As you know, the Pay-When-Paid Sales Tax Law took effect in 1999 and allows building material suppliers to pay sales tax on qualifying sales when payment has been received, rather than when the transaction occurs. If you choose this option, the tax advantage could allow you to add thousands of dollars to your cash flow.

Pay-When-Paid application (click to download) must be returned to the Department of Revenue Services no later than June 30, 2018.

Submitting your application does not obligate you to use the Pay-When-Paid Sales Tax option, but rather, it reserves your right to use the option until June 30, 2019. In order to qualify, you must check “yes” to all three questions on the application form. If the application is approved, you will receive a confirmation notice along with a permit and reporting instructions from the Department of Revenue.

Special Notice IP 2003(12) (click to download), which contains the State’s guidelines and interpretation of the Pay-When-Paid Law.

Please feel free to contact NRLA Government Affairs at (518) 286-1010 if you have any additional questions.

Special Notice IP 2003(12)

REG-20 Application for a Materialman to Remit Sales Tax Under the Pay-When-Paid Method 2018