PA sales tax question - NY government buyer

[schirallicpa]

I would think that a NY government office would be exempt from sales tax on a PA purchase, but the PA vendor won't give the exemption.  So I am wondering if there is a form that the PA vendor wants, or if the NY buyer has to register somewhere.  It's a significant amount of money, so I am wanting to follow up on this.  Is anyone on this board familiar?

 

[PapaJoe]

You'd think an interstate sale would be exempt from sales tax.

[jklcpa]

https://www.pacode.com/secure/data/061/chapter32/chap32toc.html

Quote

§ 32.5. Multi-state sales.

 (a)  Transactions where delivery is made to locations within this Commonwealth. Where delivery of taxable property or services is made to locations within this Commonwealth, the transactions shall be subject to tax. Delivery in this Commonwealth to a nonresident purchaser does not make the transaction exempt.

 (b)  Transactions where delivery is made to locations outside this Commonwealth. When tangible personal property is sold, leased or serviced within this Commonwealth and the vendor, lessor or serviceperson is obligated to deliver it to a point outside of this Commonwealth, or to deliver it to a carrier or to the mails for transportation to a point outside this Commonwealth, sales tax does not apply. However, where tangible personal property under a sale, lease or service is delivered in this Commonwealth to the buyer or lessee or their agent, other than an interstate carrier, the tax applies, notwithstanding that the buyer or lessee may subsequently transport the property out of this Commonwealth.

^ that came directly from the PA code found on this page:  https://www.pacode.com/secure/data/061/chapter32/chap32toc.html

ETA - the link I provided first was incorrect, now fixed. Sorry, I had too many tabs opened at once.

Edited October 30, 2018 by jklcpa
fixed incorrect link!

[jklcpa]

PA does have a sales tax exemption certificate application (Rev 72) for certain organizations to apply for exemption, but it doesn't seem to apply to municipal or gov't offices outside of PA but you should take a look at it.  The actual exemption certificate itself is Rev-1220 that you can also take a look at too. 

I think the shipping address to an address outside of PA should cover it.  There is that provision that says if the goods go to an intermediate agent within PA first though, then the goods are subject to tax.

Do you know the exact reason given by the vendor for balking?

 

[schirallicpa]

no - I don't know why, but it's a town superintendent buying from a local gravel pit, in nowheresville PA - if that sheds any light.

 

[Catherine]

He's digging for any dirt he can find?