GNYADA April 2016 Newsletter

NYS Sales Tax — How to Determine Residency 10

ing a DTF-820 form (Certificate of Non-Residency of New York State and/or Local Taxing Jurisdiction). If a customer does not complete this form and subsequently feels they were taxed in error, they can go online to tax.ny.gov and apply for a refund of overpaid sales tax. It’s important to pay attention to the various definitions of residency. Dealers are advised to consult their accountants or tax professionals and take precautions to avoid disastrous tax consequences. For any further questions about when to collect New York State sales tax, or which other states are reciprocal with New York — meaning they’ll grant double-taxed individuals a credit for sales tax paid in New York — call DMV-DIRECT: 718.747.0400.

sales tax should be collected.

New York dealers are legally required to collect New York State sales tax in any transaction where the customer maintains a “place of abode” in New York. Failure to do so — particularly if there is a long-run- ning pattern of non-collection — can incur drastic financial penalties. For this reason, dealers should be aware of circumstances where a cus- tomer's residency status requires NYS sales tax to be charged. According to the NYSDTF’s Publication 838 — A Guide for Sales Tax for Automobile Dealers — an individual’s “place of abode” can be established in a number of ways:

Customers can be considered NY residents if they maintain vacation homes here, or even if they keep mobile in-state residences, such as a trailer or houseboat. Students attending college out-of- state still qualify as NY residents, as do military members stationed out-of-state. New York State sales tax must also be collected when a vehicle is being registered to a business in New York. If a corporation is incorporated under the laws of New York, it qualifies as a New York business. Customers who claim not to reside — even partially — in New York State must confirm this by complet- n n

If a customer wants to register their vehicle in another state but still holds a NY driver’s license,

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Thank You for Your Commitment to GNYADA 11 We’d like to thank all members who renewed their membership for 2016! able to secure the following legisla- tive wins, in the past year alone: Among the Association’s many annual goals, our number one

priority remains to support, promote and advocate for your interests, all year round. We thank you again for your decision to renew, and we anticipate a produc- tive and prosperous 2016 for both GNYADA and its great members. If you have questions about your benefits, please don’t hesitate to contact the Association at

We’re proud to report that 95% of our members have renewed. We value the opportunity to grow each of these important relationships, and we look forward to strengthening our services and support as GNYADA moves into its 106th year. Our ability to maintain an engaged and devoted membership has direct impact on our strategic presences in Albany and Washington. By keeping the dealer’s voice strong, we’ve been

Assuring Congress’s passage of the “Reforming CFPB Indirect Auto Financing Guidance Act” Brokering New York State’s first ever incentive program for selling ZEVs Moving the State closer to imple- menting electronic MV-50s Defending the Franchise System against threats from both manufac- turers and “popup” sellers circum- venting the dealer model And more

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718.746.5900 or via email at membership@gnyada.com .

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • April 2016

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