New York Tax Law now allows a sales and use tax exemption for natural gas purchased under certain conditions. The exemption applies to sales on or after June 1, 2013. It expires August 31, 2014.
A New York State Department of Taxation and Finance explains the exemption, which applies to “natural gas that is purchased in an uncompressed state and that will be converted into CNG [compressed natural gas] and used or sold for use or consumption directly and exclusively in the engine of a motor vehicle."
In order to claim this new exemption, vendors must receive a properly completed Form ST-121, Exempt Use Certificate (Part 3, Box U), from purchasers. Without this form, sales tax should be charged by the vendor and paid by the consumer.
Should the consumer later convert “all or a portion of the natural gas purchased into CNG for use or consumption directly and exclusively in the engine of a motor vehicle,” the purchaser may use Form AU-11 to file a claim for a refund or credit.
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