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 Frequently
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Sales Tax |
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How do I register to collect sales tax? |
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If your business is required to collect sales taxes, or if you want to buy and sell for resale (for example, as a wholesale distributor), you must register with the Tax Department prior to conducting such transactions. To register, you must file Form DTF-17, Application for Registration as a Sales Tax Vendor, and when applicable, Form DTF-17-ATT, Schedule of Business Locations for a Consolidated Filer.
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What is the New York State sales tax rate? What are the local rates? |
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Effective June 1, 2005, the New York State sales and compensating use tax rate was decreased from 4.25% to 4%. Local rates range from 3% to 5.5%. In addition, a State-imposed tax in the Metropolitan Commuter Transportation District(MCTD) was raised from 0.25% to 0.375%, also effective June 1, 2005. The MCTD consists of Dutchess County, Nassau County,Orange County, Putnam County, Rockland County, Suffolk County, Westchester County, and New York City.
For combined State and local rate information, see Publication 718, New York State Sales and Use Tax Rates by Jurisdiction, and Publication 718-A, Enactment and Effective Dates of Sales and Use Tax Rates. For a list of New York communities and the taxing jurisdictions where they are located, see Publication 717, New York State Communities.
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What happens if you don't pay the sales or use tax due? |
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Failure to pay sales or use tax may result in the imposition of penalty and interest. The Tax Department conducts both routine and special audits to promote compliance. In addition, the U.S. Customs Service provides the Department with information from customs declarations filed by New York State residents returning from overseas travel. The Department also obtains information on sales to New York State residents under information exchange agreements with other states.
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Do I have to report sales and use taxes for internet purchases on my personal income tax return |
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Yes. Internet purchases are subject to the sales and use taxes in New York State in the same manner all other purchases of items or services are subject to sales and use taxes. If you paid sales tax to the internet company you purchased the item from, you may or may not owe any additional sales or use tax to New York State. However, if the internet company did not collect any New York State or local sales tax on the purchase of a taxable item or service, you must report the amount of New York State and local sales or use tax due on your personal income tax return.
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How do I terminate my sales tax account if I?m going out of business? |
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Within 20 days of ceasing to do business, file your final sales tax return. The final return must indicate the actual period covered by the return (i.e., the first day of the period to the final day of business) and must be accompanied by the payment of all taxes due and by your certificate of authority. (If you are unable to return your certificate, attach an explanation.) The return should be clearly marked "FINAL RETURN" at the top.
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I only made small dollar purchases and I didn?t keep my receipts for the year. How do I calculate my State and local sales or use tax liability on my personal income tax return? |
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New York State has a simple time-saving method you may elect to use to compute
your State and local sales or use tax liability on individual items or services
costing less than $1,000 each.
If you file Form IT-150, IT-201, IT-203 or IT-370 see IT-150, IT-201, IT-203 or
IT-370: Information on paying sales and use taxes.
If you file Form IT-205 or IT-370-PF see IT-205 or IT-370-PF: Information on paying
sales and use taxes.
An individual who is not filing an income tax return but who owes sales or use
tax for 2005 must pay the sales or use tax by filing Form ST-140, Individual Purchaser's
Report of Sales and Use Tax by April 17, 2006 (April 18th if you file your federal
income tax returns at the IRS Service Center in Andover, MA). See also Instructions
to Form ST-140.
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