Form St 124 PDF Details

Understanding the intricacies of New York State’s ST-124 form is crucial for contractors and customers engaging in capital improvement projects. This form, officially called the New York State and Local Sales and Use Tax Certificate of Capital Improvement, plays a pivotal role in delineating tax responsibilities and exemptions related to such projects. Through its completion and signing by both customer and contractor, it officially classifies the work to be performed as a capital improvement, which carries specific tax implications. This designation means that while contractors are responsible for the tax on purchased building materials, they are not required to collect sales tax on the capital improvement service provided. For the process to unfold smoothly, it is imperative that all involved parties fully understand the obligations: contractors must keep the signed form and provide copies to any subcontractors, ensuring compliance across the board. The clarity provided by this form safeguards both parties by outlining expectations, responsibilities, and the legal underpinnings of the capital improvement’s tax status, thereby preventing potential disputes and penalties related to tax liabilities. Being well-acquainted with the terms, conditions, and proper application of the ST-124 form is essential for anyone involved in capital improvements within New York State, making it an indispensable tool in the completion of such projects.

Form NameForm St 124
Form Length2 pages
Fillable fields0
Avg. time to fill out30 sec
Other namesst 124 certificate of capital improvement, st 124, nys capital improvement form, capital improvement form

Form Preview Example

Department of Taxation and Finance


New York State and Local Sales and Use Tax

Certificate of Capital Improvement



After this certificate is completed and signed by both the customer and the contractor performing the capital improvement, it must be kept by the contractor. Copies of this certificate must be furnished to all subcontractors on the job and retained as part of their records.

Read this form completely before making any entries.

This certificate may not be used to purchase building materials exempt from tax.

Name of contractor (print or type)



Name of customer (print or type)









Address (number and street)



Address (number and street)











ZIP code



ZIP code










Sales tax Certificate of Authority number (if any)









To be completed by the customer

Describe capital improvement to be performed:

Project name










Street address (where the work is to be performed)



ZIP code







I certify that:






• I am the (mark an X in one)


tenant of the real property identified on this form; and



the work described above will result in a capital improvement to the real property as outlined in the instructions of this form; and

this contract (mark an X in one)


does not include the sale of any items that will not become a permanent part of the


real property (for example, a free-standing microwave or washing machine).

I understand that:

I will be responsible for any sales tax, interest, and penalty due on the contractor’s total charge for tangible personal property and for labor if it is determined that this work does not qualify as a capital improvement; and

I will be required to pay the contractor the appropriate sales tax on tangible personal property (and any associated services) when the property installed by the contractor does not become a permanent part of the real property; and

I will be subject to civil or criminal penalties (or both) under the Tax Law if I issue a false or fraudulent certificate.

Signature of customer



To be completed by the contractor

I, the contractor, certify that I have entered into a contract to perform the work described by the customer named above, and that I accept this form in good faith. (A copy of the written contract, if any, is attached.) I understand that my failure to collect tax as a result of accepting an improperly completed certificate will make me personally liable for the tax otherwise due, plus penalties and interest.

Signature of contractor or officer



This certificate is not valid unless all entries are completed.

Page 2 of 2ST-124 (12/15)


When the customer completes this certificate and gives it to the contractor, who accepts it in good faith, it is evidence that the work to be performed will result in a capital improvement to real property.

A capital improvement to real property is an addition or alteration to real property that:

(a)substantially adds to the value of the real property or appreciably prolongs the useful life of the real property, and

(b)becomes part of the real property or is permanently affixed to the real property so that removal would cause material damage to the property or article itself, and

(c)is intended to become a permanent installation.

The work performed by the contractor must meet all three of these requirements to be considered a capital improvement. This certificate may not be issued unless the work qualifies as a capital improvement. See Tax Bulletin Capital Improvements (TB-ST-104).

If a contractor performs work that constitutes a capital improvement, the contractor must pay tax on the purchase of building materials or other tangible personal property, but is not required to collect tax from the customer for the capital improvement. No credit or refund is allowed for the tax paid on the cost of materials by the contractor. See Tax Bulletin Contractors – Sales Tax Credits (TB-ST-130).

For guidance as to whether a job is a repair or a capital improvement, see Publication 862, Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property.

A contractor, subcontractor, property owner, or tenant, may not use this certificate to purchase building materials or other tangible personal property tax free. A contractor’s acceptance of this certificate does not relieve the contractor of the liability for sales tax on the purchase of building materials or other tangible personal property subsequently incorporated into the real property as a capital improvement unless the contractor can legally issue Form ST-120.1, Contractor Exempt Purchase Certificate. (See Publication 862 for additional information.)

The term materials is defined as items that become a physical component part of real or personal property, such as lumber, bricks, or steel. This term also includes items such as doors, windows, sinks, and furnaces used in construction.

Floor covering

Floor covering such as carpet, carpet padding, linoleum and vinyl roll flooring, carpet tile, linoleum tile, and vinyl tile installed as the initial finished floor covering in new construction, a new addition to an existing building or structure, or in a total reconstruction of an existing building or structure, constitutes a capital improvement regardless of the method of installation. As a capital improvement, the charge to the property owner for the installation of floor covering is not subject to New York State and local sales and use taxes. However, the retail purchase of floor covering (such as carpet or padding) itself is subject to tax.

Floor covering installed other than as described above does not qualify as a capital improvement. Therefore, the charges for materials and labor are subject to sales tax. The contractor may apply for a credit or refund of any sales tax already paid on the materials.

The term floor covering does not include flooring such as ceramic tile, hardwood, slate, terrazzo, and marble. The rules for determining when floor covering constitutes a capital improvement do not apply to such flooring. The criteria stated in (a), (b), and (c) above apply to such flooring.

Temporary facilities at construction sites

Subcontracts to provide temporary facilities at construction sites that are necessary for the construction of a capital improvement are considered to be part of the capital improvement project.

Examples of temporary facilities include temporary:

heat, electric, or plumbing services;

protective pedestrian walkways; and

scaffolding services.

A primary contractor purchasing qualifying temporary facilities from a subcontractor must give the subcontractor a copy of Form ST-124 issued to the primary contractor by the customer (including a customer that is an exempt organization) to purchase the subcontractor’s services exempt from tax.

A certificate is accepted in good faith when a contractor has no knowledge that the certificate is false or is fraudulently given, and reasonable ordinary due care is exercised in the acceptance of the certificate.

If a contractor gets a properly completed Form ST-124 from the customer within 90 days after rendering services, and accepts it in good faith, the customer bears the burden of proving the job or transaction was not taxable.

If you are a contractor who installs items such as washing machines, clothes dryers, dishwashers, refrigerators, furniture, etc., which when installed or placed in real property do not become part of the real property, you must collect tax on your charge for the installation. The individual charge for any of these items is also taxable as the sale of tangible personal property.

If a contractor does not get a properly completed Certificate of Capital Improvement within 90 days, the contractor bears the burden of proving the work or transaction was a capital improvement. The failure to get a properly completed certificate, however, does not change the taxable status of a transaction; a contractor may still show that the transaction was a capital improvement.

Contractors and subcontractors must keep any exemption certificate for at least three years after the due date of the last return to which it relates, or the date the return was filed, if later. The contractor must also maintain a method of associating an exempt sale made to a particular customer with the exemption certificate on file for that customer.

Need help?

Visit our website at

get information and manage your taxes online

check for new online services and features

Telephone assistance


Sales Tax Information Center:

(518) 485-2889

To order forms and publications:

(518) 457-5431

Text Telephone (TTY) Hotline (for persons with

  hearing and speech disabilities using a TTY): (518) 485-5082

Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are

accessible to persons with disabilities. If you have questions about special accommodations for persons with disabilities, call the information center.

Privacy notification

See our website or Publication 54, Privacy Notification.

How to Edit Form St 124 Online for Free

Our top level web developers have worked collectively to make the PDF editor that you'll operate. The following software allows you to fill in new york capital improvement documents quickly and efficiently. This is all you need to do.

Step 1: Choose the "Get Form Now" button to begin the process.

Step 2: Now you may edit the new york capital improvement. You may use the multifunctional toolbar to insert, eliminate, and transform the content of the file.

Enter the information required by the application to complete the file.

tax form capital improvement spaces to fill out

Type in the necessary details in the area I certify that I am the mark an X, tenant of the real property, does not include the sale of any, includes, owner, real property for example a, I understand that, I will be responsible for any, labor if it is determined that, I will be required to pay the, property installed by the, I will be subject to civil or, Signature of customer, Title, and Date.

tax form capital improvement I certify that  I am the mark an X, tenant of the real property, does not include the sale of any, includes, owner, real property for example a, I understand that, I will be responsible for any, labor if it is determined that, I will be required to pay the, property installed by the, I will be subject to civil or, Signature of customer, Title, and Date fields to fill

Step 3: Select the button "Done". The PDF form may be exported. You can easily download it to your device or send it by email.

Step 4: In order to avoid any complications down the road, be sure to prepare up to a few duplicates of your file.

Watch Form St 124 Video Instruction

Please rate Form St 124

1 Votes
If you believe this page is infringing on your copyright, please familiarize yourself with and follow our DMCA notice and takedown process - click here to proceed .