§ 1214. Certain sales of motor vehicles and vessels: proof required for registration of motor vehicles and vessels. (a) (1) Except as provided in paragraph three of this subdivision, where a sale of a motor vehicle or vessel, including an agreement therefor, is made in any city, county or school district to a nonresident thereof, such sale shall not be subject to tax by such city, county or school district, despite the fact that such motor vehicle or vessel is delivered to the purchaser within such jurisdiction, provided the purchaser furnishes to the vendor, prior to taking delivery, proof satisfactory to the commissioner that the purchaser:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(i) is a nonresident of the jurisdiction in which the sale is made,

(ii) has no permanent place of abode within such jurisdiction,

(iii) is not engaged in carrying on in such jurisdiction any employment, trade, business or profession in which the motor vehicle or vessel will be used in such jurisdiction, and such other proof as the commissioner may require to ensure proper administration of the taxes imposed under the authority of sections twelve hundred ten and twelve hundred eleven of this article.

(2) However, if such purchaser resides in a city, county or school district imposing a tax on the use of such motor vehicle or vessel, the vendor shall be required to collect from such purchaser, as provided in section twelve hundred fifty-four of this article, the aggregate compensating use taxes imposed by the city, if any, county and school district in which such purchaser resides, for distribution by the commissioner to such taxing jurisdiction or jurisdictions.

(3) Provided, however, the exclusion from tax provided in paragraph one of this subdivision shall not apply where the receipts from such sale would have been excluded from tax pursuant to section eleven hundred seventeen of this chapter but for failure to satisfy either the condition set forth in paragraph two of subdivision (a) of section eleven hundred seventeen of this chapter or the condition set forth in paragraph three of subdivision (a) of section eleven hundred seventeen of this chapter.

(b) A vendor shall not be liable for failure to collect tax on such sale of a motor vehicle or vessel provided the proof furnished to such vendor by the purchaser pursuant to subdivision (a) of this section shows that the purchaser's residence is not in any city, county or school district which imposes a tax on the use of such motor vehicle or vessel, and provided the vendor keeps such proof available for inspection by the commissioner and further provided that such proof is not known by the vendor, prior to making physical delivery of the motor vehicle or vessel, to be false.

(c) For purposes of subdivisions (a) and (b) of this section, the term:

(1) "Motor vehicle" shall include a motor vehicle as defined in § 125 of the vehicle and traffic law and a trailer as defined in § 156 of the vehicle and traffic law.

(2) "Vessel" shall (i) include a vessel as defined in § 2250 of the vehicle and traffic law, including any inboard or outboard motor and any trailer, as defined in § 156 of the vehicle and traffic law, sold with the vessel for use with such vessel; (ii) but not include a vessel weighing two hundred pounds or less, inclusive of any mast and sail or other rigging, which is not equipped with a motor and which is exempt from registration under paragraph (g) of subdivision one of § 2252 of the vehicle and traffic law.

(d) The commissioner of motor vehicles shall not issue a registration certificate, except in renewal of registration by the same owner, (1) for any passenger motor vehicle not used to carry passengers for hire, any snowmobile, as defined in § 2221 of the vehicle and traffic law, trailer, as defined in § 156 of the vehicle and traffic law, vessel, as defined in section twenty-two hundred fifty of such law, or all terrain vehicle, as defined in section twenty-two hundred eighty-one of such law, which is owned by an individual whose residence is within any city or county imposing the taxes authorized by subdivision (a) of section twelve hundred ten of this article, or (2) for any motor vehicle, snowmobile, trailer, vessel or all terrain vehicle except as provided in paragraph one of this subdivision, owned by a person whose residence or business address is within any such city or county, except upon proof, in a form approved by the commissioner and the commissioner of motor vehicles that any tax imposed by such city or county with respect to the sale of the motor vehicle, snowmobile, trailer, vessel or all terrain vehicle to the registrant or his use thereof has been paid, or that no such tax is due.