New York State Requires That Sales Tax Liability be Reported on
Your State Income Tax Form

There is an item on all New York State tax forms (line 59 on the resident IT 201, line 56 on the non-resident IT 203) that requires filers to enter either zero or a number that represents the amount of New York State sales tax owed for goods and services purchased in other states, or purchased over the internet, and used in New York State.

The line cannot be left blank!

By law, New York State tax filers must pay state sales or use on tax-free goods purchased out of state. On items bought in other states or countries with lower tax rates, the purchaser owes New York the difference.

New York is one of 19 states to add lines on tax forms relying on the honor system to collect taxes on goods bought on the Internet, through mail order houses or from businesses in other states.

Instructions for completing line 56 may be found on page 36 of the IT-203 instruction booklet. If you believe that you have made no purchases out side of New York State during 2013, you may enter "zero" on line 56. Or, you can make use of a Sales and Use Tax Chart that recommends a specific amount based on your adjusted gross income (line 18 Federal Amount Column). For example, a person with an adjusted gross income of up to $15,000 would report a tax amount of $8.00 on line 56, using the Sales and Use Tax Chart.

Last Updated: 8/28/14