N.Y. Tax Law § 1214: Certain sales of motor vehicles and vessels: proof required for registration of motor vehicles and vessels

§ 1214. Certain sales of motor vehicles and vessels: proof required

for registration of motor vehicles and vessels. (a) (1) Except as

provided in paragraph three of this subdivision, where a sale of a motor

vehicle or vessel, including an agreement therefor, is made in any city,

county or school district to a nonresident thereof, such sale shall not

be subject to tax by such city, county or school district, despite the

fact that such motor vehicle or vessel is delivered to the purchaser

within such jurisdiction, provided the purchaser furnishes to the

vendor, prior to taking delivery, proof satisfactory to the commissioner

that the purchaser:

(i) is a nonresident of the jurisdiction in which the sale is made,

(ii) has no permanent place of abode within such jurisdiction,

(iii) is not engaged in carrying on in such jurisdiction any

employment, trade, business or profession in which the motor vehicle or

vessel will be used in such jurisdiction, and such other proof as the

commissioner may require to ensure proper administration of the taxes

imposed under the authority of sections twelve hundred ten and twelve

hundred eleven of this article.

(2) However, if such purchaser resides in a city, county or school

district imposing a tax on the use of such motor vehicle or vessel, the

vendor shall be required to collect from such purchaser, as provided in

section twelve hundred fifty-four of this article, the aggregate

compensating use taxes imposed by the city, if any, county and school

district in which such purchaser resides, for distribution by the

commissioner to such taxing jurisdiction or jurisdictions.

(3) Provided, however, the exclusion from tax provided in paragraph

one of this subdivision shall not apply where the receipts from such

sale would have been excluded from tax pursuant to section eleven

hundred seventeen of this chapter but for failure to satisfy either the

condition set forth in paragraph two of subdivision (a) of section

eleven hundred seventeen of this chapter or the condition set forth in

paragraph three of subdivision (a) of section eleven hundred seventeen

of this chapter.

(b) A vendor shall not be liable for failure to collect tax on such

sale of a motor vehicle or vessel provided the proof furnished to such

vendor by the purchaser pursuant to subdivision (a) of this section

shows that the purchaser's residence is not in any city, county or

school district which imposes a tax on the use of such motor vehicle or

vessel, and provided the vendor keeps such proof available for

inspection by the commissioner and further provided that such proof is

not known by the vendor, prior to making physical delivery of the motor

vehicle or vessel, to be false.

(c) For purposes of subdivisions (a) and (b) of this section, the

term:

(1) "Motor vehicle" shall include a motor vehicle as defined in

section one hundred twenty-five of the vehicle and traffic law and a

trailer as defined in section one hundred fifty-six of the vehicle and

traffic law.

(2) "Vessel" shall (i) include a vessel as defined in section

twenty-two hundred fifty of the vehicle and traffic law, including any

inboard or outboard motor and any trailer, as defined in section one

hundred fifty-six of the vehicle and traffic law, sold with the vessel

for use with such vessel; (ii) but not include a vessel weighing two

hundred pounds or less, inclusive of any mast and sail or other rigging,

which is not equipped with a motor and which is exempt from registration

under paragraph (g) of subdivision one of section twenty-two hundred

fifty-two of the vehicle and traffic law.

(d) The commissioner of motor vehicles shall not issue a registration

certificate, except in renewal of registration by the same owner, (1)

for any passenger motor vehicle not used to carry passengers for hire,

any snowmobile, as defined in section twenty-two hundred twenty-one of

the vehicle and traffic law, trailer, as defined in section one hundred

fifty-six of the vehicle and traffic law, vessel, as defined in section

twenty-two hundred fifty of such law, or all terrain vehicle, as defined

in section twenty-two hundred eighty-one of such law, which is owned by

an individual whose residence is within any city or county imposing the

taxes authorized by subdivision (a) of section twelve hundred ten of

this article, or (2) for any motor vehicle, snowmobile, trailer, vessel

or all terrain vehicle except as provided in paragraph one of this

subdivision, owned by a person whose residence or business address is

within any such city or county, except upon proof, in a form approved by

the commissioner and the commissioner of motor vehicles that any tax

imposed by such city or county with respect to the sale of the motor

vehicle, snowmobile, trailer, vessel or all terrain vehicle to the

registrant or his use thereof has been paid, or that no such tax is due.