N.Y. Tax Law § 1119: Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to subdivision...

§ 1119. (a) Subject to the conditions and limitations provided for

herein, a refund or credit shall be allowed for a tax paid pursuant to

subdivision (a) of section eleven hundred five or section eleven hundred

ten (1) on the sale or use of tangible personal property if the

purchaser or user, in the performance of a contract, later incorporates

that tangible personal property into real property located outside this

state, (2) on the sale or use of tangible personal property purchased in

bulk, or any portion thereof, which is stored and not used by the

purchaser or user within this state if that property is subsequently

reshipped by such purchaser or user to a point outside this state for

use outside this state, (3) on the sale to or use by a contractor or

subcontractor of tangible personal property if that property is used by

him solely in the performance of a pre-existing lump sum or unit price

construction contract, (4) on the sale or use within this state of

tangible personal property, not purchased for resale, if the use of such

property in this state is restricted to fabricating such property

(including incorporating it into or assembling it with other tangible

personal property), processing, printing or imprinting such property and

such property is then shipped to a point outside this state for use

outside this state, or (6) on the sale of tangible personal property

purchased for use in constructing, expanding or rehabilitating

industrial or commercial real property (other than property used or to

be used exclusively by one or more registered vendors primarily engaged

in the retail sale of tangible personal property) located in an area

designated as an empire zone pursuant to article eighteen-B of the

general municipal law, but only to the extent that such property becomes

an integral component part of the real property. (For the purpose of

clause (3) of the preceding sentence, the term "pre-existing lump sum or

unit price construction contract" shall mean a contract for the

construction of improvements to real property under which the amount

payable to the contractor or subcontractor is fixed without regard to

the costs incurred by him in the performance thereof, and which (i) was

irrevocably entered into prior to the date of the enactment of this

article or the enactment of a law increasing the rate of tax imposed

under this article, or (ii) resulted from the acceptance by a

governmental agency of a bid accompanied by a bond or other performance

guaranty which was irrevocably submitted prior to such date.) Where the

tax on the sale or use of such tangible personal property has been paid

to the vendor, to qualify for such refund or credit, such tangible

personal property must be incorporated into real property as required in

clause (1) above, reshipped as required in clause (2) above, used in the

manner described in clauses (3), (4) and (6) above within three years

after the date such tax was payable to the tax commission by the vendor

pursuant to section eleven hundred thirty-seven. Where the tax on the

sale or use of such tangible personal property was paid by the applicant

for the credit or refund directly to the tax commission, to qualify for

such refund or credit, such tangible personal property must be

incorporated into real property as required in clause (1) above,

reshipped as required in clause (2) above, used in the manner described

in clauses (3), (4) and (6) above within three years after the date such

tax was payable to the tax commission by such applicant pursuant to this

article. An application for a refund or credit pursuant to this section

must be filed with such commission within the time provided by

subdivision (a) of section eleven hundred thirty-nine. Such application

shall be in such form as the tax commission may prescribe. Where an

application for credit has been filed, the applicant may immediately

take such credit on the return which is due coincident with or

immediately subsequent to the time that he files his application for

credit. However, the taking of the credit on the return shall be deemed

to be part of the application for credit and shall be subject to the

provisions in respect to applications for credit in section eleven

hundred thirty-nine as provided in subdivision (e) of such section. With

respect to a sale or use described in clause (3) above where a

pre-existing lump sum or unit price construction contract was

irrevocably entered into prior to the date of the enactment of this

article or the bid accompanied by the performance guaranty was

irrevocably submitted to the governmental agency prior to such date, the

purchaser or user shall be entitled to a refund or credit only of the

amount by which the tax on such sale or use imposed under this article

plus any tax imposed under the authority of article twenty-nine exceeds

the amount computed by applying against such sale or use the local rate

of tax, if any, in effect at the time such contract was entered into or

such bid was submitted.

In the case of the enactment of a law increasing the rate of tax

imposed by this article, the purchaser or user shall be entitled only to

a refund or credit of the amount by which the increased tax on such sale

or use imposed under this article plus any tax imposed under the

authority of article twenty-nine exceeds the amount computed by applying

against such sale or use the state and local rates of tax in effect at

the time such contract was entered into or such bid was submitted.

(b) Subject to the conditions and limitations provided for in this

subdivision, a refund or credit shall be allowed for a tax paid pursuant

to subdivision (a) and paragraph three of subdivision (c) of section

eleven hundred five, or section eleven hundred ten of this article and

any tax imposed pursuant to the authority of article twenty-nine of this

chapter on the sale to or use by an omnibus carrier described in this

subdivision of any omnibus, and of parts, equipment, lubricants, motor

fuel, diesel motor fuel, maintenance, servicing or repair purchased and

used in the operation of any such omnibus by such carrier or on the sale

to or use by a vessel operator described in this subdivision of a vessel

with a seating capacity of more than twenty passengers used for the

transportation on water of passengers for hire, and of parts, equipment,

lubricants, diesel motor fuel, maintenance, servicing or repair

purchased and used in the operation of any such vessel by such operator.

Any such omnibus carrier or vessel operator must provide local transit

service in this state and operate pursuant to a certificate of public

convenience and necessity issued by the commissioner of transportation

of this state or by a like officer or agency of the United States or

pursuant to the contract, franchise or consent between such carrier or

operator and a city having a population of more than one million

inhabitants, or any agency of such city. The amount of such refund or

credit shall be determined by first computing the local transit service

percentage which shall be the proportion that, in the case of such a

carrier, such carrier's vehicle mileage or, in the case of such an

operator, such operator's vessel hours in local transit service in this

state in the calendar year immediately preceding the end of the

quarterly return period, prescribed by section eleven hundred thirty-six

of this article, to which such refund or credit relates bears to such

carrier's total mileage operated in this state in such year or such

operator's total hours operated in this state in such year, as the case

may be. An omnibus carrier or vessel operator which was not engaged in

local transit service in the preceding calendar year shall determine

such percentage with respect to its first four quarterly returns filed

pursuant to section eleven hundred thirty-six of this article, by using

the proportion that such carrier's vehicle mileage or such operator's

vessel hours in local transit service in this state in the first three

months of such operation bears to such carrier's total mileage or such

operator's total hours operated in this state in such period. The amount

of the refund or credit allowable on the combined state and local tax

paid on such purchases or uses then shall be determined in accordance

with the following table:

If the local transit service The refund or credit is:

percentage is:

Less than 10 percent None

10 percent 10 percent of such combined tax

Greater than 10 percent but less 10 percent plus (the product of

than 70 percent 1.5 times each whole percent

in excess of 10 percent) of

such combined tax

70 percent or more 100 percent of such combined tax

For purposes of this subdivision, local transit service, vehicle

mileage, vessel hours, total mileage operated and total hours operated

shall be defined by rule or regulation of the commissioner and records

satisfactory to the commissioner shall be maintained by the carrier or

operator. An application for a refund or credit pursuant to this

subdivision must be filed with the commissioner within the time provided

by subdivision (a) of section eleven hundred thirty-nine of this

article. Such application shall be in such form as the commissioner may

prescribe. Where an application for credit has been filed, the applicant

may immediately take such credit on the return which is due coincident

with or immediately subsequent to the time that the applicant files the

application for credit. However, the taking of the credit on the return

shall be deemed to be part of the application for credit and shall be

subject to the provisions in respect to applications for credit in

section eleven hundred thirty-nine of this article as provided in

subdivision (e) of such section.

(c) A refund or credit equal to the amount of sales or compensating

use tax imposed by this article and pursuant to the authority of article

twenty-nine, and paid on the sale or use of tangible personal property,

shall be allowed the purchaser where such property is later used by the

purchaser in performing a service subject to tax under paragraph (1),

(2), (3), (5), (7) or (8) of subdivision (c) of section eleven hundred

five or under section eleven hundred ten and such property has become a

physical component part of the property upon which the service is

performed or has been transferred to the purchaser of the service in

conjunction with the performance of the service subject to tax or if a

contractor, subcontractor or repairman purchases tangible personal

property and later makes a retail sale of such tangible personal

property, the acquisition of which would not have been a sale at retail

to him but for the second to last sentence of subparagraph (i) of

paragraph (4) of subdivision (b) of section eleven hundred one. An

application for the refund or credit provided for herein must be filed

with the commissioner of taxation and finance within the time provided

by subdivision (a) of section eleven hundred thirty-nine. Such

application shall be in such form as the commissioner may prescribe.

Where an application for credit has been filed, the applicant may

immediately take such credit on the return which is due coincident with

or immediately subsequent to the time that he files his application for

credit. However, the taking of the credit on the return shall be deemed

to be part of the application for credit. The procedure for granting or

denying such applications for refund or credit and review of such

determinations shall be as provided in subdivision (e) of section eleven

hundred thirty-nine.

(d) (1) Subject to the conditions and limitations provided for in this

section, a refund or credit will be allowed for taxes imposed on the

retail sale of tangible personal property described in subdivision (a)

of section eleven hundred five of this article, and on every sale of

services described in subdivisions (b) and (c) of such section, and

consideration given or contracted to be given for, or for the use of,

such tangible personal property or services, where such tangible

personal property or services are sold to a qualified empire zone

enterprise or to a qualified entity that is also a tenant in or part of

a New York state innovation hot spot as provided in section thirty-eight

of this chapter or to a business located in a tax-free NY area approved

pursuant to article twenty-one of the economic development law, provided

that (A) such tangible personal property or tangible personal property

upon which such a service has been performed or such service (other than

a service described in subdivision (b) of section eleven hundred five of

this article) is directly and predominantly, or such a service described

in clause (A) or (D) of paragraph one of such subdivision (b) of section

eleven hundred five of this article is directly and exclusively, used or

consumed by (i) such qualified empire zone enterprise in an area

designated as an empire zone pursuant to article eighteen-B of the

general municipal law with respect to which such enterprise is certified

pursuant to such article eighteen-B, or (ii) such qualified entity at

its location in or as part of a New York state innovation hot spot, or

(iii) such business at its location in such tax-free NY area, or (B)

such a service described in clause (B) or (C) of paragraph one of

subdivision (b) of section eleven hundred five of this article is

delivered and billed to (i) such enterprise at an address in such empire

zone or (ii) such qualified entity at its location in or as part of the

New York state innovation hot spot, or (iii) such business at its

location in such tax-free NY area, or (C) the enterprise's place of

primary use of the service described in paragraph two of such

subdivision (b) of section eleven hundred five is at an address in such

empire zone or at its location in or as part of a New York state

innovation hot spot, or at its location in such tax-free NY area;

provided, further, that, in order for a motor vehicle, as defined in

subdivision (c) of section eleven hundred seventeen of this article, or

tangible personal property related to such a motor vehicle to be found

to be used predominantly in such a zone, at least fifty percent of such

motor vehicle's use shall be exclusively within such zone or at least

fifty percent of such motor vehicle's use shall be in activities

originating or terminating in such zone, or both; and either or both

such usages shall be computed either on the basis of mileage or hours of

use, at the discretion of such enterprise. For purposes of this

subdivision, tangible personal property related to such a motor vehicle

shall include a battery, diesel motor fuel, an engine, engine

components, motor fuel, a muffler, tires and similar tangible personal

property used in or on such a motor vehicle.

(2) Subject to the conditions and limitations provided for in this

section, a refund or credit will be allowed for taxes imposed on the

retail sale of, and consideration given or contracted to be given for,

or for the use of, tangible personal property sold to a contractor,

subcontractor or repairman for use in (A) erecting a structure or

building of a qualified empire zone enterprise or a business located in

a tax-free NY area approved pursuant to article twenty-one of the

economic development law, (B) adding to, altering or improving real

property, property or land of such an enterprise or such business, or

(C) maintaining, servicing or repairing real property, property or land

of such an enterprise or of such business, as the terms real property,

property or land are defined in the real property tax law; provided,

however, no credit or refund will be allowed under this paragraph unless

such tangible personal property is to become an integral component part

of such structure, building, real property, property or land located in

an area designated as an empire zone pursuant to article eighteen-B of

the general municipal law in, and with respect to which such enterprise

is certified pursuant to such article eighteen-B, or in an area approved

as a tax-free NY area pursuant to article twenty-one of the economic

development law where such business is located.

(3) Except as otherwise provided by law, the refund or credit provided

for in this subdivision will not apply to taxes imposed by paragraph ten

of subdivision (c) of section eleven hundred five and eleven hundred

seven of this article or to taxes imposed pursuant to the authority of

article twenty-nine of this chapter.

(4) In those instances when the provisions of subdivision (w) of

section nine hundred fifty-nine of the general municipal law are

applicable, no refund or credit will be allowed under this subdivision

unless the qualified empire zone enterprise has been issued an empire

zone retention certificate.

(5) A taxpayer may not apply for a credit or refund under this

subdivision more frequently than once a sales tax quarter, pursuant to

subdivision (b) of section eleven hundred thirty-six of this article.

(6) Any reference in this chapter or in any local law, ordinance or

resolution enacted pursuant to the authority of article twenty-nine of

this chapter to former subdivision (z) of section eleven hundred fifteen

of this article will be deemed to be a reference to this subdivision,

and any such local law, ordinance or resolution which provides the

exemptions described in former subdivision (z) of such section eleven

hundred fifteen shall be deemed instead to provide the refunds and

credits described in this subdivision.

(7) Notwithstanding any other provision in this article, article

twenty-nine of this chapter, or any other law to the contrary, a credit

or refund for any sale or use under this section shall not be allowed to

a person that is first certified under article eighteen-B of the general

municipal law on or after April first, two thousand nine, unless that

sale or use is eligible for a credit or refund of the county or city

sales and compensating use taxes imposed pursuant to the authority of

subpart b of part I of article twenty-nine of this chapter.

(e) Subject to conditions and limitations provided in this

subdivision, a room remarketer shall be allowed a refund or credit

against the amount of tax collected and required to be remitted under

section eleven hundred thirty-seven of this article in the amount of the

tax it paid to an operator of a hotel under section eleven hundred four

of this article, where applicable, and subdivision (e) of section eleven

hundred five of this article. Provided, however, that, in order to

qualify for a refund or credit under this subdivision for any sales tax

quarterly period, the room remarketer must, for that quarter, (1) be

registered for sales tax purposes under section eleven hundred

thirty-four of this article; (2) collect the taxes imposed by section

eleven hundred four of this article, where applicable, and subdivision

(e) of section eleven hundred five of this article; and (3) furnish the

certificate of authority number of the operator to whom the applicant

paid the tax in its application for refund or credit if required on that

form or upon request. Provided that if the room remarketer requests the

operator's certificate of authority number and is not provided with that

number, the room remarketer may satisfy this requirement by providing

the operator's name, business address, telephone number, and the address

of the hotel where the occupancy took place. An application for refund

or credit under this subdivision must be filed with the commissioner

within the time provided by subdivision (a) of section eleven hundred

thirty-nine of this article. The application must be in the form

prescribed by the commissioner. Where an application for credit has been

filed, the applicant may immediately take the credit on the return that

is due coincident with or immediately subsequent to the time that the

applicant files the application for credit. However, the taking of the

credit on the return is deemed to be part of the application for credit.

The procedure for granting or denying the applications for refund or

credit and review of those determinations shall be as provided in

subdivision (e) of section eleven hundred thirty-nine of this article.

An operator, including a room remarketer, who is paid tax by a room

remarketer must upon request provide the remarketer with its certificate

of authority number, provided that the operator's failure to do so does

not change the requirement set forth in paragraph three of this

subdivision.

* (f)(1) Subject to the conditions and limitations provided for in

this section, a refund will be allowed for tax paid pursuant to

subdivision (a) of section eleven hundred five, or section eleven

hundred ten of this article, on the purchase or use of tangible personal

property sold to a participant who has received a certificate of

eligibility in the economic transformation and facility redevelopment

program; provided that such tangible personal property has been used in

constructing, expanding or rehabilitating industrial or commercial real

property located in an area designated as an economic transformation

area pursuant to article eighteen of the economic development law, but

only to the extent that such tangible personal property becomes an

integral component part of such real property. Such tangible personal

property must be purchased, or contracted to be purchased, after the

participant receives its certificate of eligibility and before the

issuance of a certificate of occupancy and it must be used in a manner

consistent with the participant's application for such constructed,

expanded, or rehabilitated real property.

(2) Subject to the conditions and limitations provided for in this

section, a refund will be allowed for taxes imposed on receipts from the

retail sale of, and consideration given or contracted to be given for,

or for the use of, tangible personal property sold to a contractor,

subcontractor or repairman for use in (A) erecting a structure or

building of a participant who has received a certificate of eligibility,

or (B) adding to, altering or improving real property, property or land

of such a participant, as the terms real property, property or land are

defined in the real property tax law; provided, however, no refund will

be allowed under this paragraph unless such tangible personal property

has become an integral component part of such structure, building, real

property, property or land located within an economic transformation

area as defined by article eighteen of the economic development law in,

and with respect to which such participant has been issued a certificate

of eligibility pursuant to such article eighteen and only to the extent

that such property is used in a manner consistent with the participant's

application. Such tangible personal property must be in the contractor's

inventory on or after the day the participant receives its certificate

of eligibility, or be purchased or contracted to be purchased after the

participant receives its certificate of eligibility, but such property

must meet the conditions of the preceding sentence and be used before

the issuance of a certificate of occupancy for such constructed,

expanded, or rehabilitated real property.

(3) Notwithstanding any other provision of law, the refund provided

for in this subdivision shall not apply to the taxes imposed by section

eleven hundred seven or eleven hundred nine of this article or to any

tax imposed pursuant to the authority of article twenty-nine of this

chapter.

(4) Notwithstanding any other provision of law, where the tax on the

sale or use of such tangible personal property has been paid to the

vendor, to qualify for such refund, such tangible personal property must

be incorporated into real property and used as required in paragraphs

one and two of this subdivision within three years after the date such

tax was payable to the commissioner by the vendor pursuant to section

eleven hundred thirty-seven of this article. Where the tax on the sale

or use of such tangible personal property was paid by the applicant for

the refund directly to the commissioner, to qualify for such refund,

such tangible personal property must be incorporated into real property

and used in the manner described in paragraphs one and two of this

subdivision within three years after the date such tax was payable to

the commissioner by such applicant pursuant to this article. An

application for a refund pursuant to this section must be filed with the

commissioner within the time provided by subdivision (a) of section

eleven hundred thirty-nine of this article. Such application shall be in

such form as the commissioner may prescribe. This application will be

the only means of applying for the refund allowed by this section; the

applicant may not take this refund in any other manner, including the

taking of a credit on any return due pursuant to section eleven hundred

thirty-six of this article. A taxpayer may not apply for a refund under

this subdivision more frequently than once a sales tax quarterly period

as described in subdivision (b) of section eleven hundred thirty-six of

this article.

(5) The terms "participant", "economic transformation area", and

"certificate of eligibility" shall have the same meaning as those terms

have in section four hundred of the economic development law.

* NB Repealed December 31, 2026