales tax provided for by sections 1115 and
					 1116  of the Tax Law do not apply to sales
					 of motor fuel. Although these sales are not exempt under these other exemption
					 provisions, refunds and credits are allowed. See section
					 561.10(c) 
					 of this Part.