The petitioner, referred to as the Settlor, seeks an advisory opinion regarding the tax implications of exercising a Substitution Power within an irrevocable trust. The Settlor intends to substitute tangible personal property for trust property of equivalent value without incurring New York State and City sales or compensating use tax. The petitioner argues that the exchange does not constitute a retail sale or purchase at retail due to the absence of consideration, as the Settlor has a pre-existing right to initiate the exchange and the Trustees are obligated to comply without negotiation or mutual assent.
documents/EFTA01107344.pdf
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