New York Tax Exempt Forms: ST-119, ST-120, and ST-121 Explained

New York doesn’t have a single sales tax exemption form. It has several, and the right one depends on who you are and why you’re buying. The main New York tax exempt forms are Form ST-119 (the Exempt Organization Certificate issued to approved nonprofits), Form ST-119.1 (the certificate the nonprofit actually hands to a vendor), Form ST-120 (the Resale Certificate for businesses buying inventory to resell), and Form ST-121 (the Exempt Use Certificate for items used in production or research). Picking the wrong one, or using the right one incorrectly, can trigger a penalty of $50 per document plus 100% of the unpaid tax.¹

The Four Forms and What Each One Does

Form ST-119 is the Exempt Organization Certificate issued by the New York Department of Taxation and Finance after a nonprofit successfully applies. It carries a six-digit state exemption number that is not the same as the organization’s nine-digit federal employer identification number.²

Form ST-119.1, the Exempt Organization Exempt Purchase Certificate, is the one you actually give a vendor at the point of sale. Copies come in the mail with the ST-119, and additional copies must be requested from the Tax Department’s sales tax information center. It is not available for download on the department’s website.²

Form ST-120 is the Resale Certificate. It is used by registered New York sales tax vendors with a valid Certificate of Authority who are buying tangible personal property or services to resell to their own customers. The buyer certifies that the goods will move on to a final customer, so tax gets collected once, at the final sale.³

Form ST-121 is the Exempt Use Certificate. Instead of hinging on who the buyer is, it hinges on how the item will be used. Production machinery, parts and tools consumed in manufacturing goods for sale, and tangible personal property used in research and development are examples. The form itself lists the specific exempt-use categories, and a purchase that doesn’t fit one of them can’t ride on ST-121.⁴

One boundary to note before going further: federal, state, and local government entities are automatically exempt and don’t apply for an ST-119. They present a governmental purchase order or other appropriate exemption document directly to the seller.⁵

Who Qualifies as an Exempt Organization

Tax Law Section 1116(a)(4) covers organizations operated exclusively for religious, charitable, scientific, literary, or educational purposes. It also covers entities that test for public safety, foster amateur sports competition (as long as they don’t provide athletic facilities or equipment), and prevent cruelty to children or animals.⁶

Two conditions in the statute cause the most problems on review. No part of the organization’s net earnings can benefit any private individual, and the organization cannot devote a substantial portion of its activities to lobbying or political campaigns.⁶

Other Section 1116 categories include posts or organizations of past or present members of the armed forces organized in New York, cooperative and foreign corporations operating under the rural electric cooperative law, and certain Indian nations or tribes recognized in the state.

How to Apply for Form ST-119

Applications go to the New York Department of Taxation and Finance. You’ll provide the organization’s federal employer identification number, and the legal name on the application must match exactly what appears on your articles of incorporation, trust agreement, or charter.²

You need to describe your activities in enough detail that the reviewer can match them to a Section 1116 category. Supporting documents like bylaws and a statement of activities help. The application typically asks for officer names and titles and a financial summary showing how the organization earns and spends its money, because the state has to confirm that no net earnings flow to private individuals. Errors and incomplete information can delay approval or cause a rejection.

Subordinate units of a larger organization generally cannot use the parent’s certificate. Individual chapters of a national charity must file their own applications and receive their own numbered certificates. Girl Scout and Boy Scout units are the main exceptions; they can use their parent organization’s certificate.⁷

Using Form ST-119.1 at the Register

Once your ST-119 arrives, copies of ST-119.1 come with it. You hand a completed ST-119.1 to the vendor whenever you make a qualifying tax-free purchase. Three rules govern how it can be used, and the third is the one that most often causes trouble.

The certificate covers purchases for the named organization only. It cannot be used for personal purchases, and no one outside the organization may use it.
The organization must be the direct purchaser of record and the direct payer of record. Payment must come from the organization’s own funds, whether cash or a check, debit card, or credit card belonging to the organization.
An employee or officer cannot pay with a personal check or personal credit card, even if the organization plans to reimburse them. Those purchases are taxable.

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The personal-payment trap is worth stating plainly. A staff member who grabs supplies and pays with a personal debit card owes sales tax on that purchase. A reimbursement the next day does not fix it.²

Purchases the Certificate Doesn’t Cover

Even with a valid ST-119.1, some purchases are still taxable:

Anything bought for the personal use of an officer, member, or employee is taxable no matter who pays.⁷
Most exempt organizations must pay sales tax on motor fuel and diesel at the pump and then file Form FT-500 to claim a refund afterward.⁷
Purchases unrelated to the organization’s exempt purpose don’t qualify. A charitable nonprofit buying equipment for a side business it runs for profit is not covered.

Hotel occupancy is generally exempt when the organization is the direct purchaser and payer. Veterans’ organizations have a narrower exception: an authorized representative can pay for a hotel room with a personal method and be reimbursed if they present a completed Form ST-119.5. That exception does not extend to meals, entertainment, parking, or other services during the stay.⁷

How ST-120 and ST-121 Work in Practice

ST-120 is a resale tool. Any registered New York sales tax vendor with a valid Certificate of Authority can use it when buying goods to resell. The buyer must give the certificate to the seller within 90 days of the purchase; otherwise the transaction is treated as a taxable retail sale.⁸

ST-121 turns on the item’s use rather than the buyer’s identity. If your purchase doesn’t fall into one of the exempt-use categories listed on the form, ST-121 is not the right document, even if you’d like it to be.⁴

Contractors Working on Exempt Organization Property

Contractors, subcontractors, and repairmen can buy materials tax-free when those materials will become a permanent, integral part of a building or other real property owned by an exempt organization. The same treatment applies to materials for maintaining or repairing the organization’s real property.⁷

Tools and equipment the contractor keeps after the job aren’t exempt. Only materials that physically end up in the structure qualify.

Penalties for Misusing an Exemption Form

Misuse is expensive and can be criminal:

$50 per fraudulent document issued, plus 100% of the tax that should have been paid.¹
Criminal prosecution for issuing any exemption certificate known to be false, fraudulent, or materially incomplete, under Tax Law sections 1801 through 1807. Fines and jail time are on the table.¹
Revocation of the Certificate of Authority for registered vendors who misuse resale certificates.³
A fine up to $20,000 and imprisonment for misuse of an exempt organization certificate specifically.²

The penalties apply both to the organization and to the individual who signs and presents the certificate. Using a nonprofit’s certificate to buy personal items is exactly the scenario the penalty structure is aimed at.

Keeping the Exemption in Good Standing

Approval is not the end of the work. Any organization required to file Form 990, 990-EZ, 990-PF, or 990-N that fails to file for three consecutive years automatically loses its federal tax-exempt status under Internal Revenue Code Section 6033(j), and the IRS notes that federal revocation can affect state and local exemption status.⁹

On the state side, New York requires businesses and organizations to keep records and supporting documents for at least three years after filing a return. Keep clean purchase records, copies of completed ST-119.1 forms, and payment documentation so you can prove eligibility during an audit.

Other practices that put your status at risk: using the certificate for personal purchases, letting unauthorized people buy under your exemption number, and failing to tell the Tax Department when the organization’s purpose or structure changes. If activities drift away from the exempt purpose described in your original application, the exemption no longer applies to purchases outside that purpose.

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Department of Taxation and Finance. Sales and Use Tax Penalties
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New York State Department of Taxation and Finance. Sales Tax Exempt Organizations
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New York State Department of Taxation and Finance. ST-120 Resale Certificate
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New York State Department of Taxation and Finance. New York State and Local Sales and Use Tax Exempt Use Certificate
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New York State Department of Taxation and Finance. Purchases and Sales by Governmental Entities
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New York State Senate. New York Tax Law 1116 – Exempt Organizations
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New York State Department of Taxation and Finance. Publication 843 – A Guide to Sales Tax in New York State for Exempt Organizations
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Department of Taxation and Finance. Exemption Certificates for Sales Tax
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Internal Revenue Service. Automatic Revocation of Exemption