NYS Sales Tax on Cargo Van

go4gusto · Aug 31, 2007

I am preparing to purchase a new cargo van (maybe more than one). Can anyone tell me, for sure, what the deal is on Sales Tax. I will be purchasing from a dealer but the dealer is unfamiliar with this specific issue. I do not want to rely on the dealer only to research it because he may just blow it off as too much trouble and give me the easy answer for him (you owe tax). Or worse, not charge me tax to secure the deal and get a nice surprise from the state later on.

I have heard that Interstate Vehicles are exempt but cannot find two people to give me the same answer with regards to cargo vans and the requirements.

I am leased to Panther and have a copy of the Letter of Intent with Panther's PUCO, ICC and Tax Exempt Number. The recruiter seems to think it will work but does not know the details for New York. If anyone knows the rules and procedures for New York State, I would be very grateful for the info. Searches of the state website have not helped.

I have applied for a refund of my Sales Tax from my last cargo van purchase but will not know the results for a few weeks. I need the info to make the new purchase much sooner.

Thanks and Good Fortune.
Dan

x06col · Aug 31, 2007

Well Dan the van, why don't you ask the wunnerful beauracrats there in lovely NY, what documents THEY need for your tax exemption? Good place to start. THEN you'll have it from the horses mouth steada some horses a$$>

greg334 · Aug 31, 2007

I thought Vans were exempt from the exemption that you can take with trucks?

Well at least in Michigan.

Wingnut · Aug 31, 2007

You can call NY DMV at: (518)457-6391 or visit their website at:
new-york-dmv.us

You'll then get the answers that you need right from the horse's mouth instead of relying on a dealer who might steer you in the wrong direction.

It seems odd to me that a dealer wouldn't know the proper protocal regarding this matter. Hope the info helps!!

dhalltoyo · Sep 2, 2007

Ditto!

Check with your State Department of Taxation.

Never depend on the F & I Manager at the dealership. Generally speaking, they do not have a clue about commercial usage and sales tax exemptions. Why? The majority of their sales are noncommercial; they sell cars and trucks for personal use.

I always get a tax exempt form from the Title Bureau and a copy of Ohio's Code long before we get to the signing date. You have to give them advance notice so there are no problems at delivery.

Ohio's Tax Exempt Code reads as follows:

Motor vehicles and parts used for transporting tangible personal property by persons engaged in highway transportation for hire.

If any sale of a motor vehicle, off-highway motorcycle, or all-purpose vehicle is claimed to be exempt from the sales tax on the basis that the sale is in interstate commerce, the clerk of courts shall refuse to issue a certificate of title unless the application is accompanied by a statement of fact regarding the sale. A form not required to be prescribed by rule is available for use as a statement regarding sale of a motor vehicle, off-highway motorcycle, or all-purpose vehicle in interstate commerce. The form is not prescribed by or a part of this rule. The form may be obtained from the department of taxation and is available on the department's web site. The form may be reproduced as needed.

JohnO · Sep 4, 2007

Rev good advice

go4gusto · Sep 4, 2007

Thank you all for the input.

I would just like to emphasize that I have already talked to people at the DMV and state. I get conflicting answers and the forms are somewhat ambiguous. It's kind of like the IRS. Nobody knows all the answers or they don't care to find out for sure.

I had a friend of mine (that bought a straight truck) go right to the state capitol in person over this issue with her straight truck and was told she couldn't do it, until another bureaucrat overheard and corrected the problem for her. Very frustrating.

That is why I was hoping to find someone on here that has already had success in registering a cargo van as tax exempt in NYS for purposes of Interstate Commerce.

I will try to follow the suggestion about securing the state code. It's a good one. I will try and weed it out of the downtown law library today.

I would like to have my ducks lined up correctly the first time.

Thanks again,
Dan

terryandrene · Sep 4, 2007

go4gusto: Allow me to add to the confusion you face with the bureaucracy.

Frank Katz, our Tax Forum Guru, has demonstrated to us van owners that, since we are leased to a carrier, we are considered not for hire. This determination has allowed us to use the very advantageous IRS Standard Mileage Allowance in lieu of the actual expense and depreciation deductions.

The Reverend Hall has excerpted the MI tax code defination of tax exempt trucks as being those engaged in transport for hire. Therein may lie a problem if the Michigan left hand ever checks to see what the right hand is doing.

nobb4u · Sep 4, 2007

Are you purchasing the vehicle in New York and taking delivery in New York? Because if you are then you must pay sales tax. If you take delivery outside the state of New York of a vehicle no matter the kind or size and use it for interstate transportation then it is tax exempt. Hope this helps, I have used this exemption on all my vehicles. I have a CR unit registered in New York.

Number 7 on the form is what you would be using.

http://www.nydmv.state.ny.us/forms/dtf803_01.pdf

go4gusto · Sep 4, 2007

nobb4u

I think you have struck on the heart of the matter.

It brings up a couple of other questions.

1. If I take possession in another state, does it have to be registered in that state to qualify for NY Sales Tax exemption?

2. Would I have to pay sales tax to the state that I take possession in? Of course, that would defeat the purpose.

3. Also, please excuse my ignorance but what is a CR?

Thanks for the help.
Dan

terryandrene · Sep 4, 2007

CR = a small straight truck with a reefer box.

C trucks are generally classified as those that tote up to 5000# of freight

fastman_1 · Sep 4, 2007

My story: I bought my Van at a Dealer in Maryland, I live in Ohio, I paid no sales tax In Maryland But Did in Ohio when I got Plates for it.

Owner/Operator since 1979
Expediter since 1997
B Unit Semi Retired
Somedays are Diamonds and Somedays are Stones
Home is Wherever you Park.
The Price of Freedom is Written on the Wall.

nobb4u · Sep 4, 2007

I don't know how other states work with their sales tax on this size vehicle, but I do know that when I took delivery of my commercial truck in Ohio I had a transport permit (obtained by Ohio dealer from state of Ohio) to get it back to New York where I then licensed and titled it in New York. If you buy a van from a dealer in another state I don't know how each state looks at the deal, but if they don't make you pay sales tax in that state then when you go to register it in NY and you took delivery outside of NY you would not have to pay the sales tax to NY state.

spudhead911 · Sep 4, 2007

Hi Nobb your one smart cookie, I know a person who went to the IRB in Albany NY and wouldn't leave until they gave her the exemption.

spudhead911

dhalltoyo · Sep 5, 2007

Terry,

You are 100% on the Not-For-Hire aspect.

The first paragraph from the Ohio Tax Code does not apply to us. I copied that in error. It is the second portion of the Tax Code that allows the exemption in Ohio.

Again, you have to go to the Title Bureau and get the Exemption Form before you take delivery of the van.

Fastman, my friend bought his van just before I got into expediting. His sales person never even sold a cargo van before, but he had sold my friend a few cars and a pickup truck. Yes, he is an OK guy, but just like most F & I Managers and regular sales folks, they know nothing about the Tax Exempt Status for commercial vehicles. In fact, this makes my second van and I had to remind my commercial account sales person not to add the tax. First, he said, "Uh, I have to add the tax." Second, I asked him to go and pull the deal jacket from my last purchase and review the paperwork. Next, he said, "Oh, OK, I see it now."

It is a whole different story when you go to Freightliner, or any other Straight Truck and Tractor dealer. They know the rules surrounding commercial truck tax exemptions.

Unfortunately, vans are sold by car dealers.

nobb4u · Sep 5, 2007

You got to do what you got to do!!!!!!!!!!!!!

dhalltoyo · Sep 5, 2007

Again, you have to go to the Title Bureau and get the Exemption Form before you take delivery of the van, or before you go into the BMV to buy plates.

Fastman, my friend bought his van just before I got into expediting. His sales person never even sold a cargo van before, but he had sold my friend a few cars and a pickup truck. Yes, he is an OK guy, but just like most F & I Managers and regular sales folks, they know nothing about the Tax Exempt Status for commercial vehicles. In fact, this makes my second van and I had to remind my commercial account sales person not to add the tax. First, he said, "Uh, I have to add the tax." Second, I asked him to go and pull the deal jacket from my last purchase and review the paperwork. Next, he said, "Oh, OK, I see it now."

It is a whole different story when you go to Freightliner, or any other Straight Truck and Tractor dealer. They know the rules surrounding commercial truck tax exemptions.

Unfortunately, vans are sold by car dealers.