§ 19-03 Exemption Certificate; Obligations of Individual Residents and Vendors.
RCNY § 19-03
(a)To apply for an exemption certificate, a completed application, on a form prescribed by the Commissioner of Finance, must be filed with the Commissioner of Finance at the address designated on the form.
(b)An exemption certificate will remain effective for a period of up to two years from the date of issuance of the certificate and will expire on the date designated thereon by the Commissioner, unless voided earlier because of a change of parking location or primary residence, sale or transfer of the vehicle for which a certificate was issued or other reason for loss of eligibility for exemption (e.g., using vehicle for business purposes).
(c)A certificate will be issued with respect to a specific motor vehicle and a specific parking location only. If an individual resident sells or transfers the vehicle for which a certificate was issued, changes parking location or primary residence, the certificate becomes void and application must be made for a new certificate.
(d)The exemption certificate must be submitted to the vendor at the principal location for the parking, garaging or storing of a motor vehicle. A vendor is required to collect the additional parking tax on receipts from parking, storing or garaging a motor vehicle received prior to the date that the certificate is submitted for such vehicle. Receipts for the service of parking, garaging or storing a vehicle on a monthly or longer term basis paid to a vendor by an individual resident on or after the date that the resident submits an exemption certificate to the vendor will be exempt from the additional 8% tax to the extent that such receipts are for such services rendered on or after the first day of the month in which the exemption certificate is issued to the resident.
(e)(1) If an individual resident, because of change of residence, or commercial use of the motor vehicle, or for any other reason, loses eligibility for exemption after receiving a certificate, he or she is required to immediately notify both the vendor and the Department of Finance in writing.
(2)A vendor who receives notification from an individual resident or the Department of Finance that the individual resident no longer qualifies for exemption from the additional 8% tax must collect the additional parking tax on all receipts for parking, garaging or storage services rendered to that individual resident that the vendor receives on or after the date on which the vendor received such notification, unless and until the individual resident subsequently submits a new exemption certificate to the vendor.
(f)A vendor is required to retain all certificates, which must be offered for inspection and examination at any time upon demand by the Commissioner of Finance or his duly authorized agents or employees. A certificate shall be preserved for a period of three years from the due date of the return on which the vendor reports the tax for the last effective month of such certificate, except that the Commissioner may consent to the destruction of the certificates within that period or may require that they be kept longer. Examples: Example 1:T is an individual resident. T garages a motor vehicle on an annual basis near T's primary residence. Payment for the garaging service is required monthly. The monthly payment period begins on the first day of the month, but T has until the 15th day of the month to pay for the garaging service. T applies for an exemption certificate, which is issued to T on October 10th. The exemption is effective for payments made to the vendor on or after the date on which T submits the certificate to the vendor with respect to parking, garaging or storing services rendered on or after October 1. If T pays for the garaging service on October 11th and submits the certificate on October 12th, the entire amount paid on October 10th is subject to the additional 8% parking tax because the vendor received the payment before T submitted the certificate. Example 2:The facts are the same as in example (1), except that T submits the certificate and payments for September and October to the vendor on October 13th. The payment for October is exempt from the additional 8% parking tax because T paid the vendor on or after the day that T submitted the certificate to the vendor, and the certificate is effective as of the first day of the month in which issued. However, the payment for September is subject to the additional 8% tax because it applies to services rendered prior to October 1, the effective date of the certificate, even though the vendor received payment for September with the exemption certificate.
