New York State Attorney General Letitia James has filed a lawsuit against Sotheby alleging that the auction house facilitated the creation and use of fraudulent New York resale certificates for a client’s art purchases.
Following this and the anticipation that state authorities will increase investigations and prosecutions of sales and tax violations in the art market due to the pandemic’s impact on tax revenues, law firm Withers has provided some key reminders regarding the proper use and acceptance of New York resale certificates.
1. Dealer, investor or collector
If using a New Yor...