When a veterinary practice treats farm livestock, which of its purchased items (medications, syringes, sutures, diagnostic reagents) qualify for a sales-tax refund as 'drugs or medicine,' can the practice ever buy items tax-free for resale, and could it set up a separate pharmacy or retail store to sell animal-health products without paying tax on its own purchases?

Plain-English summary

Battenkill Veterinary Bovine, PC is a New York veterinary practice treating farm livestock and poultry, both by providing services and by selling animal-health items directly to farmers. The practice posed six detailed questions about how sales tax applies to its purchases, its resales, and a specific farm-related refund provision — the Department answered each in turn:

What counts as "drugs or medicine" for the veterinarian refund? New York gives veterinarians a narrow refund/credit (§ 1119(a)(5)) for sales tax paid on drugs or medicine used in treating livestock/poultry raised for farm production, or sold to a farmer for that same purpose. Since the statute doesn't define "drugs or medicine" for this specific refund, the Department borrowed the definition already used for the human drugs/medicine exemption: an item recognized in official pharmacopeias/formularies and intended to diagnose, treat, or prevent disease, or a non-food item intended to affect the animal's bodily structure or function.

Which items in a worked example qualify? Using a detailed mastitis-treatment scenario (a diagnostic reagent, three medications, a syringe/needle, an IV tube, sutures, and a bandage), the Department drew a sharp line: genuine medications (assuming they're recognized in the official pharmacopeias) qualify for the refund, but the diagnostic reagent, syringe, needle, IV tube, sutures, and bandage are all medical supplies, not drugs or medicine — no refund available on those, even though they're used in the very same treatment.

Can a veterinarian buy items tax-free "for resale"? Generally no. A special rule (§ 1115(f)) treats a veterinarian's purchase of any animal-related tangible personal property as a taxable retail sale to the vet, regardless of whether the vet later resells it — the ordinary resale-certificate mechanism doesn't apply to these items. The one narrow exception: if a veterinarian buys something not "designed for use in some manner relating to domestic animals or poultry" intending to resell it, that specific item could be purchased for resale (though the vet would then need to register as a vendor and collect tax on its own sale, since animal-health items sold by vets are otherwise tax-free to the customer under § 1115(f)).

Could the practice open a separate pharmacy/retail store? Yes, tax-wise — a legally separate entity, distinct from the veterinary practice itself, could buy inventory tax-free for resale like any ordinary retailer and would then collect tax on its taxable sales (subject to farmer/horse-boarding exemption certificates where applicable). But the Department expressly declined to weigh in on whether professional-licensing rules for veterinary corporations would actually permit such a separate structure — that's outside its jurisdiction.

What this means for you

Veterinary practices treating farm animals

Don't assume a resale certificate can ever shield your purchases of animal-health products, even ones you resell to farmers "as is" — the special veterinarian rule in § 1115(f) overrides the ordinary resale exclusion for anything designed for use on domestic animals or poultry. Your tax-saving lever here is the narrower drugs/medicine refund, not an up-front exemption.

Practices seeking the farm drugs/medicine refund

Be precise about what you're claiming: only genuine pharmacopeia-recognized medications (or non-food items affecting an animal's bodily structure/function) qualify — supplies like syringes, needles, sutures, bandages, IV tubes, and diagnostic reagents don't, even when used in the exact same farm-animal treatment.

Veterinary groups considering a separate retail/pharmacy arm

A genuinely separate legal entity can buy for resale and collect tax on sales the way any retailer would — but confirm with a veterinary-licensing specialist (not just a tax advisor) whether your professional corporation structure actually permits operating a separate retail business, since the Department's opinion doesn't address that question.

Common questions

Q: Can a veterinarian use a resale certificate to buy animal medicine or supplies tax-free?
A: No, not for items designed for use on domestic animals or poultry — those purchases are always deemed a taxable retail sale to the veterinarian, even if later resold, per Tax Law § 1115(f).

Q: Is a syringe or diagnostic reagent used to treat a cow considered "drugs or medicine" for the farm refund?
A: No — these are classified as medical supplies, not drugs or medicine, and don't qualify for the § 1119(a)(5) refund even when used in farm-livestock treatment.

Q: Can a veterinary practice ever operate tax-free as a retailer?
A: Only through a genuinely separate legal entity operating as an ordinary vendor (buying for resale, collecting tax on sales) — not through the veterinary practice itself, and only if permitted by professional licensing rules outside the Department's authority.

Q: Are sales by veterinarians of animal-health items taxable to the customer?
A: Generally no — § 1115(f) exempts a veterinarian's sale of articles designed for use on domestic animals or poultry, but the veterinarian still pays tax on its own purchase of those items.

Citations and references

Statutes and regulations:

• Tax Law § 1101(b)(4)(i) (retail sale; resale exclusion)
• Tax Law § 1105(a) (retail sales tax), § 1110(a) (compensating use tax)
• Tax Law § 1115(a)(6) (farming/commercial horse boarding exemption), § 1115(f) (veterinary services/articles exemption)
• Tax Law § 1119(a)(5) (refund/credit for drugs/medicine used on farm livestock/poultry)
• 20 NYCRR § 526.6(b)(2), (c) (veterinary items retail-sale rule; resale exclusion)
• 20 NYCRR § 527.1(b) (taxable/exempt items sold as a single unit)
• 20 NYCRR § 528.4(b) (drugs and medicines definition), (g) (medical supplies)
• 20 NYCRR § 528.24 (veterinary services exemption; purchases by veterinarians)
• 20 NYCRR § 534.3 (refund/credit authorization)
• Education Law §§ 6701, 6702, 6802(7) (veterinary practice and drug definitions)
• 21 U.S.C. § 321(g)(1) (federal drug definition)

Prior rulings referenced:

• Matter of William J. Twining, DVM, TSB-H-82(15)S
• Matter of Delmar Animal Hospital, TSB-H-80(137)S
• Jacqueline Holtzman, TSB-A-01(12)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2003.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a03_33s.pdf

Original ruling text

New York State Department of Taxation and Finance

Office of Tax Policy Analysis
Technical Services Division

TSB-A-03(33)S
Sales Tax
September 2, 2003

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S030123A

On January 23, 2003, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Battenkill Veterinary Bovine, PC, POB 196, 516 State Route 29,
Greenwich, NY 12834.
Petitioner is a New York State professional service corporation employing licensed
veterinarians. Petitioner provides veterinary services to livestock and poultry owners engaged in
farming. Certain items used by the veterinarians in the provision of these services are also sold to
farmers to diagnose and treat diseases in their own animals. Petitioner sets forth a number of
questions concerning the application of sales and compensating use taxes to its purchases and sales
of these items. These questions are answered in the opinion portion of this Advisory Opinion.
Applicable Law and Regulations
Section 1101(b)(4)(i) of the Tax Law defines “retail sale,” in part, as follows:
A sale of tangible personal property to any person for any purpose, other than
(A) for resale as such. . . .
Section 1105(a) of the Tax Law imposes sales tax on “[t]he receipts from every retail sale
of tangible personal property, except as otherwise provided in this article.”
Section 1110(a) of the Tax Law imposes a use tax “for the use within this state . . . of any
tangible personal property purchased at retail.”
Section 1115 of the Tax Law provides, in part:
(a) Receipts from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the compensating
use tax imposed under section eleven hundred ten:
*

*

*

(6) (A) Tangible personal property, whether or not incorporated in a building
or structure, for use or consumption predominantly either in the production for sale
of tangible personal property by farming or in a commercial horse boarding
operation, or in both.

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*

*

*

(f) Services rendered by a veterinarian licensed and registered as required by
the education law which constitute the practice of veterinary medicine as defined in
said law, including hospitalization for which no separate boarding charge is made,
shall not be subject to tax under paragraph (3) of subdivision (c) of section eleven
hundred five, but the exemption allowed by this subdivision shall not apply to other
services provided by a veterinarian to pets and other animals, including, but not
limited to, boarding, grooming and clipping. Articles of tangible personal property
designed for use in some manner relating to domestic animals or poultry, when sold
by such a veterinarian, shall not be subject to tax under subdivision (a) of section
eleven hundred five or under section eleven hundred ten. However, the sale of any
such articles of tangible personal property to a veterinarian shall not be deemed a
sale for resale within the meaning of paragraph (4) of subdivision (b) of section
eleven hundred one and shall not be exempt from retail sales tax.
Section 1119(a) of the Tax Law provides, in part:
Subject to the conditions and limitations provided for herein, a refund or
credit shall be allowed for a tax paid pursuant to subdivision (a) of section eleven
hundred five or section eleven hundred ten . . . (5) on the sale to or use by a
veterinarian of drugs or medicine if such drugs or medicine are used by such
veterinarian in rendering services, which are exempt pursuant to subdivision (f) of
section eleven hundred fifteen of this chapter, to livestock or poultry used in the
production for sale of tangible personal property by farming or if such drugs or
medicine are sold to a person qualifying for the exemption provided for in paragraph
(6) of subdivision (a) of section eleven hundred fifteen of this chapter for use by such
person on such livestock or poultry. . . .
Section 526.6 of the Sales and Use Tax Regulations provides, in part:
*

*

*

(b)(2) A sale of tangible personal property designed for use in some manner
relating to domestic animals or poultry, when sold to a licensed veterinarian, is
deemed a retail sale, notwithstanding a subsequent sale of such item of tangible
personal property by said veterinarian. . . .
*

*

*

(c) Resale exclusion. (1) Where a person, in the course of his business
operations, purchases tangible personal property or services which he intends to sell,

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either in the form in which purchased, or as a component part of other property or
services, the property or services which he has purchased will be considered as
purchased for resale, and therefore not subject to tax until he has transferred the
property to his customer.
*

*

*

(2) A sale for resale will be recognized only if the vendor receives a properly
completed resale certificate. . . .
(3) Receipts from the sale of property purchased under a resale certificate are
not subject to tax at the time of purchase by the person who will resell the property.
The receipts are subject to tax at the time of the retail sale.
Section 527.1(b) of the Sales and Use Tax Regulations provides:
Taxable and exempt items sold as a single unit. When tangible personal
property, composed of taxable and exempt items is sold as a single unit, the tax shall
be collected on the total price.
Example:

A vendor sells a package containing assorted cheeses, a
cheese board and a knife for $15. He is required to collect tax
on $15.

Section 528.4 of the Sales and Use Tax Regulations provides, in part:
*

*

*

(b) Drugs and medicines. (1) Drugs and medicines mean:
(i) articles, whether or not a prescription is required for purchase, which are
recognized as drugs or medicines in the United States Pharmacopeia, Homeopathic
Pharmacopeia of the United States, or National Formulary, and intended for use in
the diagnosis, cure, mitigation, treatment or prevention of disease in humans;
(ii) articles (other than food) intended to affect the structure or any function
of the human body.
*

*

*

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(3) Products consumed by humans for the preservation of health include other
substances used internally or externally, which are not ordinarily considered drugs
or medicines. (Emphasis added)
*
Example 6:

*

*

Any diagnostic drug, chemical or other substance which is
used internally or externally . . . is exempt.
*

*

*

*

*

*

(g) Supplies.

Example 2:

Bandages, gauze and dressings are medical supplies.

Example 3:

Disposable hypodermic syringes and litmus paper . . . are
medical supplies.

Section 528.24 of the Sales and Use Tax Regulations provides, in part:
Services rendered by veterinarians.
(a) Exemption. (1) The exemption is allowed for services rendered by a
licensed veterinarian which constitute the practice of veterinary medicine, including
hospitalization for which no separate boarding charge is made.
(2) The exemption is not applicable to other services provided by a
veterinarian, including but not limited to boarding, grooming and clipping.
(3) The exemption is allowed for articles of tangible personal property
designed for use in some manner relating to domestic animals or poultry, when sold
by such a licensed veterinarian. (Emphasis added)
(b) Definitions. (1) Practice of veterinary medicine. Section 6701 of the
Education Law defines the practice of the profession of veterinary medicine as
diagnosing, treating, operating or prescribing for any animal disease, pain, injury,
deformity or physical condition. Animal includes every living creature except human
beings.

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(2) Use of title veterinarian. Section 6702 of the Education Law provides
that only a person licensed or exempt under article 135 of the Education Law shall
practice veterinary medicine or use the title veterinarian.
(c) Purchases by a veterinarian. (1) Purchases of tangible personal property
by a veterinarian for use in the practice of veterinary medicine and performing
taxable services are subject to tax.
(2) The purchase by a veterinarian of tangible personal property designed for
use in some manner relating to domestic animals or poultry is deemed a retail sale,
notwithstanding a subsequent sale of such items by the veterinarian.
Example 1:

The purchase of medicine, collars, flea spray, food or
brushes, whether used by a veterinarian in performing a
service or sold to others, is subject to tax at the time of
purchase by a veterinarian.

Example 2:

The sale by a veterinarian of collars, flea spray, brushes, food
and medicine which are directly related to the well-being of
animals and pets is not subject to tax.

Section 534.3 of the Sales and Use Tax Regulations provides, in part:
(a) Authorization. Where a sales or compensating use tax has been correctly,
legally, and constitutionally imposed and paid on the purchase of tangible personal
property, a refund or credit of State and local taxes paid pursuant to subdivision (a)
of section 1105 or section 1110 of the Tax Law on the sale or use will be allowed to
the purchaser or user when, to the satisfaction of the Department of Taxation and
Finance, the purchaser shows that such tangible personal property was used in one
of the following manners:
*

*

*

(5) drugs or medicine sold to or used by a veterinarian if such drugs or
medicine were:
(i) used by the veterinarian in rendering services, exempt pursuant to section
1115(f) of the Tax Law, to livestock or poultry used in the production of tangible
personal property by farming; or
(ii) sold to a person entitled to claim the farmer’s exemption under section
1115(a)(6) of the Tax Law for use by such person on production livestock or
poultry. . . .

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*

*

*

(f) Drugs or medicine used by veterinarians in rendering certain services to
livestock and poultry used in production, or sold to farmers for such use. A
veterinarian may apply for a credit or refund of sales tax paid on his purchase of
drugs and medicines:
(1) used in the practice of veterinary medicine on livestock or poultry,
exempt pursuant to section 1115(f) of the Tax Law, used in the production of
tangible personal property for sale, by farming;
(2) sold to a person entitled to the farming exemption provided by section
1115(a)(6) of the Tax Law for his use on livestock or poultry used in the production
of tangible personal property for sale, by farming; or
(3) provided the drugs and medicine are used by the veterinarian as described
above within three years after the date such tax was payable to the Department of
Taxation and Finance and that an application for a credit or refund is filed within
three years after the date such tax was payable to the Department of Taxation and
Finance.
*

*

*

Example 1:

A veterinarian treats several cows in a dairy herd for mastitis.
The veterinarian may apply for a credit or refund of the sales
tax paid at the time of purchase on the drugs and medicine he
uses to treat the affected cows. Additionally, he may claim
a refund of sales tax paid on drugs or medicine he sells the
farmer to treat the herd.

Example 2:

A veterinarian treats an injured racehorse and sells the trainer
drugs and medicine to continue treatment. Since the
racehorse is not used in the production of tangible personal
property for sale, by farming, the veterinarian may not file a
claim for credit or refund of the tax paid on such drugs and
medicine since a refund or credit is not allowable.

Opinion
The following are the questions presented by Petitioner concerning its purchases and sales
and the appropriate answers:

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1.

Question. With regard to the refund or credit allowed veterinarians under section 1119(a)(5)
of the Tax Law and section 534.3(f) of the Sales and Use Tax Regulations for sales tax paid
on certain drugs or medicine, what is meant by the term “drugs or medicine”?
Answer. The Sales and Use Tax Regulations do not provide a definition of the term “drugs
and medicines” specifically for the purposes of the refund or credit provided to veterinarians
as authorized in section 1119(a)(5) of the Tax Law. For federal purposes, drugs are defined
as (a) articles recognized in the official United States Pharmacopeia, official Homeopathic
Pharmacopeia, or official National Formulary; (b) articles intended for use in the diagnosis,
cure, mitigation, treatment, or prevention of disease in man or other animals; and (c) articles
(other than food) intended to affect the structure or any function of the body of man or other
animals ( see 21 USCS Section 321(g)(1)). Similarly, the New York State Education Law
defines the term “drugs” as articles recognized in the official compendiums, or intended for
use in the diagnosis, cure, etc., of disease in man or animals, or non-food articles intended
to affect the structure or function of the body of man or animals, and excludes from the term,
devices and their components, parts or accessories. See section 6802(7) of the Education
Law. Though the term “drugs and medicines” is not defined for purposes of section
1119(a)(5) of the Tax Law, such term is defined for purposes of the exemption provided
in section 1115(a)(3) of the Tax Law for drugs and medicines for use by humans. See
section 528.4(b)(1) of the Sales and Use Tax Regulations. The regulatory definition in such
section 528.4(b)(1) as applicable to drugs and medicines consumed by humans is
comprehensive and derived from the definitions provided in the federal statute and the
Education Law. It is not unreasonable, therefore, to apply such definition in determining
what constitutes a drug or medicine for purposes of the refund and credit provisions of
section 1119(a)(5) respecting drugs or medicines used by veterinarians, or sold by
veterinarians for use, in treating animals used in farm production. Thus, an item which is
intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in
animals and is recognized as a drug or medicine in the United States Pharmacopeia,
Homeopathic Pharmacopeia of the United States, or National Formulary; or a non-food item
which is intended to affect the structure or function of the animal’s body, is considered to
be a drug or medicine for purposes of applying the refund or credit in section 1119(a)(5) of
the Tax Law. See section 528.4(b)(1) of the Sales and Use Tax Regulations.

2.

Question. A) Which of the following items would qualify for a refund or credit of sales tax
paid on their purchases by Petitioner based on the scenario described below:
a) Reagent X
b) Medications A, B, and C
c) syringe and needle

d) intravenous tube
e) sutures
f) bandage

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Scenario
Petitioner purchases several items necessary to treat cows used in farm production for
mastitis, and pays sales tax on such purchases. A farmer calls Petitioner to examine a cow
and a veterinarian employed by Petitioner performs a physical exam on the cow, takes a
sample of milk, and mixes the milk with Reagent X. Based on the result of this test, the
veterinarian diagnoses mastitis.
Treatment involves Medication A which is infused into the cow’s udder. Medication A is
a product pre-packaged in a syringe for individual use. Further treatment involves
Medication B which comes in a bottle. The veterinarian uses a disposable syringe and a
disposable needle to draw Medication B from the bottle and inject it into the cow. Further
treatment involves Medication C which is administered intravenously to the cow through a
tube that the veterinarian uses many times and sterilizes between uses.
In the course of treatment, the cow becomes fractious, bangs its head, and creates a
laceration on its face. The veterinarian uses sutures to close the wound.
The next day, the farmer finds another sick cow. The farmer comes to Petitioner and
purchases Reagent X, Medications A, B, and C, a syringe and needle, and a tube for
intravenous administration of Medication C. The farmer also purchases a bandage to apply
to another cow to cure a case of foot rot. Except for the syringe, needle, and sutures, the
farmer could have purchased all of these items at the feed store next door because they are
available over the counter, without a prescription. Alternatively, the farmer could seek a
prescription from Petitioner and buy these items from veterinarians in another state that sell
them over the Internet.
Petitioner charges the farmer fees for services performed and items purchased. Petitioner
does not charge sales tax.
Answer. None of the purchases of tangible personal property by Petitioner for use in its
practice of veterinary medicine (or in performing taxable services) are purchases for resale.
All such purchases are, under section 1115(f) of the Tax Law, subject to the sales and use
tax. In the above scenario, section 1119(a)(5) of the Tax Law allows Petitioner a refund or
credit of sales and use taxes paid on its purchases of drugs or medicines that are used in its
practice of veterinary medicine on cows used in farm production, or that are ultimately
resold to the farmer for use on such cows.
Items (a), (c), (d), (e), and (f) are not drugs or medicines which qualify for the refund or
credit described in section 1119(a)(5) of the Tax Law. Item (a), Reagent X, is a diagnostic
chemical or substance that as used in this case is a medical supply item. Items (c), syringe
and needle, (d), intravenous tube, (e), sutures, and (f), bandage, are also medical supplies.

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See section 528.4(g) of the Sales and Use Tax Regulations. Accordingly, Petitioner is not
eligible for a refund or credit of the sales tax paid on items (a), (c), (d), (e), and (f).
With regard to Item (b), assuming Medications A, B and C are recognized as drugs or
medicines in the United States Pharmacopeia, Homeopathic Pharmacopeia of the United
States, or National Formulary, Petitioner is eligible for a refund or credit of sales tax paid
on such items. However, the syringe, needle and tube used to administer the Medications
A, B, and C are not drugs or medicine, but rather medical supply items, and thus not items
for which section 1119(a)(5) authorizes a refund
B) If a farmer had a farmer’s exemption certificate on file, would the purchase of any of the
items by the feed store or by an Internet pharmacy run by veterinarians in another state be
subject to tax? If so, would the feed store owner be eligible for a refund?
Answer. Generally, the purchase of tangible personal property by a vendor for resale is not
subject to New York State sales tax. To purchase items for resale without paying sales tax,
the vendor must furnish a properly completed Form ST-120, Resale Certificate, to its
supplier. Since the feed store is not subject to the provisions of section 1115(f) of the Tax
Law regarding purchases of tangible personal property by veterinarians, it may purchase the
items without payment of the sales tax under the resale exclusion contained in section
1101(b)(4)(i)(A) of the Tax Law.
Purchases made by an out of state pharmacy which are delivered to that pharmacy are not
subject to New York State sales tax. However, sales by that pharmacy of property which is
delivered in New York may be subject to New York State sales and use tax.
Since the feed store may make purchases without payment of sales tax, the issue of refund
eligibility is moot.
3.

Question. When can a veterinarian purchase items for resale and not pay sales tax at the
time of purchase?
Answer. A veterinarian cannot purchase any items of tangible personal property for use in
its business of providing veterinary medical services without payment of sales tax. See
section 1115(f) of the Tax Law and section 528.24(c) of the Sales and Use Tax Regulations.
This includes all veterinary equipment, instruments, and supplies.

4.

Question. Does the status of the owners of a business as veterinarians preclude them from
operating with resale certificates in all circumstances?
Answer. No. Section 1115(f) of the Tax Law explicitly provides that sales of articles of
tangible personal property designed for use in some manner relating to domestic animals or
poultry by a veterinarian are not subject to tax. Section 1115(f) also provides that purchases

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of such articles (i.e., tangible personal property designed for use in some manner relating
to domestic animals or poultry) are not purchases for resale and are not exempt from tax.
See Matter of William J. Twining, DVM, Dec St Tx Comm, January 12, 1982,
TSB-H-82(15)S; Matter of Delmar Animal Hospital, Dec St Tx Comm, July 28, 1980,
TSB-H-80(137)S. Thus, if a veterinarian were purchasing for sale articles of property that
are not designed for use in some manner relating to domestic animals or poultry, it would
appear that the veterinarian was not, pursuant to section 1115(f), prohibited from making
such purchases for resale without payment of the tax to the supplier. In order to issue a
resale certificate on the purchase of such items, the veterinarian must be registered as a
vendor. Since such items are not within the classification of items that a veterinarian may
sell exempt from tax pursuant to section 1115(f), the veterinarian must collect and remit
applicable sales tax on such sales.
5.

Question. Can Petitioner establish a separate business from its veterinary practice to be
engaged only in the resale of products (providing no services)?
Answer. If a retail store were established as a legal entity separate and apart from
Petitioner’s veterinary practice to sell, deliver and bill customers for tangible personal
property such as drugs, medicines and other products designed for use in some manner
relating to domestic animals and poultry, while Petitioner separately performed and billed
veterinary services, the store would be required to be registered as a sales tax vendor. As
a registered vendor, such entity could make purchases of tangible personal property for
resale without paying sales tax and would be required to collect tax on receipts from sales
of taxable tangible personal property and services. See Jacqueline Holtzman, Adv Op
Comm T&F, April 17, 2001, TSB-A-01(12)S. Similarly, if Petitioner were to create a
separate pharmacy operation, distinct from Petitioner’s veterinary practice, such pharmacy
could be operated pursuant to the provisions of Article 28 of the Tax Law relating to vendors
other than those engaged in the practice of veterinary medicine. The pharmacy could
purchase drugs, medicines, medical equipment and supplies, and other tangible personal
property designed for use in some manner relating to domestic animals and poultry for
resale, without being required to pay tax on such purchases. Sales of such products would
be subject to sales and use tax unless otherwise eligible for appropriate exemptions. For
example, sales of dog collars and leashes, or bandages and animal food, etc. would be
subject to tax. Where applicable, the pharmacy or retail store could accept appropriate
exemption documents from customers such as farmers and commercial horse boarding
operators.
However, this opinion does not address whether the professional licensing regulations under
the State Education Law, the laws regulating professional limited liability companies and
professional corporations, and such other laws as may be applicable, would allow Petitioner

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to create and operate such separate businesses. Since such arrangement is largely dependent
upon licensing and regulatory laws which are not within the jurisdiction of the Department
of Taxation and Finance, this Opinion makes no determination of the legality and viability
of such arrangement other than in relation to the application of the sales and use tax.
6.

Question. Are there veterinary clinics in New York State that use resale certificates?
Answer. As noted above, such use would generally not be an authorized or appropriate use
of that exemption certificate.

DATED: September 2, 2003

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.