The purchase by a Florida limited liability company from a New York-based art dealer of a sculpture created in Germany, which the purchaser first loaned to a tax-exempt museum in New York City before having it delivered in Florida, is not subject to New York State and local sales tax. Advisory Opinion, TSB-A-16(17)S (N.Y.S. Dep’t of Taxation & Fin., May 2, 2016). The Department of Taxation and Finance concluded that where the purchaser authorized the museum to retrieve the sculpture from the fabricator in Germany, and the museum contracted with a contract carrier (and not a common carrier) to do so, physical possession was deemed to take place in Germany. In addition, no sales tax was due on the purchaser’s loan of the sculpture to the museum, because the museum took delivery outside New York State.
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Purchase of Sculpture in Germany Initially Loaned to an Exempt Museum in New York City is Not Subject to Sales Tax
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