Bontrager Real Estate & Auction Service charges New York State and local sales tax. If you are exempt from paying sales tax, New York State is clear that it is the customer’s responsibility to provide current and complete NYS tax exempt paperwork for every purchase. During and after every auction, we complete a self-audit for every tax exempt purchase to make sure paperwork is completed properly, Certificate of Authority numbers are valid. Until we have complete, current tax exempt paperwork on file (with a valid Certificate of Authority number if applicable), sales tax will be charged. New York State periodically updates the forms. Once the new form has been released, older versions of the form are invalid, and it is up to the customer to obtain the newest version of the form for use. There are also many different tax exempt forms which can be found at the New York State Department of Taxation and Finance website (www.tax.ny.gov). It is the responsibility of the buyer to register with NY State, obtain the correct form and use it according to the law. Below are some forms we see at our auctions:
- Resale: Purchasers who are in the business of reselling goods, whether they are registered in NY State or from outside the state are required to complete a current Resale Certificate. We require the individual who has registered with New York State to be tax exempt to sign off on any ST-120 used by people they allow to purchase for them. The New York State Resale Certificate (ST-120) can be found at the New York State Department of Taxation and Finance website (tax.ny.gov) or by clicking this link: https://www.tax.ny.gov/pdf/current_forms/st/st120_fill_in.pdf
- Farm: Purchasers who are authorized (because they own a farm or the farm owner authorizes them) to buy items required for farm production may use the ST-125: Farmer’s and Commercial Horse Boarding Operator’s Exemption Certificate. We require the farm owner to sign off on any form used by anyone purchasing for them so that we have proof that use is authorized. The auction company is not required to accept forms from purchaser’s who don’t have proof that they are authorized to purchase. The ST-125 can be found at the New York State Department of Taxation and Finance website (tax.ny.gov) or by clicking this link: https://www.tax.ny.gov/pdf/current_forms/st/st125.pdf
- Production: Certain businesses or agencies may register with New York State to be exempt from paying sales tax on items purchased for production. There are several different form variations which are found at the New York State Department of Taxation and Finance website (tax.ny.gov). Businesses or agencies must contact the New York State Department of Taxation and Finance for instruction on the legal use of these forms.
- Tax Exempt Organizations: Sometimes civic or charitable organizations such as fire departments, churches, etc. can register with New York State to make tax exempt purchases for their organization. The New York State Department of Taxation and Finance issues these forms (ST 119.1) and they cannot be printed from the website. Purchasers at our auction must present a copy of the form for our files, with something in writing that authorizes that individual to buy for the agency if their name is not on the ST 119.1.