any NYS sales tax experts on this forum

[schirallicpa]

I have a client that does linens and rugs for companies.  Trying to figure out if sales taxable.  He says no, and he says the auditor agreed with him. but told him he should pay tax on purchase of linens.  I think he should collect on his sales.  

 

[FDNY]

He may be making the argument that his sales are not retail and the product will be used for resale, if that is the case.

[Patrick Michael]

If the products are for resale the seller should make sure he has a resale certificate from the buyer. The resale certificate can be accepted at face value by the seller and shifts the burden of proof to the buyer in case of an audit.

[schirallicpa]

Client is getting audited by NYS sales tax. He provides resale cert to vendor and does not pay sales tax on purchase of linens, rugs, etc. He then makes contracts with hospitals, restaurants, nursing homes, etc to provide and exchange linens and rugs.  So, in essence, his customers are renting the products from week to week.  He claims that the NYS auditor told him that he did not have to collect sales tax.  And he somehow construes that this is because they are long term contracts.  I think he has to collect and remit sales tax on almost all of his customers, except the govt offices that he does.  Rent of tangible personal property in NYS is sales-taxed. And then he claims that the auditor is assessing tax on his purchases from vendors, not on his sales.  I can't seem to find any logic in what he is telling me.  Just wondered if there was any validity in his story, and if any one on the forum had any other thoughts.