Sales Tax Exemptions for New York Industrial Development Agencies
- Mar 20, 2014 | Gail Cole
A technical memorandum recently issued by the New York State Department of Taxation and Finance highlights changes to the way sales tax exemption benefits pertain to Industrial Development Agencies and Authorities (IDAs).
Changes are due to recently enacted legislation (Chapter 59 and Chapter 304 of the Laws of 2013) and address the following:
- New recordkeeping and reporting requirements;
- New requirements related to the recapture of certain sales tax exemption benefits; and
- Limitations on providing sales tax exemption benefits to certain retail sales projects or facilities.
TSB-M-14(1.1)S reminds that IDAS “are exempt from the payment of sales tax on all of their purchases….” Purchases made by an agent (business, developer, contractor or subcontractor) on behalf of IDAs are also subject to an exemption from New York sales tax, provided the IDA properly completes and remits form ST-60 within 30 days of the appointment of such an agent.