20 CRR-NY 527.1NY-CRR
20 CRR-NY 527.1
20 CRR-NY 527.1
527.1 Sale of tangible personal property.
Tax Law, §§ 1105(a), 1115(a), 1116, 1132(c)
The sales tax is imposed on the receipts from every retail sale of tangible personal property delivered by the vendor to the purchaser or the purchaser's designee in this State, unless specifically exempt or excluded under the Tax Law.
See Part 528 of this Title for sales of property specifically exempt and used in an exempt manner.
See Part 529 of this Title for exempt organizations.
See Part 534 of this Title for refunds and credits.
(b) Taxable and exempt items sold as a single unit.
When tangible personal property, composed of taxable and exempt items is sold as a single unit, the tax shall be collected on the total price.
A vendor sells a package containing assorted cheeses, a cheese board and a knife for $15. He is required to collect tax on $15.
(c) Coins or other currency.
(1) Currency exchange. The sale of coins or other currency of one nation for that of another ( i.e., an exchange) is a financial transaction and is not a sale of tangible personal property subject to sales or use tax where:
(i) the coins or other currency is exchanged;
(ii) the exchange rate reflects actual currency value; and
(iii) the coins or other currency is in general circulation in the respective nations.
(2) Collecting or investment transaction. The sale of a coin which is legal tender is deemed to be a sale for numismatic, coin collecting or investment purposes and is subject to sales or use tax (unless otherwise qualifying for exemption under section 528.29 of this Title) where the coin:
(i) is not in general circulation;
(ii) is purchased at a price greater than its legal tender value or, in the case of a coin from a foreign country, is purchased at a price greater than the exchange rate; or
(iii) is purchased at a value determined by the precious metal content of the coin.
Mr. Smith buys a foreign coin which is legal tender in a foreign nation and has an exchange rate value of $30 U.S. The foreign coin contains 800 grains of sterling silver valued at $9. The offering advertisement indicated that the coin was a limited, commemorative edition and that the price on buying or selling will vary from the exchange rate. Mr. Smith pays $40 U.S. for the coin. The sale of the coin in New York is a taxable sale of tangible personal property since it is sold at a price greater than the exchange rate.
A foreign nation issues a coin for general circulation. The coin is advertised for sale in New York at its exchange rate ($10 U.S. currency), plus postage and handling charges ($3.75). The advertisement stresses the limited availability and uniqueness of the coin, the fact that the coins sold are in brilliant, uncirculated condition and that the buying and selling rates will reflect service charges and will vary from the exchange rate. The sale of these coins is subject to sales tax because the price paid for the coins of $13.75 is greater than the exchange rate.
A coin dealer purchases a number of uncirculated coin sets from the U.S. Mint and holds them for sale. The dealer subsequently sells the coin sets at a price greater than their legal tender value. The dealer's purchase of the coin sets is not subject to tax as the dealer purchased them for resale. The dealer's subsequent sales of the coin sets to consumers are retail sales of tangible personal property subject to sales or use tax, since the coins are sold at a price greater than their legal tender value.
Mrs. Burns purchases coins from the U.S. Mint. The coins have a legal tender value of $3.35. While the coins purchased are of a denomination and series that are in general circulation, the particular coins Mrs. Burns purchases are uncirculated and are packaged in such a manner as to protect the coins from scratches and other damage. The coins are sold as a set for $10. The sale of these coins is subject to tax because the coins are sold at a price greater than their legal tender value.
See sections 526.5, 526.6, 526.7, and 526.8 of this Title for definitions of receipt, retail sale, sale and tangible personal property.
20 CRR-NY 527.1
Current through November 30, 2020
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