GNYADA March 2014 Newsletter

Income Tax Residency Rule

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centage of total repair costs the deal- er will pay. In New York, state and local con- sumer protection agencies enforce the Used Car Rule, so don’t wait for the “feds” to come around to see if you’re in compliance. To make compliance easier, GNYADA has Buyers Guides avail- able. Call 718.746.5900 to order your Guides (in English or Spanish). property is not enough to find the taxpayer has a permanent place of abode. This ruling does not necessarily sig- nal any change with regard to sales tax. Dealers should continue to col- lect NY sales tax on vehicle purchas- es where the buyer has a connection to the State, such as a driver’s license or a permanent place of abode regardless of the amount of time it is used, until the Court or the Tax Dept. rules otherwise.

As a result, the FTC has begun an enforcement action against that deal- ership and two owners for violating the Used Car Rule. The case is pend- ing in federal court in Arkansas. The Guide must be posted on all used cars that are offered for sale. It offers consumers important infor- mation – such as what is covered by warranties, the general terms of war- ranties, the systems covered, the duration of coverage, and the per- York and are in the state for more than 183 days per year. In this case, a New Jersey resident owned a busi- ness and a multi-family house where his parents lived, both on Staten Island. He occasionally slept there to help care for his elderly father. The Appeals Court overruled the Tax Dept. and said that under those cir- cumstances, the taxpayer did not maintain a permanent place of abode in the state and did not have to pay resident income tax. Merely owning

New York’s highest court, the Court of Appeals, has narrowed the defini- tion of a residency by limiting the application of the “permanent place of abode” language in the statute. This ruling reinterprets the residency rule with regard to New York State (and City) income tax. The Tax Law provides that individu- als will be considered residents if they are either “domiciled” in New York (primary residence) or maintain a “permanent place of abode” in New

13 FTC Looking for Buyers Guide Compliance In 2013, the Federal Trade Commission (FTC) investigated

Arkansas dealers and discovered 11 who were not displaying the “Buyers Guides” that are required under the FTC’s Used Car Rule . It issued warning letters to all the dealers involved. The agency “re-visited” those dealers recently, and found that ten were now complying, but one was still not posting the Guides on used cars.

What To Do When a Dealer Plate is Missing What happens when a dealer plate is missing, lost or stolen? Follow these procedures to get a replacement deal- er plate. File a police report. Visit your Prepare your request to DMV for a replacement dealer plate on dealership letterhead. Your letter must be signed and notarized. Dealers must include the following items: Police report; MV-78B; MV-82; 14 1 3 4 n n n

Bring the documents listed above to your local Department of Motor Vehicles office, vehicle safety division. where a replacement dealer plate will be issued.

local Police Department and file a report for a missing, lost or stolen dealer plate. Obtain a written copy of this police report along with a completed form MV-78B from the police department.

Current insurance card, and Check made payable to the Commissioner of Motor Vehicles.

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

The Newsletter • March 2014 7