Free St 119 1 Exempt Form in PDF

Instructions on Writing St 119 1 Exempt

Completing the ST-119.1 Exempt Purchase Certificate is necessary for entities such as Indiana University to acquire goods or services without being charged sales tax, as permitted by New York, Section 1116(a)(4). This exemption is specifically available for organizations operating exclusively for educational purposes. To ensure the document is correctly filled out and the exemption is properly applied, follow these instructions:

1. Locate the section marked Seller’s Name and Address and provide the required details.
2. Choose between Single purchase certificate and Blanket certificate by marking the appropriate option. A single purchase certificate is used for a one-time purchase, whereas a blanket certificate applies to all qualifying transactions with the vendor for three years.
3. Enter the Name of seller, Street address, City, State, and ZIP code in the respective fields.
4. Fill in the Your exempt organization number space with the exempt organization number issued to your entity by the New York State Tax Department. Note that this is different from your federal employer identification number.
5. In the section titled Name of exempt organization/purchaser, enter the full legal name of your educational organization.
6. Provide the organization’s Street address, City, State, and ZIP code.
7. Confirm that your organization is the direct purchaser and payer of the record. Remember, this form cannot be employed to obtain motor fuel or diesel motor fuel tax exemptions.
8. Review the certification statement carefully. By signing the document, you are attesting to the truthfulness and completeness of the information provided and acknowledging the legal implications of misusing the certificate.
9. The document must bear the original signature of a responsible officer within your organization. For Indiana University, Jill Schunk, Associate Vice President & Director of Procurement Services, is designated to sign this form. Coordinate with her to obtain her signature.
10. Date the form on the day the signing officer endorses it.

After the ST-119.1 Exempt Purchase Certificate is filled out and signed, it should be presented to vendors at the time of purchase or within 90 days following the delivery of the property or services to claim the tax exemption. Proper documentation and adherence to the guidelines will ensure the transactions are processed efficiently and in compliance with New York State tax laws.

What is the New York Exempt Purchase Certificate (Form ST 119.1)?

The New York Exempt Purchase Certificate, Form ST 119.1, is a document used by exempt organizations, such as Indiana University, to purchase tangible personal property or taxable services without paying sales and use tax. This exemption is specifically available because Indiana University is organized exclusively for educational purposes, as outlined in Section 1116(a)(4) of New York's tax laws.

Who can use Form ST 119.1 for tax-exempt purchases?

Only organizations that are exempt from New York sales and use tax and hold a valid Form ST-119, Exempt Organization Certificate, can use Form ST 119.1. The form must be issued by the entity making the purchase, such as Indiana University, which must also be the direct purchaser and payer of record for the purchase.

What are the requirements for a purchase to qualify for this exemption?

To qualify for the exemption, the purchase must be directly invoiced and charged to the exempt organization and must be directly paid by the exempt organization using a check or credit card. All purchases must solely benefit the exempt organization and cannot be used for the personal gain of any officer, member, or employee.

Can Form ST 119.1 be used for all types of purchases?

No, the exemption does not apply to purchases of motor fuel or diesel motor fuel. Additionally, this form cannot be used by representatives of governmental agencies or diplomatic missions to make tax-exempt purchases.

Is it necessary to issue a new certificate for every exempt purchase?

No, it is not necessary to issue a new certificate for every purchase. A blanket exemption claim covered by Form ST 119.1 can be used for all exempt transfers between the exempt organization and the vendor for a period of three years from the date of the first purchase.

How can Indiana University issue Form ST 119.1 to a vendor?

Indiana University must fill out all sections of Form ST 119.1, including the seller’s name and address. The form must have the original signature of a responsible officer from the University. Jill Schunk, the Associate Vice President & Director of Procurement Services at Indiana University, has been designated as the signatory. Vendors should be given the completed and signed form at the time of sale or within 90 days of accepting delivery of the property or rendering of services.

What if the form is used improperly?

Using Form ST 119.1 with the intent to evade paying applicable state and local sales or use taxes is unlawful. Such actions may constitute a felony or other crime under New York State Law, leading to penalties that include substantial fines and possible jail time. The Tax Department is authorized to investigate the validity of tax exclusions or exemptions claimed and the accuracy of information entered on this document.

Where can additional help or information about Form ST 119.1 be found?

For more information or assistance with Form ST 119.1, individuals and organizations can visit the New York State Department of Taxation and Finance website at www.tax.ny.gov. The site offers resources for managing taxes online, including new online services and features. Additionally, specific inquiries can be addressed through telephone assistance provided by the Sales Tax Information Center or by contacting the provided Text Telephone (TTY) Hotline for those with hearing and speech disabilities.

Does the Form ST 119.1 exemption apply to online purchases?

While the document doesn’t specifically address online purchases, the exemption should theoretically apply as long as the purchase meets all other requirements for tax exemption under Form ST 119.1. This means that the purchase must be directly invoiced and charged to, and paid by, the exempt organization in a manner that benefits the organization only. For online purchases, it may be necessary to provide a digital or physical copy of Form ST 119.1 to the online retailer to ensure the exemption is applied.

Filling out Form ST-119.1, the New York Exempt Purchase Certificate, requires meticulous attention to detail. A common mistake is not ensuring that Indiana University is indeed the direct purchaser and payer of record for the transaction. This condition is explicitly stated within the guidelines of the form. Failure to meet this condition invalidates the exemption, as purchases must be directly invoiced and charged to the University and paid directly by it, either by check or credit card.

Another frequently occurring error involves the use of the form for personal benefit. The guidelines are clear that all purchases made using Form ST-119.1 must solely benefit Indiana University and not be for the advantage of any officer, member, or employee of the institution. Misusing the form in this manner not only breaches the terms of the exemption but also could result in penalties.

Some individuals mistakenly believe that a new certificate must be provided to vendors with each exempt purchase. However, the form allows for a blanket exemption claim, which covers all exempt transfers between the University and the vendor for three years from the date the certificate is executed. Not utilizing this feature can lead to unnecessary paperwork and administrative overload.

Moreover, there's often confusion about the scope of items eligible for exemption. The exemption stated on ST-119.1 does not apply to purchases of motor fuel or diesel motor fuel. Those unaware of this condition may attempt to use the form for such purchases, leading to complications and possible accusations of fraudulent use.

Ensuring that the seller’s information is accurately entered is another step that is frequently overlooked. The form requires details such as the seller’s name and address to be filled out in sections highlighted in blue. Incomplete or incorrect information can lead to delays or rejection of the exemption.

Additionally, the importance of the exemption certificate having the original signature of a responsible officer of Indiana University is often underestimated. Designated as the signatory, the Associate Vice President & Director of Procurement Services, or another designated officer, must sign the form. Failure to obtain this original signature can invalidate the entire document.

Lastly, a fundamental error made by individuals is not carefully reading the instructions and other information provided on the back of the Form ST-119.1. This oversight can lead to various mistakes in the completion and use of the form, as key details and conditions are outlined in these instructions. Such an omission not only jeopardizes the tax-exempt status of the purchase but also may expose the individual and the University to legal consequences for non-compliance.

When handling transactions that involve the New York Exempt Purchase Certificate (Form ST-119.1), various other documents and forms may frequently be used alongside it to ensure full compliance and accuracy in transactions exempt from sales and use tax. These documents serve to support or supplement the information and claims made on the ST-119.1, thereby providing a comprehensive framework for tax-exempt purchasing within New York State. Below is a brief overview of five such forms and documents.

• Form ST-119, Exempt Organization Certificate: This certificate serves as proof that an organization is officially recognized by the New York State Department of Taxation and Finance as exempt from state and local sales and use taxes. Organizations must have this certification before they can use Form ST-119.1 for tax-exempt purchases.
• Form W-9, Request for Taxpayer Identification Number and Certification: When an organization applies for exempt status or conducts transactions as an exempt entity, suppliers often request this form to verify the organization’s Taxpayer Identification Number (TIN) or Employer Identification Number (EIN). It’s essential for facilitating the exemption process and ensuring compliance with IRS requirements.
• Form ST-120, Resale Certificate: While not directly related to tax-exempt purchases for organizational use, this form is pertinent for entities that also engage in the sale of goods. If an exempt organization purchases goods intending to resell them, Form ST-120 is used to purchase those goods without paying sales tax at the point of purchase.
• Purchase Order: Accompanying the ST-119.1, a purchase order specifies what is being bought, the quantities, and agreed prices. While not a tax-specific document, it formalizes the transaction and is crucial for record-keeping and audit trails, especially when claiming tax exemptions.
• Invoice: The invoice from the vendor supplies the detailed amounts, descriptions of products or services purchased, and explicitly shows that the transaction was conducted under the exemption claimed by the ST-119.1. It’s fundamental for record-keeping and verifies the exempt transaction.

Using these documents in conjunction ensures that organizations can accurately and efficiently manage tax-exempt transactions. It also provides a robust audit trail that satisfies the requirements of both New York State and federal tax authorities, demonstrating due diligence and compliance in the organization's fiscal operations.

The Certificate of Authority is a document that is quite similar to the ST-119.1 Exempt Purchase Certificate. Both are integral in the process of tax exemption; however, the Certificate of Authority specifically allows a business to collect sales tax on behalf of the state. It is required for businesses selling tangible personal property or taxable services. While the ST-119.1 verifies an organization's exemption status, the Certificate of Authority enables the collection and remission of sales tax to the state.

The Resale Certificate, also known as Form ST-120, serves a purpose similar to that of the ST-119.1 form by allowing the purchaser to buy goods tax-free. However, the key difference lies in its intent. While the ST-119.1 is designed for tax-exempt organizations to purchase goods without paying sales tax for their own use, the Resale Certificate is used by businesses to purchase items without tax for the sole purpose of resale. This helps avoid the double taxation of goods, once when they are purchased and again when they are sold.

The Uniform Sales & Use Tax Certificate-Multijurisdiction form shares similarities with the ST-119.1, as both are used to claim tax-exempt status on purchases. The multijurisdiction form, however, is broader in scope. It's designed for use across multiple states, facilitating tax-exempt purchases by qualifying businesses or organizations in more than one state, whereas the ST-119.1 is specific to New York State.

The ST-121 Exempt Use Certificate is closely related to the ST-119.1 but serves a different specific purpose. While the ST-119.1 allows tax-exempt organizations to purchase goods and services without paying sales tax, the ST-121 is utilized by businesses to purchase items or services that will be used in a tax-exempt manner, according to state regulations. It highlights the niche use case of the purchased items that exempt them from tax, as opposed to the broader exemption status of the purchaser itself.

The Farmers' Exemption Certificate in New York, much like the ST-119.1, offers a tax-exempt purchasing route for a specific group— in this case, farmers. This certificate allows agricultural producers to buy items and services without sales tax, assuming these purchases are directly related to farming activities. While the ST-119.1 covers educational organizations, the farmers’ certificate specifically tailors to the agricultural sector, underscoring the variety of tax-exempt entities recognized by tax laws.

The Streamlined Sales and Use Tax Agreement Certificate of Exemption represents a multi-state approach to tax exemption on purchases, akin to the ST-119.1's function within New York. This certificate allows businesses to uniformly exempt purchases from sales tax across participating states, simplifying the tax-exemption process for interstate commerce. It represents the collaborative efforts of states to streamline tax exemptions, contrasting the ST-119.1's application solely within New York State.

The Government Purchase Order, while not a certificate, operates in a similar tax-exempt domain as the ST-119.1 Exempt Purchase Certificate. When government entities issue these purchase orders, the purchases made are often exempt from sales tax, based on the governmental status of the purchaser. This process underscores the variety of entities - from educational institutions to government bodies - that benefit from tax-exempt purchasing protocols.

The Non-Profit Organization Claims for Sales Tax Exemption, similar to the ST-119.1, caters to non-profit entities seeking tax exemptions on their purchases. These claims verify the non-profit's eligibility for tax-exempt status, allowing them to procure goods and services without incurring the standard sales tax. This document parallels the ST-119.1's purpose in providing a mechanism for tax-exempt purchases, tailored to non-profit organizations and their specific operational needs.

When filling out the ST-119.1 Exempt Purchase Certificate, certain practices should be followed to ensure compliance and accuracy. Here's a comprehensive list of dos and don'ts to guide you through the process:

• Do ensure that Indiana University is the direct purchaser and payer on record for all transactions using this form.
• Do make purchases that are directly invoiced and charged to Indiana University, and directly paid using the University’s check or credit card.
• Do use the form solely for purchases that benefit Indiana University. The form must not be utilized for personal gain of any officer, member, or employee of the University.
• Do remember that the exemption provided by this form does not apply to purchases of motor fuel or diesel motor fuel.
• Do fill out all sections highlighted in blue, which include the seller’s name and address, and ensure the certificate has the original signature of Jill Schunk, or the designated signatory.
• Don't use this form to claim exemption on purchases made for the benefit of an individual officer, member, or employee of the University outside of their professional duties.
• Don't attempt to use this form for transactions involving motor fuel or diesel motor fuel, as these are not covered under the exemption.
• Don't use this form if you are a representative of governmental agencies or diplomatic missions; it is not valid for these entities.
• Don't provide incomplete or false information. Knowingly issuing this document with the intent to evade tax may constitute a serious crime under New York State Law.

By adhering to these guidelines, individuals representing Indiana University can ensure that they remain compliant with New York State’s tax laws and regulations when using the ST-119.1 Exempt Purchase Certificate.

• Misconception 1: The form can be used by anyone connected to Indiana University.
  Only the University itself, acting as the direct purchaser and payer of the record, can utilize Form ST 119.1 for tax-exempt purchases. This means it cannot be used for personal benefits by officers, members, or employees of the University.
• Misconception 2: Form ST 119.1 is required for every exempt purchase.
  A single certificate can cover all exempt purchases between Indiana University and a vendor over a three-year period from the date of the initial purchase. Therefore, it's not necessary to provide a new form for every transaction within this timeframe.
• Misconception 3: The exemption applies to all types of purchases.
  The form explicitly excludes certain purchases from being eligible for tax exemption, notably motor fuel and diesel motor fuel. Therefore, these items cannot be purchased tax-free with the use of Form ST 119.1.
• Misconception 4: Electronic signatures or copies of the form are acceptable.
  The original signature of a responsible officer of Indiana University is required on the exemption certificate. This detail ensures that a physical document, rather than an electronic version, bears the necessary authorized signature for validation.

Filling out and using the New York Exempt Purchase Certificate (Form ST 119.1) correctly is vital for organizations that qualify for sales and use tax exemptions. Here are five key takeaways to ensure that this form is used properly, benefiting both the exempt organization and its vendors:

• Direct Purchase Requirement: form ST 119.1 can only be used when Indiana University makes direct purchases. This means that the University must be the payer and recipient of the purchased goods or services. Transactions must be directly invoiced and paid by the University using checks or credit cards.
• Exclusive Benefit to the University: All purchases made using this exemption form must solely benefit Indiana University. The form is not applicable for personal purchases or for the benefit of any University officer, member, or employee outside their professional capacity within the organization.
• Limited Scope of Exemption: The exemption does not cover all purchases. Specifically, purchases of motor fuel or diesel motor fuel are not eligible for tax exemption under this form. This distinction is crucial to remember to prevent misuse of the exemption.
• Duration of the Exemption Claim: A new exemption certificate does not need to be issued for every purchase. A blanket exemption certificate covers all exempt transactions between the University and the vendor for a period of three years from the date of the initial purchase, streamlining the process for both parties.
• Completion and Certification: It’s essential to complete all sections highlighted in the form and obtain the original signature of a responsible officer from Indiana University. In this case, the designated signatory is the Associate Vice President & Director of Procurement Services, Jill Schunk. This ensures the document is properly authorized and in compliance with New York State regulations.

Correctly leveraging Form ST 119.1 not only facilitates smoother transactions free of sales and use tax for qualifying purchases but also upholds the integrity and compliance of the exempt organization with state tax laws. Understanding these key points helps organizations and vendors navigate the exemptions process efficiently.