St 123 2014-2025 Form

What is the form ST-123?

The form ST-123, commonly referred to as the "Sales Tax Exempt Certificate," is a document used in New York State to allow certain organizations and individuals to make purchases without paying sales tax. This form is typically utilized by exempt organizations, such as nonprofit entities, government agencies, and certain educational institutions. By presenting the ST-123, the buyer certifies that the purchase is exempt from sales tax under specific provisions of the New York State Tax Law.

How to use the form ST-123

To effectively use the form ST-123, the buyer must complete the document accurately. This includes providing essential information such as the name and address of the purchaser, the reason for the exemption, and the signature of an authorized representative. The completed form should be presented to the seller at the time of purchase. It is important to keep a copy of the ST-123 for record-keeping purposes, as sellers may require documentation to substantiate the tax-exempt status of the transaction.

Steps to complete the form ST-123

Completing the form ST-123 involves several straightforward steps:

• Obtain the form ST-123 from a reliable source, such as the New York State Department of Taxation and Finance website.
• Fill in the purchaser's name and address accurately.
• Indicate the specific reason for the exemption by checking the appropriate box.
• Provide the signature of an authorized representative of the exempt organization.
• Date the form to validate the transaction.

Once completed, the form should be presented to the seller during the purchase transaction.

Legal use of the form ST-123

The legal use of the form ST-123 hinges on compliance with New York State tax laws. The form must be used solely for qualifying purchases that are exempt from sales tax. Misuse of the form, such as using it for personal purchases or for items that do not qualify for exemption, can lead to legal consequences, including penalties and back taxes owed. It is crucial for organizations to understand the specific criteria that qualify for tax exemption to avoid any legal complications.

Examples of using the form ST-123

There are several scenarios in which the form ST-123 may be used:

• A nonprofit organization purchasing supplies for an event that supports its charitable mission.
• A government agency acquiring equipment necessary for public service functions.
• An educational institution buying textbooks for students enrolled in a degree program.

In each case, the purchaser must ensure that the items being bought are eligible for tax exemption under New York State law.

Who issues the form ST-123?

The form ST-123 is issued by the New York State Department of Taxation and Finance. This agency provides the necessary guidelines and instructions for completing the form and understanding the eligibility criteria for tax-exempt purchases. It is important for users to refer to the official resources provided by the department to ensure compliance with current regulations and to obtain the most recent version of the form.