Department of Taxation and Finance
                         New York State and Local Sales and Use Tax
                                                                                                      AU-298(5/16)
                         Application for a Direct Payment Permit

Read the instructions on page 2 before completing.
Legal name (as it appears on the Certificate of Authority) Telephone number                       For office use only
                                                           (     )
Street address                                                                 Permit number
                                                                                                      DP
City, state, ZIP code                                                          Effective date

Sales tax identification number

1 Describe type of business conducted:

2 Attach a statement of facts (see instructions).

Certification: I,                                          , the applicant named above, or partner, officer, or other 
authorized representatives of such applicant, do hereby:
•  request a direct payment permit in order to pay the tax on taxable materials and services directly to the Department of 
Taxation and Finance at the time of use, rather than to the vendor at the time of purchase and to include such payments 
with the quarterly or part-quarterly (monthly) sales and use tax return;
•  certify that a place of business is maintained within New York State;
•  certify that timely returns have been filed and all taxes due have been paid for the four (4) quarterly sales tax reporting 
periods prior to the date of this application; and
•  understand that:
  (a)  taxes must be collected on taxable sales and reported on Forms ST-100, ST-809, or ST-810;
  (b)  a tax status determination of the property or service purchased must be made by the permit holder on the date upon 
which the property or service is used, and tax remitted (where due) for the appropriate period;
  (c)  all substantiating records will be kept in the files for at least three (3) years after the date of the quarterly return to 
which they relate; 
  (d)  a direct payment permit can be revoked upon failure to keep the above records and file timely sales tax returns with 
the payment of the taxes due or for any violation of the New York State Sales and Use Tax Law. I also understand 
that interest and penalty charges will be imposed for failure to make timely payments of all sales and use taxes due;  
and
  (e)  a direct payment permit may not be used:
•  as a device to defer payment of the sales tax on purchases;
•  as a substitute for a resale certificate or other exemption certificates; or
•  as a device to transfer the permit holder’s privileges to another person.

Applicant’s name (print)                                   Title                                  Date

Applicant’s signature

Representative’s signature (if any)                        Representative’s identification number Date

Page 2 of 2  AU-298 (5/16)

                                                          Instructions
General information                                                Where to file your application
A direct payment permit allows eligible businesses to pay sales    Mail this form and all required documentation to:
tax directly to the Tax Department instead of paying tax to a             NYS TAX DEPARTMENT
seller. The permit was designed for businesses that are unable            TFAB – SALES TAX
to determine at the time of a purchase how otherwise taxable              W A HARRIMAN CAMPUS
property or services will be used. For more information, see Tax          ALBANY NY 12227-9340
Bulletin Direct Payment Permits (TB-ST-163). 
                                                                   Private delivery services – See Publication 55, Designated 
Note: A direct payment permit is not the same as a sales tax       Private Delivery Services.
exemption certificate. An exemption certificate allows a business 
to make tax-free purchases that would otherwise be subject 
to sales tax. For more information, see Tax Bulletin Exemption     Privacy notification
Certificates for Sales Tax (TB-ST-240).                            New York State Law requires all government agencies that
                                                                   maintain a system of records to provide notification of the legal 
                                                                   authority for any request, the principal purpose(s) for which the 
Eligibility                                                        information is to be collected, and where it will be maintained. 
To be eligible for a direct payment permit, a business must:       To view this information, visit our website, or, if you do not 
•  be registered for sales tax purposes;                           have Internet access, call and request Publication 54, Privacy 
•  maintain a place of business in New York State;                 Notification. See Need help? for the Web address and telephone 
                                                                   number.
•  have filed all required returns and paid all taxes due on time 
for the four preceding sales tax quarters immediately prior 
                                                                    
to applying for the permit (an exception applies to a new           Need help?
business that has not yet filed returns); and
•  be unable to determine at the time of purchase how otherwise           Visit our website at www.tax.ny.gov
taxable property or services will be used.                                •  get information and manage your taxes online
The Tax Department will issue a specifically numbered direct              •  check for new online services and features
payment permit to an approved business for use when making 
qualifying purchases. If an application is not approved, the          Telephone assistance
business will be notified by mail.
                                                                    Sales Tax Information Center:                   (518) 485-2889
Note: Approved businesses must file quarterly or (if required)      To order forms and publications:                (518) 457-5431
part-quarterly (monthly) sales tax returns.
                                                                    Text Telephone (TTY) Hotline (for persons with 
Specific Instructions                                                 hearing and speech disabilities using a TTY):  (518) 485-5082
Enter the legal name, telephone number, address, and sales            Persons with disabilities: In compliance with the 
tax identification number at the top of the application. Do not           Americans with Disabilities Act, we will ensure that our 
make any entries in the spaces indicated for permit number and            lobbies, offices, meeting rooms, and other facilities are
effective date.                                                     accessible to persons with disabilities. If you have questions 
                                                                    about special accommodations for persons with disabilities, call the 
Line 1  Describe type of business conducted – Clearly               information center.
describe the type of business conducted.
Line 2  Attach a statement of facts – It must include:
•  the specific reasons a direct payment permit is needed;
•  a description of the method to be used to account for use tax, 
including the types of records that will be kept; 
•  if currently an annual sales tax return filer, a request to be 
switched to a quarterly filing frequency; and
•  any other facts that the applicant would like us to consider as 
a basis for issuing the permit.
Be sure to keep a copy of your completed application for 
your records.