||Procurement & Contracting
||Date Last Updated:
||Sales and Compensating Use Tax Documentation
This bulletin identifies the documentation that must be submitted to the Office of the State Comptroller's (OSC) Bureau of Contracts to satisfy Tax Law Section 5-a, which was added to the Tax Law under Part N of Chapter 60 of the Laws of 2004.1 This law imposes upon certain contractors the obligation to certify whether or not the contractor, its affiliates, its subcontractors and affiliates of the subcontractors are required to register to collect state sales and compensating use tax. Where required to register, the contractor must also certify that it is, in fact, registered with the Department of Taxation and Finance (DTF). The law prohibits the Comptroller, or other approving agency, from approving a contract awarded to a vendor meeting the registration requirements but who is not so registered in accordance with the law.
NOTE: Contracting agencies should visit the DTF website at http://www.tax.ny.gov to obtain the following resources which provide specifics as to the law's requirements:
- Publication 222, Questions and Answers Concerning Tax Law Section 5-a
- Form ST-220, Contractor Certification
- Frequently Asked Questions
- Covered Agency Procedures Document
|Applicability of Tax Law Section 5-a2
Tax Law Section 5-a applies to all contracts in excess of $15,000 for the sale of goods or services as defined in Article XI of the State Finance Law and/or tangible personal property or taxable services as defined by the Tax Law. NOTE: Tax Law Section 5-a exempts certain emergency procurements. Please see the DTF website for detailed information regarding exemption from compliance.
|Effective Date of Tax Law Section 5-a
Tax Law Section 5-a became effective on August 20, 2004, but only impacts procurements initiated on or after January 1, 2005.2
|Contractor Certification Form and Certificate of Authority
Pursuant to Tax Law Section 5-a, contractors will be required to complete and sign, under penalty of perjury, the Contractor Certification Form ST-220.3 Contractors must also submit a copy of the Certificate of Authority, if available, for itself, any affiliates, any subcontractors and any affiliates of subcontractors required to register to collect state sales and compensating use tax.4 If Certificates of Authority are unavailable, the contractor, affiliate, subcontractor or affiliate of subcontractor must represent that it is registered and that it has confirmed such status with DTF.
|Contracting Agency Submissions
Contracting agencies must include in all contract packages submitted to OSC for approval, the original Contractor Certification Form ST-220 and one copy of each Certificate of Authority or representation of registration as appropriate. Contracting agencies are also required to send a copy of the certification form directly to DTF.
Questions regarding scope and applicability of Tax Law Section 5-a should be directed to:
Department of Taxation and Finance
Taxpayer's Contact Center
Questions regarding the submission to OSC of required documentation to OSC should be directed to the Bureau of Contracts at the appropriate telephone number listed below:
Commodities and Construction:
1 The law was amended in 2006, and those amendments result in different rules to be applied, and new and different forms to be used relative to procurements initiated on or after January 1, 2005, where the contract award occurs on or after April 26, 2006. Those changes are addressed in a separate bulletin, G-222A, which supplements but does not replace this Bulletin G-222.
2 Tax Law Section 5-a was amended effective April 26, 2006. All procurements involving contracts awarded, amended, extended, renewed, or assigned on or after April 26, 2006, may be subject to amended Tax Law Section 5-a. Please refer to Bulletin G-222A for further information.
3 The Contractor Certification Form ST-220 is required for all contracts submitted to the Office of the State Comptroller for approval. This form includes a check-off to allow the contractor to identify those instances where Tax Law Section 5-a does not apply.
4 The certification and copies of the Certificate of Authority or representations of registration, if applicable, are to be incorporated into the contract.