Tax & Accounting Blog

New York Use Tax Obligation – not just for businesses

Indirect Tax, Sales Tax Calculation January 19, 2010

The New York State Department of Taxation and Finance released publication 774, Purchaser’s Obligations to Pay Sales and Use Taxes Directly to the Tax Department.  The publication answers commonly asked questions from individuals, estates, and trusts regarding use tax. 

The punchline is that you owe New York state and local sales and use tax if you purchase tangible personal property that is delivered within New York State without payment of the New York State sales tax to the seller.  New York use tax may also be owed by New York State residents that purchase property or services performed on property outside of New York State and bring the property into New York State for use. 

For individuals not registered for sales and use tax purposes, use taxes due should be remitted on the New York State personal income tax return.  Two methods are offered for calculating the amount of tax due – the exact calculation method or by using the sales and use tax chart (for items and services costing $1,000 or less).  For example, a New York resident with 2009 Federal AGI Tax Amount between $75,000 to $100,000 would remit $44 of use tax.  Additional brackets and more information can be found in the New York Use Tax Publication