Publication 750
A Guide to Sales Tax in
New York State
Pub 750 (1115/ )
|
Publication 750
A Guide to Sales Tax in
New York State
Pub 750 (1115/ )
|
| No text to extract. |
|
Publication 750
(11/15)
About this publication
This publication is a comprehensive guide to New York State and local sales and use taxes for businesses that
sell taxable tangible personal property, perform taxable services, receive admission charges, or operate a hotel
or motel, and restaurants, taverns, or other establishments that sell food and drink.
Note: For basic, easy-to-understand explanations of particular sales tax topics, see our sales tax bulletins,
available on the Tax Department’s website at www.tax.ny.gov. We continue to add new bulletins on a regular
basis.
It is the department’s goal that all taxpayers meet their sales tax obligations and pay the correct amount of tax
they owe. If your business makes sales of property or services that are subject to sales tax, you must register
for sales tax purposes and obtain a Certificate of Authority. You should thoroughly read all the information
contained in this publication so that you become aware of your obligations in regard to sales tax. If you do not
fulfill your obligations under the Sales Tax Law, you could be subject to penalties. Some of these obligations
include, but are not limited to:
•registering for sales tax purposes and displaying a Certificate of Authority(seepage 12, How to obtain
your Certificate of Authority) and Tax Bulletin How to Register for New York State Sales Tax (TB-ST-360);
•collecting the proper amount of sales tax from customers (see page 22, Calculating and stating the sales
tax) and Tax Bulletin Taxable Receipt-How Discounts, Trade-ins and Additional Charges Affect Sales Tax
(TB-ST-860);
•issuing and accepting properly-completed sales tax exemption certificates (see page 27, Exemption
certificates) and Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240);
•maintaining records of sales and purchases in an orderly and adequate manner (see Part 3, Record
keeping) and Tax Bulletin Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770);
•filing sales tax returns and remitting any sales tax due in a timely manner as a trustee for the state (see
Part 4, Filing your sales tax return), Tax Bulletins Filing Requirements for Sales and Use Tax Returns
(TB-ST-275) , E-File Mandate for Businesses TB-MU-210) and E-File Mandate for Tax Return Preparers
(TB-MU-220);
•assuming personal liability for the payment of sales tax by certain responsible persons of a business; and
•providing notice to the department 20 days prior to purchasing or acquiring business assets from a sales
tax vendor, other than in the ordinary course of business (see Part 6, Purchasing or acquiring a business
or its assets: Caution).
Publication 900, Important Information for Business Owners, and Tax Bulletin Business Information for Sales
Tax Purposes (TB-ST-75) provide additional information on your responsibilities under the Sales Tax Law.
Obligation to register for sales tax purposes
You must register for sales tax purposes with the Tax Department if you make sales that are subject to tax. In
addition, you must be registered to issue or accept most exemption certificates and documents. See Part 1,
Registration, to help you determine if you are required to register for sales tax purposes.
3
|
|
Publication 750
(11/15)
As used in this publication and for purposes of the Tax Department’s registration rules, the term vendor
includes persons required to collect sales tax on sales and transactions described in Part II, Making sales.
Also, when used in this publication, the termssales,purchases,taxable sales, andtaxable purchases, include,
but are not limited to, where appropriate, the sale or purchase of the following: tangible personal property,
certain services, rentals of hotel and motel rooms, admissions to places of amusement, and dues paid to social
or athletic clubs. See Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175).
Note: See page 17, Sales by New York and United States governmental entities and certain exempt
organizations, for information relating to sales by governmental entities and certain exempt organizations.
Obligation to collect and remit tax
Once you are registered for sales tax purposes, you are responsible for collecting and remitting both state and
local sales taxes to the Tax Department, along with any use tax you may owe. If your business is an entity
such as a corporation or a partnership, the responsibility for collecting and remitting sales tax extends to the
responsible persons of the business. Therefore, certain owners, officers, directors, employees, partners or
members (responsible persons) of a business can be held personally liable for the tax the business owes. As
trustees for the state, a business and its responsible persons must remit any sales tax that is due with timely
filed sales tax returns. If you fail to collect and remit sales tax we may impose penalties and interest. (See
Part 4, Filing your sales tax return.)
Recordkeeping
You must keep detailed records of every sale, the amount paid, charged, or due on the transaction, and the
sales tax that is due, if any. Keeping good records of your business operation will help you prepare accurate
and complete sales tax returns. (See Part 3, Recordkeeping and Tax Bulletin Recordkeeping Requirements for
Sales Tax Vendors (TB-ST-770).)
In addition to being required to register for sales tax purposes, you may also be subject to registration,
collection, or payment requirements for other taxes. For a more detailed description of these taxes, see
Publication 20, New York State Tax Guide for New Businesses.
Additional information
The department has many general and industry-specific sales tax publications and technical service
memoranda that provide additional detailed information on various sales tax topics. You can obtain any tax
bulletin, publication, memorandum (TSB-M) or document referenced in this publication by visiting the Tax
Department’s website or by contacting us directly. You can also subscribe to receive timely notification of sales
tax changes by using our e-mail subscription service.
If you have any questions about sales and use tax, you may contact us by using the information provided in the
Need help? section on the back cover of this publication.
Note: A publication is an informational document that addresses a particular topic of interest to
taxpayers. Subsequent changes in the law and regulations, judicial decisions, Tax Appeals
Tribunal decisions, or changes in department policies could affect the validity of the
information contained in a publication. Publications are updated regularly and are accurate on
the date issued.
4
|
|
Publication 750
(11/15)
Table of contents Page
Part I – Registration
Who must be registered for sales tax purposes ................................................................................................. 7
Rules for out-of-state businesses ...................................................................................................................... 8
About your Certificate of Authority ..................................................................................................................... 9
Types of Certificates of Authority ..................................................................................................................... 10
How to obtain your Certificate of Authority ....................................................................................................... 12
Denial of a Certificate of Authority .................................................................................................................. 12
Taxpayers’ Bill of Rights ................................................................................................................................. 13
Registration rules for farmers .......................................................................................................................... 13
Registration rules for contractors ..................................................................................................................... 13
Registration rules for manufacturers ............................................................................................................... 14
Part II – Making sales
Taxable sales .................................................................................................................................................. 14
Additional sales taxes and fees you may be required to collect ...................................................................... 19
Sales taxes imposed only within New York City ............................................................................................... 20
Sales taxes imposed by certain school districts .............................................................................................. 21
Calculating and stating the sales tax ............................................................................................................... 22
Exempt sales .................................................................................................................................................. 25
Exempt sales – exemption certificate required ................................................................................................. 26
Exemption certificates ..................................................................................................................................... 27
Exempt purchasers .......................................................................................................................................... 28
Taxable business purchases ........................................................................................................................... 29
Part III – Recordkeeping
Recordkeeping rules ....................................................................................................................................... 31
Part IV – Filing your sales tax return
Filing requirements ......................................................................................................................................... 33
Completing your sales and use tax return ........................................................................................................ 35
Part V – Show and entertainment promoters
Show promoters .............................................................................................................................................. 37
Entertainment promoters ................................................................................................................................ 38
Part VI – Purchasing or acquiring a business or its assets: Caution
Bulk sales transactions .................................................................................................................................... 40
Appendix – List of common sales tax forms .................................................................................................... 43
Need help? ......................................................................................................................................... Back cover
5
|
|
Publication 750
(11/15)
THIS PAGE IS INTENTIONALLY LEFT BLANK
6
|
|
Publication 750
(11/15)
Part 1 – Registration
Who must be registered for sales tax purposes
You must be If you will be selling property or services in New York State that are subject
registered for sales to sales tax, you may be required to collect the sales tax from the person to
tax purposes with whom you make the sale. (The discussion on page 14 under Taxable sales
the Tax Department will help you determine whether the sales you make are subject to sales
if you will be selling tax.) In general, the sales tax you must collect and remit is computed using
tangible personal the combined state and local rate in effect in the locality where you deliver
property or services the taxable product or service to the customer. See pages 22 through 25 of
on which you are this publication for information on the special rules for calculating and
required to collect collecting tax on sales of motor fuels, alternative fuels, motor vehicles, and
sales tax certain boats. If you must collect sales tax on your sales, then you must
register for sales tax purposes with the Tax Department and obtain a
Certificate of Authority (see page 12 and Tax Bulletin How to Register for
New York State Sales Tax (TB-ST-360)).
You must be You must also be registered for sales tax purposes to issue or accept most
registered for sales New York State sales tax exemption documents. For example, even though
tax purposes to wholesalers may never collect sales tax because all of their purchases and
issue or accept most sales are for resale (and, therefore, are eligible for exemption from sales
New York State tax), they must still be registered to legally issue and accept most
sales tax exemption exemption documents.
certificates
For additional information on who must be registered for sales tax purposes,
see Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175).
If you engage in If you are required to register for sales tax purposes but fail to do so and
business without you engage in business without having obtained a valid Certificate of
obtaining a valid Authority, you will be subject to a penalty. The penalty is up to $500 for the
Certificate of first day business is conducted without having obtained a valid Certificate of
Authority, you will Authority, plus up to $200 per day for each day thereafter. The maximum
be subject to a penalty for engaging in business without obtaining a valid Certificate of
substantial penalty Authority is $10,000. See Tax Bulletin Sales and Use Tax Penalties
(TB-ST-805).
If you are changing If you change your organizational structure (for example, from a sole
your organizational proprietorship to a corporation, a limited liability company, or a partnership),
structure, you must the new organization must register for sales tax purposes and obtain a new
register for sales tax Certificate of Authority. The new business must obtain its own Certificate of
purposes as a new Authority before it begins operating. You must also file a final return for your
business existing business and surrender or destroy the Certificate of Authority that
was issued to the existing business. See Tax Bulletins Amending or
Surrendering a Certificate of Authority (TB-ST-25) and Filing Period
Indicators on Final Sales Tax Returns (TB-ST-270) .
7
|
|
Publication 750
(11/15)
Purchasing, If you are purchasing, transferring, or assigning either part or all of the
transferring, or assets of an existing business, there are specific rules that apply to the
assigning business transaction (see Part 6, Purchasing or acquiring a business or its assets:
assets Caution).
Rules for out-of-state businesses
Even though you are Even though you are located outside of New York State, if you have
located in another customers in New York State, and you have sufficient connection with
state, if you have New York State, you may be required to register for New York State and
customers in local sales tax purposes. For example, if you are located outside New York
New York State, you State, make sales of taxable products to persons within New York State,
may be considered a and regularly deliver the products in your trucks to your New York State
vendor for New York customers, you have sufficient connection with New York State and must
State sales tax register for sales tax purposes and collect and remit sales tax. You must
purposes also register if you solicit sales of taxable products or services through
employees, salespersons, independent agents, or service representatives
located in, or who enter New York State.
If the only connection you have with New York State is the delivery of your
products into the state by the U.S. Postal Service or common carrier, you
are not required to register or collect sales tax. Thus, some out-of-state
businesses (including some mail order companies) may not have sufficient
connection with New York State to be required to collect and remit sales
tax.
However, out-of-state sellers that make taxable sales of tangible personal
property or services in New York are presumed to be sales tax vendors
under certain conditions where they have agreements with New York
residents to compensate them for referring potential customers to the seller.
Also, under certain conditions, sellers of tangible personal property or
services located outside of New York that have an affiliate located in
New York may also be required to register to collect and remit sales tax. For
more detailed information, see TSB-M-08(3)S, New Presumption Applicable
to Definition of Sales Tax Vendor, TSB-M-08(3.1)S, Additional Information
on How Sellers May Rebut the New Presumption Applicable to the
Definition of Sales Tax Vendor as Described in TSB-M-08(3)S, and
TSB-M-09(3)S, Definition of a Sales Tax Vendor is Expanded to Include
Out-of-State Sellers with Related Businesses in New York State.
Although, as an out-of-state business, you may not be required to collect
sales tax from your customers in New York State, your customers are still
responsible for the payment of sales or use tax on their purchases. The use
tax complements the sales tax. An example of when use tax applies is when
a New York State resident purchases taxable products or services outside
of New York State and then brings them or has them brought into New York
State for use here. For more information, see Tax Bulletin Use Tax for
Businesses (TB-ST-910).
8
|
|
Publication 750
(11/15)
Although you may not have sufficient connection with New York State to
require you to be registered, you may voluntarily register for sales tax
purposes to collect and remit the sales tax that is otherwise due from the
purchaser. You will then have the same obligations as vendors that are
required to register with the Tax Department.
If you are required to register for sales tax purposes, or if you voluntarily
register, you must collect sales tax on all taxable sales delivered by you, or
for you, to the purchaser, or the purchaser’s designee, in this state. The tax
due is the combined state and local rate in effect in the locality where the
taxable product or service is delivered.
For more information on registration rules for out-of-state businesses, see
Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175).
About your Certificate of Authority
Your Certificate of Your Certificate of Authority authorizes you to collect sales tax on your
Authority authorizes taxable sales and to issue and accept certain New York State sales tax
you to collect sales exemption certificates. You cannot legally make taxable sales, collect tax on
tax on your taxable your taxable sales, or issue or accept many exemption documents until you
sales and to issue receive your Certificate of Authority. Exemption certificates are forms that a
and accept certain purchaser fills out and gives to the seller, so that there is a record of why
New York State the seller did not collect sales tax on the sale.
sales tax exemption
certificates Once you receive your Certificate of Authority, you are considered to be in
business for sales tax purposes even if you never make a sale or never
open the doors of your establishment. Therefore, it is important that you file
your sales tax returns on time, even if you did not have any taxable sales
during the reporting period, to avoid penalties for not filing.
You must You must prominently display your Certificate of Authority at your place of
prominently display business. If you have no permanent physical location, you can attach it to
your Certificate of your truck, cart, wagon, stand, or other vehicle or facility from which you
Authority at your conduct business. You are subject to a $50 penalty if you fail to properly
place of business display your Certificate of Authority. See Tax Bulletin Sales and Use Tax
Penalties (TB-ST-805).
If you have more than one place of business, you must display a Certificate
of Authority at each place of business. You may not use photocopies of a
Certificate of Authority but may request a separate certificate for each
location from the Tax Department. For more information on applying for a
Certificate of Authority when you have multiple business locations, see How
to obtain your Certificate of Authority on page 12.
If you already received your Certificate of Authority, but need a duplicate
copy because the original was lost or destroyed, you may contact us and
request a replacement.
9
|
|
Publication 750
(11/15)
A Certificate of A Certificate of Authority is not transferable or assignable. If you buy an
Authority is not ongoing business, you must apply for your own certificate. If you sell,
transferable transfer, or assign your business or cease doing business, you must
surrender your Certificate of Authority to the Tax Department or destroy it.
See Part 6 on page 40 for additional information on the rules regarding the
purchase, transfer, or assignment of a business.
Although your Certificate of Authority is not transferable or assignable, it
may be amended to account for changes in the address of the business or
business name. If you need to change your address you can do so by
visiting our website or by contacting us directly. You can also use
Form DTF-96, Report of Address Change for Business Tax Accounts.
Form DTF-95, Business Tax Account Update, can be used to provide the
Tax Department with information regarding address changes, telephone
number changes, and certain changes in business activities. You may
report some changes in business activities by contacting us directly.
If you cease doing If you cease doing business, you must surrender or destroy your Certificate
business of Authority and file a final sales tax return for the business within 20 days of
terminating the business. Special rules apply if you Web File a final sales
tax return. For more information, visit the Online Services section of our
website. Also, see Tax Bulletins Filing a Final Sales Tax Return
(TB-ST-265) and Amending or Surrendering a Certificate of Authority
(TB-ST-25).
Types of Certificates of Authority
The Tax Department The Tax Department issues two types of Certificates of Authority for sales
issues two types of tax purposes:
Certificates of
Authority for sales • regular, and
tax purposes • temporary.
The type of Certificate of Authority you apply for is based on the anticipated
duration of your business activities.
Note: The department no longer issues theCertificate of Authorityfor
Show and Entertainment Vendors. If you make sales at shows or
entertainment events, such as flea markets, craft shows, antique shows,
fairs, and similar shows, you should apply for a regular Certificate of
Authority.
See TSB-M-08(13)S, Changes Regarding the Issuance of Certificates of
Authority to Show and Entertainment Vendors, for more information.
Regular Certificate You should apply for a regular Certificate of Authority if you will be making
of Authority ongoing taxable sales from your home, a shop, a store, a cart, a stand, or
any other facility or facilities from which you regularly conduct your
business. It does not matter whether you own or rent the facility.
10
|
|
Publication 750
(11/15)
You must apply for a regular Certificate of Authority at least 20 days
before you begin operating your business in New York State. See How
to obtain your Certificate of Authority on page 14 and Tax Bulletin How To
Register for New York State Sales Tax (TB-ST-360).
Temporary You may apply for a temporary Certificate of Authority if you expect to make
Certificate of taxable sales in New York State for no more than two consecutive quarterly
Authority sales tax periods in any 12-month period. In determining whether you meet
this requirement, keep in mind that the sales tax quarters are: March 1
through May 31, June 1 through August 31, September 1 through
November 30, and December 1 through February 28 (February 29 in a leap
year).
Show and entertainment vendors may not apply for a temporary Certificate
of Authority; they must apply for a regular Certificate of Authority.
Even if you are eligible to obtain a temporary Certificate of Authority ,it may
be to your benefit to apply for a regular Certificate of Authority. That is
because a temporary Certificate of Authority is only good for the two
consecutive quarterly sales tax periods listed on your application and on
your temporary Certificate of Authority. In addition, if you operate the same
business or another business during the next 12-month period, you must
apply for a new temporary Certificate of Authority at least 20 days before
you resume doing business.
Example: You sell Christmas trees in November and December, and
your taxable sales consist only of sales during this period. Accordingly,
you are eligible to apply for a temporary Certificate of Authority.
However, if you intend to conduct this type of business activity every
year, you may wish to apply for a regular Certificate of Authority.
Therefore, you would not have to apply every year for a new temporary
Certificate of Authority, as the regular Certificate of Authority would
continue to be in effect until you indicate that you are no longer doing
business by filing a final return. However, once you receive a regular
Certificate of Authority you must file sales and use tax returns even if
you have no sales tax liability. Also, even if you file a final return, and
subsequently change your plans, you may apply for reactivation of your
regular Certificate of Authority simply by contacting us directly (as long
as it is within one year of deactivation).
Example: You have no consistent year-to-year sales activity in
New York State. However, you intend to sell costume jewelry from a
kiosk in the common area of a mall from October through December.
This will be your only business activity in New York State this year, and
you do not intend to sell in New York State next year. You may apply for
a temporary Certificate of Authority.
Example: You intend to sell crafts at a farmers’ market for seven
months, from the beginning of April through the end of October. This
seven-month period covers three consecutive quarterly sales tax
periods: March through May, June through August, and September
11
|
|
Publication 750
(11/15)
through November. You may not apply for a temporary Certificate of
Authority. You must apply for a regularCertificate of Authority.
If you qualify to apply for a temporary Certificate of Authority, you
must apply for it at least 20 days before you begin operating your
business. (See How to obtain your Certificate of Authority, below.)
How to obtain your Certificate of Authority
You must apply for a Certificate of Authority at least 20 days before you
You must apply for a
Certificate of begin operating your business. You can apply online by visiting New
Authority at least 20 York Business Express.
days before you
begin business If you cannot apply online, you must contact the Sales Tax Information
Center. See the Need help? section on the back cover of this publication.
The Tax Department will review your completed application. If your
application is approved, we will mail you a Certificate of Authority. You
cannot legally make taxable sales, collect tax on your taxable sales, or
issue or accept most exemption certificates until you receive your Certificate
of Authority. If you listed several places of business on your application, the
Tax Department will provide you with a separate Certificate of Authority for
each location.
Denial of a Certificate of Authority
The Tax Department The Tax Department may deny your request for a Certificate of Authority
may deny your under certain circumstances. For example, if you owe any tax imposed
request for a under the Tax Law that was finally determined to be due from you that you
Certificate of have not paid, we may deny your application for a Certificate of Authority.
Authority Remember that you cannot legally make taxable sales, collect tax on your
taxable sales, or issue or accept most New York State exemption
certificates until you receive a Certificate of Authority. See page 7 for
information regarding the penalties imposed for engaging in business
without first receiving a Certificate of Authority.
Within 30 days of If we deny your timely and complete application for a Certificate of Authority,
the mailing of the we will send you a Notice of Proposed Refusal to Register by certified mail
notice that your within five days of the date we receive your application. The Notice of
application for a Proposed Refusal to Register will state the basis for the proposed refusal. If
Certificate of you believe that the Tax Department has made a mistake, you should file a
Authority has been request for a conference with the Bureau of Conciliation and Mediation
denied, you may file Services, or file a petition for an expedited hearing with the Division of Tax
either a request for a Appeals. You must file the application for a conference or expedited hearing
conference, or a within 30 days of the mailing of the Notice of Proposed Refusal to Register;
petition for a hearing otherwise it becomes final. Once the Notice of Proposed Refusal to Register
becomes final, you are prohibited from engaging in any business in
New York State for which a Certificate of Authority is required.
12
|
|
Publication 750
(11/15)
Taxpayers’ Bill of Rights
New York State has a Taxpayers’ Bill of Rights that enhances and
formalizes your rights as a New York State taxpayer. In part, the Bill of
Rights requires the Tax Department to advise you, in writing, of your rights
to appeal a departmental decision. For more information on your rights, see
Publication 131, Your Rights and Obligations Under the Tax Law, or contact
us.
Registration rules for farmers
Farmers are not A farmer is not required to register for sales tax purposes if the only sales
required to register the farmer makes are sales of food and food products that are exempt from
for sales tax tax. For example, if a farmer sells fruits, vegetables, baked goods, jellies,
purposes unless jams, and preserves at a roadside stand, the farmer will not be required to
they make sales that register. In addition, farmers can issue Form ST-125, Farmer’s and
are subject to sales Commercial Horse Boarding Operator’s Exemption Certificate, to make
tax purchases exempt from tax when purchasing certain goods and services
used predominantly (more than 50%) in farm production, even though the
farmer is not registered for sales tax purposes.
However, if a farmer sells taxable tangible personal property such as hay,
livestock, plants, shrubs, trees, homemade crafts, or items such as candy
and other confections, or sells food or drink for consumption on the
premises where sold, then the farmer must register for sales tax purposes
and collect sales tax on sales of taxable tangible personal property and
services, or taxable food and drink. See Tax Bulletin Exemptions for
Farmers and Commercial Horse Boarding Operators (TB-ST-244).
Registration rules for contractors
A contractor is not required to register for sales tax purposes if the
contractor only contracts or subcontracts to do capital improvements. For
more information on the application of the Sales Tax Law to contractors and
the definition of capital improvement, see Publication 862, Sales and Use
Tax Classifications of Capital Improvements and Repairs to Real Property,
andTax Bulletins Capital Improvements (TB-ST-104), andContractors-
Sales Tax Credits (TB-ST-130),
Contractors must Contractors must register for sales tax purposes if they will make sales that
register for sales tax are subject to sales tax. For example, if a construction contractor makes
purposes if the sales repairs such as repairing a roof or a leaking pipe, the contractor must
they make are register for sales tax purposes.
subject to tax, or to
issue certain A contractor is required to be registered for sales tax purposes if the
exemption contractor is also a retailer. For example, if a tile shop both installs tile and
documents sells tile at retail, the contractor must register for sales tax purposes.
13
|
|
Publication 750
(11/15)
A contractor must also register for sales tax purposes in order to issue an
exemption document to make certain specific purchases exempt from sales
tax (such as a purchase of tangible personal property that is installed into
real property owned by an exempt organization).
Registration rules for manufacturers
As used in this section, the term manufacturer means and includes
manufacturers, processors, generators, assemblers, refiners, miners, and
extractors.
Manufacturers must A manufacturer may purchase raw materials and certain machinery,
register for sales tax equipment, parts, tools, supplies and related services exempt from sales
purposes if the sales tax. A manufacturer must be registered for sales tax purposes in order to
they make are make these purchases exempt from sales tax and issue the appropriate
subject to tax or to exemption documents. See Tax Bulletin Machinery, Equipment, Materials
issue or accept most and Services Used in Production (TB-ST-552).
exemption
documents A manufacturer must also register for sales tax purposes to accept a resale
certificate from a customer. For more information, see Publication 852,
Sales Tax Information For: Manufacturers,Processors, Generators,
Assemblers, Refiners, Miners and Extractors, and Other Producers of
Goods and Merchandise.
Part 2 – Making sales
Taxable sales
The following products and services are subject to sales tax when delivered
in New York State, unless specifically exempted or excluded. This list is
intended to provide general guidelines of the types of sales that are subject
to tax and is not all-inclusive. If your business will be making sales of any of
these types of products or services, you are required to register for sales tax
purposes and obtain a valid Certificate of Authority prior to doing business
in New York State.
For further information regarding products and services subject to sales tax,
see Tax Bulletin Quick Reference Guide for Taxable and Exempt Property
and Services (TB-ST-740).
Items and services Generally, the sales tax is imposed on:
subject to tax
• Retail sales of tangible personal property; unless specifically exempted
in the law.
• Sales of certain services (see page 16).
• Sales of gas, electricity, refrigeration, and steam (utilities).
• Sales of gas, electric, refrigeration and steam services (utilities).
• Sales of telephony and telegraphy.
14
|
|
Publication 750
(11/15)
• Sales of telephone and telegraph service (including telephone
answering services, facsimile transmission services, and mobile
telecommunications services).
• Sales of food and drink for on-premises consumption, for example,
when sold by restaurants and taverns; see Tax Bulletin Sales By
Restaurants, Taverns and Similar Establishments (TB-ST-806).
• Sales of food and drink when sold by caterers; see Tax Bulletin
Caterers and Catering Services (TB-ST-110).
• Sales of sandwiches and heated food; see Tax Bulletin Sandwiches
(TB-ST-835).
• Rent for occupancy of hotel or motel rooms (including bed and
breakfasts, boarding houses, guest houses, etc.); for more information
see Publication 848, A Guide to Sales Tax for Hotel and Motel
Operators, and Tax Bulletin Hotel and Motel Occupancy (TB-ST-331).
• Admission charges to places of amusement, other than live dramatic
or musical arts performances, motion picture theaters, sporting
facilities or activities in which the patron is the participant, live circus
performances, or charges which are taxed under any other law of this
state, such as for admissions to race tracks, boxing, sparring or
wrestling matches or exhibitions. Note: 75% of admission charges to
qualifying places of amusement are exempted from the imposition of
sales tax. See Tax Bulletins Amusement Parks - Admission, Ride, and
Other Charges (TB-ST-30) and Admission Charges to a Place of
Amusement (TB-ST-8).
• Dues, including initiation or membership fees, paid to social or athletic
clubs when the combined dues and fees are more than $10 per year.
• The charges of a roof garden, cabaret, or other similar place. Note:
When certain conditions are met, a portion of the charges made by a
roof garden, cabaret, or other similar place for admission to see a
dramatic or musical arts performance is exempt from sales tax. (See
TSB-M-06(15)S, Supplemental Summary of Recently Enacted
Legislation Affecting Sales and Use Taxes Effective in 2006.)
Sales of tangible The term tangible personal property means physical personal property, of
personal property any nature, that has a material existence and is perceptible to the human
senses. The term sale includes outright sales, rentals, leases, and licenses
to use. Tangible personal property includes a variety of goods. Examples of
taxable sales of tangible personal property include, but are not limited to,
sales of:
• furniture, appliances, and lighting fixtures;
• certain clothing and footwear; see Tax Bulletin Clothing and Footwear
Exemption (TB-ST-122);*
• machinery and equipment, parts, tools, and supplies;
• computers;
• prewritten (canned/off-the-shelf/standard) computer software (whether
transferred by CD-ROM, Internet download, remote access, etc.); see
Tax Bulletin Computer Software (TB-ST-128);
• motor vehicles;
15
|
|
Publication 750
(11/15)
• boats and yachts; for information on the partial exemption for vessels,
see TSB-M-15(2)S, Changes to the Application of Sales and Use Tax
to Vessels;
• fuels (for example, gasoline, diesel fuel, and kero-jet fuel);
• candy and confections; see Tax Bulletin Candy and Confectionary
(TB-ST-103);
• bottled water; see Tax Bulletin Beverages Sold by Food Stores,
Beverage Centers, and Similar Establishments (TB-ST-65);
• soda and beer; see Tax Bulletin Beverages Sold by Food Stores,
Beverage Centers, and Similar Establishments (TB-ST-65);
• cigarettes and tobacco products;
• cosmetics and toiletries; see Tax Bulletin Drugstores and Pharmacies
(TB-ST-193);
• jewelry;
• artistic items such as sketches, paintings, and photographs;
• animals (for example, dogs, cats, or pet birds);
• food and supplies for animals;
• trees, shrubs, plants, and seeds;
• coins and other monetary items, when purchased for purposes other
than for use as a medium of exchange;
• building materials; and
• prepaid telephone calling cards.
* If you sell clothing or footwear, see Publication 718-C, Sales and Use Tax
Rates On Clothing and Footwear ,for the most up-to-date information
concerning the applicable tax rates to charge your customers.
Services subject to Only certain services are subject to tax. These services include:
tax
• Providing certain information services. (See TSB-M-10(7)S, Sales and
Compensating Use Tax Treatment of Certain Information Services.)
• Producing, fabricating, processing, printing or imprinting tangible
personal property furnished by a customer who does not intend to
resell it (for example, when an individual purchases lumber and has a
cabinetmaker construct a bookcase for him or her).
• Installing, maintaining, servicing, or repairing tangible personal
property that is not held for sale by the purchaser of the service in the
regular course of business (for example, servicing automobiles,
repairing appliances, and repairing radio and television sets).
• Storing tangible personal property that is not being held for sale (for
example, storing a customer’s fur coat or providing storage for a
customer’s household goods).
• Renting safe deposit boxes.
• Maintaining, servicing, or repairing real property, both inside and
outside buildings (for example, cleaning, painting, gardening,
snowplowing, trash removal, and general repairs). (See
Publication 862, Sales and Use Tax Classifications of Capital
Improvements and Repairs to Real Property.)
• Providing parking, garaging, or storage services for motor vehicles.*
See Tax Bulletin Parking, Garaging, and Storing of Motor Vehicles
(TB-ST-677).
16
|
|
Publication 750
(11/15)
• Interior decorating and design services. See Tax Bulletin Interior
Decorating and Design Services (TB-ST-400).
• Protective or detective services.
• Entertainment or information services provided by means of telephone
or telegraph (for example, 800 or 900 numbers).
• Passenger transportation services with a driver, using limousines,
black cars, and certain other motor vehicles (not including taxi and bus
services). See TSB-M-09(2)S, Sales Tax Imposed on Certain
Transportation Services, TSB-M-09(7)S, Additional Guidance Relating
to the Sales Tax on Certain Transportation Services, and TSB-M-
13(2)S, Revised Policy Concerning the Application of the Sales Tax
Exclusion for Certain Transportation Services Provided by an Affiliated
Livery Vehicle in New York City.
* See TSB-M-08(14)S, Sales Tax Treatment of a Lease or Rental of Real
Property for the Purpose of Parking, Garaging, or Storage of Motor
Vehicles, for information on what constitutes a nontaxable lease of real
property for parking.
Sales by New York The Tax Law provides a general exemption from sales tax for sales made
and United States by the following:
governmental
entities and certain • New York State or any of its agencies, instrumentalities, public
exempt corporations, or political subdivisions (New York governmental entity);
organizations • the United States and its agencies and instrumentalities (United States
governmental entity);
• the United Nations or any international organization of which the
United States is a member (United Nations or any international
organization);
• certain not-for-profit organizations, (such as religious, charitable,
scientific, testing for public safety, literary or educational, or to foster
national or international sports competition);
• certain posts or organizations consisting of past or present members of
the armed forces of the United States, and qualifying auxiliary units of
such posts or organizations; and
• certain Indian nations or tribes residing in New York.
However, there are some exceptions to this general rule for sales made by
governmental entities and other exempt organizations. The sales described
below, when made in the manner indicated by either a governmental entity
or other exempt organization, are subject to sales and use taxes. This list is
intended to provide general guidance and is not meant to be all-inclusive. If
an exempt organization or governmental entity engages in sales of these
types of products or services, it is required to register for sales tax purposes
and obtain a valid Certificate of Authority prior to conducting business in
New York State (see page 12).
Generally, sales and use taxes are imposed on:
• Tangible personal property or services sold by New York or United
States governmental entities and certain sales by the United Nations
17
|
|
Publication 750
(11/15)
or any international organization, if the property or services are similar
to those ordinarily sold by private persons.
• Tangible personal property sold by any shop or store* operated by
certain not-for-profit organizations; posts or organizations of past or
present members of the armed forces, and qualifying auxiliary units; or
certain Indian nations or tribes residing in New York (see below for a
definition of shop or store).
• Tangible personal property or services sold by a rural electric
cooperative corporation, unless the purchaser is an exempt
organization.
• Food or drink sold in or by a restaurant or tavern operated by a
New York governmental entity; certain not-for-profit organizations;
posts or organizations of past or present members of the armed forces
and qualifying auxiliary units; or certain Indian nations or tribes residing
in New York.
• Under certain circumstances, rent for hotel occupancy received by
certain not-for-profit organizations. (See Publication 848, A Guide to
Sales Tax for Hotel and Motel Operators, and Publication 843, A Guide
to Sales Tax in New York State for Exempt Organizations.)
• Certain motor vehicle parking, garaging, or storage services by certain
not-for-profit organizations and posts or organizations of past or
present members of the armed forces, and qualifying auxiliary units.
* A shop or store is any place or establishment where goods are sold from
display with a degree of regularity, frequency, and continuity as well as any
place where sales are made through a temporary shop or store located on
the same premises as persons required to collect tax.
Additionally, certain not-for-profit organizations; certain posts or
organizations of past or present members of the armed forces, and
qualifying auxiliary units; and certain Indian nations or tribes residing in
New York are required to collect state and local sales tax on their retail
sales of the following property and on their sales, other than for resale, of
the following services:
• any lease or rental of tangible personal property;
• any utility service described in section 1105(b) of the Tax Law;
• any service to real property described in section 1105(c)(5) of the Tax
Law; and
• any tangible personal property where the sale is made by remote
means, such as by telephone, mail order (including email), over the
Internet, or by other similar methods, provided the exempt organization
makes such sales with a degree of regularity, frequency, or continuity.
Also, certain not-for-profit organizations; posts or organizations of past or
present members of the armed forces, and qualifying auxiliary units; and
certain Indian nations or tribes residing in New York are also required to
collect state and local sales and use tax on certain remote and auction
sales.
18
|
|
Publication 750
(11/15)
The sales described above are subject to tax whether or not they are made
from a shop or store. For more information on sales by certain exempt
organizations, see Publication 843, A Guide to Sales Tax in New York State
for Exempt Organizations. Also, see TSB-M-08(5)S, Tax Law Amendments
Related to Sales Made by Certain Sales Tax Exempt Organizations
Effective September 1, 2008,and TSB-M-08(15)S, Regulatory Amendments
Related to Sales Made by Certain Sales Tax Exempt Organizations –
Effective January 1, 2009.
For information on purchases made by governmental entities and certain
exempt organizations, including Indian nations, tribes, and individual
Indians, see Exempt purchasers on page 28.
Additional sales taxes and fees you may be required to collect
Passenger car An additional 6% statewide special tax is imposed on the short-term rental
rentals of a passenger car rented within New York State, or rented outside
New York State for use within New York State. Short-term rental means any
rental for less than one year. This tax is in addition to the applicable state
and local sales and use taxes.
Also, a special 5% supplemental tax is imposed on the short-term rental of
passenger cars within the Metropolitan Commuter Transportation District
(MCTD).* The special supplemental tax is in addition to the applicable state
and local sales and use taxes and the statewide special tax.
See TSB-M-09(1)S, Increase in the Special Tax on the Rental of Passenger
Cars, TSB-M-09(6)S, Special Supplemental Tax on the Rental of Passenger
Cars Within the Metropolitan Commuter Transportation District and Tax
Bulletin Sales Tax Rates, Additional Sales Taxes, and Fees (TB-ST-825) for
more information.
* The MCTD consists of New York City (Bronx, Kings, New York, Queens,
and Richmond counties) and the counties of Dutchess, Nassau, Orange,
Putnam, Rockland, Suffolk, and Westchester.
Entertainment or An additional 5% sales tax is imposed on entertainment or information
information services services provided by means of telephone that are received in an exclusively
aural manner by the customer (for example, 800 or 900 numbers).
Parking services Charges for parking services in New York City are subject to a higher rate of
sold in New York tax than most other sales. If you sell parking services in the borough of
City Manhattan (New York County), those sales are subject to the 8% additional
parking tax imposed on parking services within that borough. See Tax
Bulletin Parking Services in New York City (TB-ST-679). Under certain
circumstances, an individual resident of Manhattan is exempt from this 8%
tax. See TSB-M-85(14)S, 1985 Legislation - Chapter 330 Exemption From
New York City Additional Tax On Parking, Garaging and Storing of Motor
Vehicles, and TSB-M-96(13)S, Change In the New York City Parking Tax
19
|
|
Publication 750
(11/15)
Exemption for Manhattan Residents, for more information about the
exemption afforded Manhattan residents.
Fee on hotel An additional hotel unit fee in the amount of $1.50 per unit, per day, is
occupancy in imposed on every occupancy of a unit in a hotel located within New York
New York City City (Bronx, Kings, New York, Queens, and Richmond counties). See
TSB-M-05(2)S, Fee on Hotel Occupancy in New York City, for additional
information on this hotel unit fee.
Sales taxes imposed only within New York City
New York City local New York City local sales tax is also imposed on the following services
sales tax is also performed or delivered in the city:
imposed on certain
services that are • written or oral credit rating services;
performed or • oral credit reporting services not delivered by telephone;
delivered within • beautician, barbering, and hair restoring services; see Tax Bulletin
New York City Beauty Salons, Barber Shops, and Hair Restoration Services
(TB-ST-60);
• tattooing services; see Tax Bulletin Tattooing and Permanent Make-up
Services (TB-ST-855) ;
• tanning services; see Tax Bulletin Tanning Salons (TB-ST-853);
• manicure and pedicure services; see Tax Bulletin Manicures and
Pedicures (TB-ST-551);
• electrolysis;
• massage services; see Tax Bulletin Massage Services (TB-ST-554);
and
• the sale of the services of transporting, transmitting, distributing, or
delivering gas or electricity, when purchased from someone other than
the vendor of the gas or electricity. (See Important Notice, N-09-12,
Sales Tax Law Changes in New York City – Effective August 1, 2009.)
Note: The 4% New York State sales tax and the additional sales tax
imposed by the state in the MCTD do not apply to the above referenced
services.
In addition, the New York City local sales tax is imposed on every sale of
services by:
• weight control and health salons;
• gymnasiums;
• Turkish and sauna baths and similar establishments; and
• every charge for the use of such facilities.
Sales of these services are subject to the New York City local sales tax only
when the services are performed or delivered to customers within New York
City. See Tax Bulletins Miscellaneous Personal Services and Related Sales
in New York City (TB-ST-575), Health and Fitness Clubs (TB-ST-329),
New York City Health and Fitness Facilities (TB-ST-615), and Sales Tax
Rates, Additional Sales Taxes and Fees (TB-ST-825).
20
|
|
Publication 750
(11/15)
However, charges for services rendered by the following are not subject to
the local New York City sales tax:
• physicians;
• osteopaths;
• dentists;
• nurses;
• physiotherapists;
• chiropractors;
• podiatrists;
• optometrists; and
• ophthalmic dispensers; or
• a person performing similar services licensed under title VIII of the
New York State Education Law, and excluding those services when
performed on pets and other animals.
Note: The services described above are not subject to New York State
sales tax, including the sales tax imposed in the Metropolitan Commuter
Transportation District (MCTD), or to any local sales taxes imposed
elsewhere in the state. However, those credit rating and credit reporting
services that are subject to New York State and local sales tax as an
information service are subject to the full rate of state and local tax imposed
in each locality, including New York City. (For more information on the state
sales tax imposed in the MCTD, see page 22.)
Sales taxes imposed by certain school districts
Certain school Certain school districts in New York State impose sales tax on sales of the
districts in New York following utilities and utility services:
State impose sales
tax on utilities and • gas (including propane sold in containers of 100 pounds or more),
utility services electricity, refrigeration, and steam;
• gas, electric, refrigeration, and steam service;
• telephony and telegraphy, except interstate and international telephony
and telegraphy;
• telephone and telegraph services, except interstate and international
telephone and telegraph services, including telephone answering
services and facsimile transmission services (not including prepaid
telephone calling cards and services); and
• mobile telecommunications services provided by a home service
provider.
You can look up the combined tax rate on utilities or utility services sold in a
school district by using our online Jurisdiction/Rate Lookup by Address
service on the Tax Department’s website (at www.tax.ny.gov). You should
also look at Publication 718-R, Local Sales and Use Tax Rates on
Residential Energy ,and sales tax Schedule B and Schedule T, for a list of
tax rates on utilities or utility services.
21
|
|
Publication 750
(11/15)
Calculating and stating the sales tax
Compute the Generally, you compute the amount of sales tax due on a sale by applying
amount of sales tax the combined state and local sales tax rate to the amount of the sale. The
due on a sale by combined state and local sales tax rate consists of the state sales tax rate,
applying the plus the applicable rate of sales tax imposed by the local jurisdiction (city,
combined state and county, and school district). In addition, the state imposes an additional
local sales tax rate sales tax in those localities that are within the Metropolitan Commuter
to the amount of the Transportation District (MCTD). The MCTD is composed of New York City
sale (Bronx, Kings, New York, Queens, and Richmond counties), and the
counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and
Westchester.
The local tax rates vary by jurisdiction and by the items or services sold. For
updated state and local sales tax rates, use our online Jurisdiction/Rate
Lookup by Address service on our website (at www.tax.ny.gov).
Publication 718, New York State Sales and Use Tax Rates by Jurisdiction,
alsolists the combined state and local rates and the proper jurisdiction and
jurisdiction codes .
Note: Do not use ZIP codes for identifying customer location. Postal zones
usually do not coincide with political boundaries, and using ZIP codes for
tax collection results in a high degree of inaccurate tax reporting. Instead,
use our Sales Tax Jurisdiction and Rate Lookup service to determine the
taxing jurisdiction, correct sales tax rate, and jurisdictional reporting code.
For additional information on sales tax rate publications, sales tax rates, and
additional sales taxes and fees, see Tax Bulletins Sales Tax Rate
Publications (TB-ST-820), and Sales Tax Rates, Additional Sales Taxes,
and Fees (TB-ST-825).
Special rules for the New York State computes the state sales tax on qualified motor fuel and
calculation of sales diesel motor fuel using a cents-per-gallon method. The cents-per-gallon
tax on the sale of method also applies to the additional sales tax imposed on motor fuel and
qualified motor fuel diesel motor fuel in the MCTD. Counties and cities can also elect to change
and diesel motor their percentage rate sales tax to a cents-per-gallon method. For more
fuel information, see TSB-M-06(8)S, New Guidelines on the Sales of Motor Fuel
and Diesel Motor Fuel Subject to the Cents-Per-Gallon Sales Tax, and
Publication 718-F, Local Sales and Use Tax Rates on Qualified Motor Fuel,
Highway Diesel Motor Fuel, and B20 Biodiesel.
Sales tax exemption Alternative fuels (CNG, hydrogen, E85) are exempt from state and local
and reductions for sales tax, provided the fuel meets the definition of qualified fuel. Also, a
sales of certain reduced rate of state and local sales tax applies to biodiesel (B20).
alternative fuels
For additional information on these exemptions and reductions, see
TSB-M-06(10)S, Sales Tax Exemptions and Reductions for Certain
Alternative Fuels Beginning September 1, 2006, and TSB-M-12(10)S,
Extension of Sales and Use Tax Exemptions for Alternative Fuels.
22
|
|
Publication 750
(11/15)
The point of delivery The point of delivery generally determines the sales tax rate that applies to
determines the a transaction. Therefore, in computing the sales tax due, the rate to charge
combined tax rate to is the total of the New York State tax rate in effect in the jurisdiction where
charge on a sale, the delivery takes place, including the MCTD rate, if it applies, plus the local
except in the case of rate in effect in that jurisdiction. For taxable sales subject to the same tax
motor vehicles and rate, do not compute sales tax on each item separately. Instead, compute
certain boats the tax on the total amount of the transaction. However, if separate sales
are subject to different tax rates, then compute sales tax on each sale
separately.
For assistance in determining the proper jurisdiction for tax collection, go to
the department’s website at www.tax.ny.gov. Click on Find sales tax rates
and then the link for Jurisdiction/Rate Lookup by Address service.
Sales of motor For sales or long-term leases of motor vehicles, trailers, and certain boats,
vehicles, trailers, the point of delivery does not necessarily determine the rate of sales tax to
and certain boats to charge. If the purchaser or lessee is an individual who is a resident of
individuals New York State and the individual takes delivery of a motor vehicle, trailer,
or boat within New York State, collect the sales tax at the rate in effect in
the local jurisdiction where the individual is a resident. If the individual is a
resident of New York State and has one or more residences outside of
New York State, sales tax is to be collected at the rate in effect in the local
jurisdiction where the individual is a New York State resident.
If an individual is a resident of more than one local taxing jurisdiction within
New York State (whether or not the individual has one or more residences
outside of New York State), sales tax is to be collected at the rate in effect
in the local jurisdiction within New York State where the vehicle, trailer, or
boat is principally used or garaged, or the boat is principally stored. The
storage of a boat also includes mooring.
If the purchaser or lessee is an individual who is not a resident of New York
State, you generally do not need to charge sales tax on the sale unless the
vehicle, trailer or boat is registered in New York State. If the vehicle, trailer,
or boat is registered in New York State, collect sales tax at the rate in effect
in the jurisdiction where the vehicle, trailer, or boat is delivered to the
purchaser.
For sales tax purposes, an individual is a resident of New York State and of
a local taxing jurisdiction if the individual has a permanent place of abode
within the jurisdiction. A permanent place of abode is a dwelling place
maintained by an individual, or maintained on his or her behalf, whether or
not owned by the individual, on other than a temporary or transient basis.
The dwelling may be a house, apartment, flat, trailer, mobile home,
houseboat, or any other premises. It also may be a room, including a room
in a hotel, motel, boarding house, club, or a room at a residence hall
operated by an educational, charitable, or other institution. A permanent
place of abode also includes housing provided by the Armed Forces of the
United States, whether the housing is located on or off a military base or
reservation.
23
|
|
Publication 750
(11/15)
An individual is also a resident of any local jurisdiction in which he or she
carries out any employment, trade, business, or profession with respect to
any property used in that trade, business, or profession.
Sales of motor If the purchaser or lessee is a business that is a resident of New York State
vehicles, trailers, and the business takes delivery of a motor vehicle, trailer, or boat within
and certain boats to New York State, collect sales tax at the combined state and local rate in
businesses effect in the local jurisdiction where the business is a resident. If the
business is a resident of New York State and has one or more residences
outside of New York State, collect sales tax at the rate in effect in the local
jurisdiction where the business is a New York State resident.
If a business is a resident of more than one taxing jurisdiction within
New York State (whether or not it has one or more residences outside of
New York State), sales tax is to be collected at the rate in effect in the local
jurisdiction within New York State where the vehicle, trailer, or boat is
principally used or garaged, or the boat is principally stored. The storage of
a boat includes mooring it.
If the purchaser is a business that is not a resident of New York State, you
generally do not need to charge sales tax on the sale unless the vehicle,
trailer, or boat is registered in New York State. If the vehicle, trailer, or boat
is registered in New York State, collect sales tax at the rate in effect in the
jurisdiction where the vehicle, trailer, or boat is delivered to the purchaser.
See Tax Bulletin Motor Vehicles, Vessels, and Trailers (TB-ST-590).
For sales tax purposes, a business is a resident of a New York State taxing
jurisdiction if it carries on any employment, trade, profession, or maintains a
place of business in the jurisdiction. The storage of property, including
vehicles, trailers, and boats, constitutes maintaining a place of business.
For additional information on collecting sales tax on sales of motor vehicles,
see Publication 838, A Guide to Sales Tax for Automobile Dealers.
Shipping and If you charge your customer for shipping, handling, or delivery on the sale of
delivery charges tangible personal property or tangible personal property on which a taxable
service has been performed, include your charges for shipping, handling, or
delivery when calculating the sales tax. However, if the customer arranges
delivery by a third person and pays that person directly, the third person’s
delivery charge is not taxable. See TSB-M-92(2)S, Delivery Charge Added
to Taxable Receipt Effective September 1, 1991 ,and Tax Bulletin Shipping
and Delivery Charges (TB-ST-838).
Use the Jurisdiction/Rate Lookup by Address service on the department’s
website to determine the proper locality and rate of tax.
Separately stating You are not required to give your customer a written or printed receipt.
the amount of sales However, if you do give your customer any sales slip, invoice, receipt, or
tax versus the other statement relating to a sales transaction, you must separately state
alternate unit price the amount of sales tax due on the sales slip, invoice, receipt, or other
method statement. See Part 3, Recordkeeping, and Tax Bulletin Recordkeeping
Requirements for Sales Tax Vendors (TB-ST-770).
24
|
|
Publication 750
(11/15)
If you do not provide your customer with a written or printed receipt, you
may use the alternate unit price method. The unit price is the price of the
product, including sales tax, at which the sale is recorded. This price is
either rung up on a cash register or accounted for in some other way. If you
use this method, you must visibly display a sign telling the customer that the
price he or she is paying includes sales tax. You must also distinguish
products offered for sale by: labeling them taxable or nontaxable;
displaying taxable and nontaxable products separately; or by having a
detailed list of taxable and nontaxable products available for the customer.
You must keep accurate records distinguishing sales of taxable and
nontaxable products.
Exempt sales
General In general, if you only sell tangible personal property or services that are
always exempt from sales tax (see below), you are not required to
substantiate the exempt nature of the sale by receiving an exemption
certificate from the purchaser. In addition, you may not be required to
register and obtain a Certificate of Authority if the only sales that you make
are of property and services that are always exempt from tax.
You should collect sales tax if you sell tangible personal property or a
service that is normally taxable unless it is exempt because, for example,
the purchaser is a sales tax exempt organization (certain nonprofit
organizations), the purchaser intends to resell the property or service, or
because the purchaser will use the property or service in an exempt
manner. In these cases, you must receive a properly completed exemption
certificate from the purchaser within 90 days of the date of sale. Please note
that if you sell property or services that are normally taxable, even if you
only make sales that are exempt or excluded from the imposition of sales
tax, you must still be registered for sales tax purposes to issue and accept
most New York State sales tax exemption certificates. For additional
information on exemption certificates, see Exemption certificates on
page 27 and Tax Bulletin Quick Reference Guide for Taxable and Exempt
Property and Services (TB-ST-740).
Exempt sales – No Certain sales are always exempt from sales tax. Therefore, the purchaser is
exemption not required to give you an exemption certificate to claim the exemption.
certificate required These exemptions include, but are not limited to, sales of:
• Food, food products, certain beverages, dietary foods, and health
supplements that are sold for human consumption. However, sales of
candy, confections, soft drinks, alcoholic beverages, fruit drinks that
contain less than 70% natural fruit juice, sandwiches, and heated
foods are subject to sales tax. (See Tax Bulletins Listings of Taxable
and Exempt Foods and Beverages Sold by Food Stores and Similar
Establishments (TB-ST-525) and Dietary Foods and Health
Supplements (TB-ST-160) for more information.)
25
|
|
Publication 750
(11/15)
• Drugs and medicines intended for internal or external use, in the
diagnosis, cure, mitigation, treatment, or prevention of illnesses or
diseases in human beings. (See Publication 840, A Guide To Sales
Tax For Drugstores and Pharmacies and Tax Bulletin Drugstores and
Pharmacies (TB-ST-193).)
• Clothing and footwear sold for less than $110 per item of clothing or
per pair of shoes or other articles of footwear, and items used to make
or repair exempt clothing, except that this exemption does not apply to
any locally-imposed sales taxes unless the county or city imposing the
sales tax has elected to also provide for the exemption. (See
Publication 718-C, Sales and Use Tax Rates On Clothing and
Footwear .)For additional information on the state clothing exemption
and a listing of exempt and taxable items, see TSB-M-06(6)S, Year-
Round Sales and Use Tax Exemption of Clothing, Footwear, and Items
Used to Make or Repair Exempt Clothing, Effective April 1, 2006 ,Tax
Bulletins Lists of Exempt and Taxable Clothing, Footwear, and Items
Used to Make or Repair Exempt Clothing (TB-ST-530), and Clothing
and Footwear Exemption (TB-ST-122).
• Medical equipment and supplies. However, medical equipment and
supplies purchased for use in providing medical or similar services for
compensation, such as services of physicians, hospitals, clinical
laboratories, and ambulance companies, are subject to sales tax. (See
Publication 822, Taxable Status of Medical Equipment and Supplies,
Prosthetic Devices, and Related Items.)
• Prosthetic aids and devices, hearing aids, and eyeglasses.
• Services of laundering and dry cleaning, including carpet, drapery,
etc., and rug cleaning services.
• Newspapers, magazines, and other periodicals.
• Tangible personal property sold by any gift shop located in a veterans’
home. (See TSB-M-06(15)S, Supplemental Summary of Recently
Enacted Legislation Affecting Sales and Use Taxes Effective in 2006.)
• Shoe repair.
• Services of a licensed veterinarian constituting the practice of
veterinary medicine. (See Publication 851, A Guide To Sales Tax in
New York State for Veterinarians.)
Exempt sales – exemption certificate required
Certain purchases If you are registered for sales tax purposes, you can make certain
can be made exempt purchases exempt from sales tax that would otherwise be subject to sales
from sales tax, but tax. The purchase of inventory that will be held for resale; qualifying
only with the manufacturing equipment; packaging material; farm equipment; and certain
issuance of a tractors, trailers, and semitrailers are examples of some of these types of
properly completed purchases. For more complete information on various exemption
exemption documents and their uses, see Tax Bulletin Quick Reference Guide for
document Taxable and Exempt Property and Services (TB-ST-740).
26
|
|
Publication 750
(11/15)
Exemption certificates
You are not required You are not required to collect sales tax from a purchaser who furnishes
to collect sales tax you with a properly completed exemption certificate that you accept in good
from a purchaser faith within 90 days of the delivery of property or rendition of a service.
who furnishes you Accepting an exemption certificate in good faith means you have no prior
with a properly knowledge that the document is falsely or fraudulently issued.
completed
exemption Exemption certificates show why you did not collect tax on the sale to which
certificate within 90 the exemption certificate relates. For example, if you sell an otherwise
days, provided you taxable product to a purchaser who is going to sell the product to someone
accept the certificate else (i.e., a purchase for resale), you must collect sales tax unless the
in good faith purchaser gives you Form ST-120, Resale Certificate ,within 90 days of
your delivering the product to the purchaser. If you are audited by the Tax
Department, the certificate will show the department that you did not collect
sales tax because the purchaser certified that the transaction was not
subject to tax. You must maintain a system that associates the certificate
with the invoice or other evidence of the sale that you retain as part of your
records. For a list of the various exemption certificates and their uses, see
Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240).
The purchaser must If a transaction is exempt from sales tax, the purchaser must give you a
give you a properly properly completed exemption certificate or other required documentation
completed within 90 days of the delivery of the product or the rendition of the service
exemption being purchased, or within 90 days of the hotel occupancy or payment of the
certificate within 90 amusement charge. If you accept a certificate after 90 days, both you and
days the purchaser share the burden of proving that the sale was exempt, and
additional substantiation may be required. Also, both you and the purchaser
may be liable for any tax, penalties, and interest due in the event the sale is
determined to be taxable.
Single transaction The purchaser may give you an exemption certificate for a single sale. You
certificates should attach this to your record of the sales transaction that you keep for
your files, and keep it for at least three years after the due date of the sales
tax return to which it relates, or the date the return was filed, if later.
Blanket exemption If applicable, the purchaser may instead give you a blanket exemption
certificates certificate. This certificate may be used for the current sale as well as for
subsequent sales made to that purchaser. A blanket exemption certificate
may only be used by a purchaser to cover additional sales of the same
general type. You must keep the blanket exemption certificate for three
years after the due date of the most recent sales tax return to which it
relates, or the date the most recent return was filed, if later.
Electronic resale A purchaser may issue an electronic version of a resale certificate or other
and exemption exemption document to a seller provided the e-certificates meet all
documents
27
|
|
Publication 750
(11/15)
departmental requirements as described in TSB-M-07(1)S, Electronic
Resale and Exemption Documents for Sales and Compensating Use Taxes.
Note: See page 32 for information on keeping adequate records.
Exempt purchasers
General Sales to certain individuals and organizations are generally not subject to
sales tax. Exempt purchasers include the United States and its agencies
and instrumentalities, New York State, and its local governmental agencies
and instrumentalities; the United Nations; diplomatic missions and
diplomatic personnel; exempt organizations such as religious, charitable,
scientific, and educational institutions that have qualified for exempt status
under the Tax Law; certain posts or organizations consisting of past or
present members of the armed forces of the United States; and certain
Indian nations, tribes, or individuals. In each case, the purchaser must
establish the right to the exemption by submitting the proper exemption
certificate or other documentation to the vendor. (See page 17 for more
information on sales by governmental entities and certain exempt
organizations.)
Federal, New York The United States government; an agency or political subdivision of the
State, and local United States government or New York State; or a New York State agency,
governmental authority, or political subdivision must issue a governmental purchase order
agencies or other appropriate proof that the sale is to the government to make a
purchase without paying sales tax. Purchases by another state or country or
by an agency or locality of another state or country are not exempt from tax.
The United Nations The United Nations, or any other international organization of which the
and similar United States of America is a member, must issue the proper exemption
organizations certificate to make a purchase without paying sales tax.
Other exempt Certain not-for-profit organizations (such as charitable, religious, scientific,
organizations and educational organizations) must apply for exempt organization status
for sales tax purposes. If the Tax Department grants this exempt
organization status, these organizations must issue the proper exemption
certificate.
Posts or Posts or organizations consisting of past or present members of the armed
organizations of forces of the United States, and the qualifying auxiliary units of such posts
past or present or organizations, establish their right to exemption through the issuance of
members of the the proper exemption certificate.
United States armed
forces
Indian nations, The following Indian nations or tribes residing in New York State are exempt
tribes, and organizations: Cayuga, Oneida, Onondaga, Poospatuck, Saint Regis
individuals Mohawk, Seneca, Shinnecock, Tonawanda Band of Senecas, and
Tuscarora.
28
|
|
Publication 750
(11/15)
These nations or tribes must provide the proper exemption certificate to
make purchases without paying tax.
Sales to members of recognized Indian nations or tribes are not subject to
sales tax, provided that the product is delivered to the member of the
qualified nation or tribe on a qualified reservation. The qualified reservations
are Allegany, Cattaraugus, Oil Spring, Oneida, Onondaga, Poospatuck,
St. Regis Mohawk (Akwesasne), Shinnecock, Tonawanda, and Tuscarora.
Note: Based on the Settlement Agreement by the Oneida Nation, the State
of New York, the County of Madison and the County of Oneida dated May
6, 2013, special rules now apply to a business operating on Oneida Nation
land. For more information, see Important Notice-N-15-2, Notice to
Businesses Operating on Oneida Nation Land.
See page 17 for information on sales by New York and United States
governmental entities and certain exempt organizations. For more
information, see Publication 843, A Guide to Sales Tax in New York State
for Exempt Organizations, and Tax Bulletin Purchases and Sales by
Government Entities (TB-ST-700).
Taxable business purchases
Be aware that you If you are conducting business in New York State, you should be aware that
are required to pay you mustpaysales and use taxes in the following situations, whether or not
sales and use taxes you are required to be registered for sales tax purposes:
in certain situations,
whether or not you • You purchase taxable property (such as inventory) or services without
are required to be paying taxes because you intend to resell them, but you later use the
registered for sales property or services rather than reselling them.
tax purposes • You purchase taxable property without paying taxes because you
purchased them from a seller who is located outside of New York
State, and you use that property in this state.
• You purchase property or services outside of New York State where
you pay the other state’s tax and use the property or services in
New York State and the tax paid in the other state either does not
qualify for credit against New York State and local taxes, or the tax
paid to the other state qualifies for credit but the tax rate paid in the
other state is less than the New York rate.
• You purchase taxable gas and electricity without paying taxes because
you purchased these commodities from a seller who is located outside
New York State, and your business uses that gas and electricity in this
state.
• You send property out of New York State to have a taxable service
performed on that property, do not pay tax, and then use that property
in this state.
• You purchase taxable property, services, hotel occupancy or pay
admission charges in New York State without paying taxes.
• You are a resident of a locality (county or city) in New York at the time
of a purchase and you purchase taxable property in a locality in
29
|
|
Publication 750
(11/15)
New York State that has a lower rate of tax than the (locality) where
you are a resident, and then you bring the property into the locality
where you are a resident for sales tax purposes.
• You are a resident of a locality (county or city) in New York at the time
of a purchase and you have a taxable service performed on property in
another locality in New York State that has a lower rate of tax than the
(locality) where you are a resident, and then you bring the property into
the locality where you are a resident for sales tax purposes.
You generally compute the taxes due in the above situations on the sales
price paid. Apply the combined state and local sales tax rate to the selling
price (see Calculating and stating the sales tax on page 22). If you use the
property outside New York for more than six months prior to its use within
the state, you may calculate the tax due on the lower of the selling price or
fair market value of the property. If you purchase taxable property outside of
New York State, and use the property in the performance of a contract in
New York State for a period of less than six months, you may elect to
calculate the tax due on the lower of the fair rental value of the property for
the period of use within New York State or the sales price paid. You may
only use this calculation if you do not completely consume, or incorporate
the property into real property, in New York State.
Under certain circumstances, there may be a credit available for the amount
of tax paid to another state or local jurisdiction of that state where your
business made the purchase. To determine whether the tax you paid to
another state or local jurisdiction in another state qualifies for credit against
New York State and local tax, see Tax Bulletin Reciprocal Credit for Sales
or Use Taxes Paid to Other Taxing Jurisdictions (TB-ST-765).
You do not owe tax on property or services purchased outside New York
State before you became a resident of New York State or before you began
conducting business in New York State. This rule also applies to local sales
and use taxes.
If you are registered, or required to be registered, with the Tax Department
for sales tax purposes, you must report and pay the sales and use taxes
incurred in connection with the taxable business purchases with your
business’s monthly, quarterly, or annual sales tax return. See page 33 for
information on filing your sales tax return.
If your business is not registered or required to be registered, and is not a
sole proprietorship for federal tax purposes, you must pay any use tax due
by filing Form ST-130, Business Purchaser’s Report of Sales and Use Tax,
within 20 days from the date the property or service purchased is first
brought or delivered into New York State. If your business is a sole
proprietorship, or an estate or trust carrying on a business, trade, profession
or occupation in New York State, you may remit any use tax due with your
annual personal income tax return or by filing Form ST-140, Individual
Purchaser’s Annual Report of Sales and Use Tax. An estate or trust
carrying on a business, trade, profession or occupation in New York State
may also remit any use tax due with its annual personal income tax return
30
|
|
Publication 750
(11/15)
or by filing Form ST-140.
For more information, see Tax Bulletins Use Tax for Businesses
(TB-ST-910) and Use Tax for Individuals (including Estates and Trusts)
(TB-ST-913).
Part 3 – Recordkeeping
Recordkeeping rules
Keep detailed Keeping good records of your business operation will help you prepare
records of all sales accurate and complete sales tax returns. Your returns must show gross
that are subject to sales, taxable sales, purchases subject to sales or use tax, sales and use
sales or use tax taxes due for the specific locality in which the items or services were
delivered to your customers, other special taxes due, and other information.
See Tax Bulletin Recordkeeping Requirements for Sales Tax Vendors
(TB-ST-770), for information about recordkeeping.
If you must register for sales tax purposes or if you voluntarily registered,
you must keep detailed records of all sales and credits by jurisdiction. You
must also maintain a method of associating an exempt sale to a particular
purchaser with the exemption certificate you have on file for that sale or
purchaser. If you issue exemption certificates when you make purchases,
you must maintain records of these purchases that will substantiate the
exempt use.
Keep your records You must keep your records for a minimum of three years from the due date
for a minimum of of the return to which they relate, or the date the return is filed, if later. You
three years must make the records available to the Tax Department upon request.
Sales records You must keep records of every sale, the amount paid, charged, or due on
the transaction, and the sales tax that is due, if any. If you give a written
receipt or other evidence of the sale to the purchaser, you must retain a
copy of the receipt or other evidence. Otherwise, you must keep a daily
record of all cash and credit sales in a daybook or similar journal. The
records and supporting documentation you keep must provide sufficient
detail to independently determine the taxable status of each transaction and
the amount of tax due and collected.
Delivery records You must maintain records that substantiate points of delivery of the taxable
products or services you sell if you delivered the product or service to a
place other than your place of business.
If you sell taxable products or perform taxable services within New York
State, you must charge and collect the state’s sales tax, including the state
sales tax imposed in the MCTD, if applicable, plus the sales tax due to the
locality where the property or service is delivered. This is true regardless of
where you made the sale. However, as indicated on page 23, for sales of
motor vehicles, trailers, and certain boats, the purchaser’s place of
31
|
|
Publication 750
(11/15)
residence generally controls the jurisdiction and rate of tax.
If you deliver products or perform services outside New York State, you do
not need to charge New York State sales tax on the sale, regardless of
where you made the sale.
Your invoices must clearly show the place of delivery. In addition, you
should keep documentation such as delivery receipts, parcel post receipts,
bills of lading, driver log books, or, a certified copy of the export declaration
from the foreign freight forwarder for deliveries outside the United States.
A vendor’s charges for postage and handling to deliver taxable products or
services are taxable, whether or not the vendor separately states the
charges. See Tax Bulletin Delivery Rules for New York State Sales Tax
(TB-ST-155) for information.
Purchase records You must keep detailed records of the nature, type, value, and amount of all
business purchases. You must be able to determine any sales and use tax
due on the basis of these records. To fulfill this requirement, you must keep
the purchase invoices and prepare a daily, weekly, or monthly analysis.
Maintaining records If you maintain records in an electronic format, you may need to give the
electronically Tax Department access to your equipment, computer programs, and
records. You must make your electronic records available and accessible to
the Tax Department, even if the records are also maintained in a hard copy
format. For more information, see TSB-M-09(17)S, Amendments That
Encourage Compliance with the Tax Law and Enhance the Tax
Department’s Enforcement Ability.
If you fail to keep If you fail to keep adequate records and your business is audited by the Tax
adequate records, Department, you could be held liable for substantial additional sales and
you could be liable use taxes plus penalties and interest. The penalties include:
for substantial
additional tax, • a penalty of up to $1,000 for the first quarter or part of a quarter, if you
penalties and fail to make or maintain records or make them available to the Tax
interest Department; the penalty increases up to $5,000 for each subsequent
quarter or part of a quarter that failure occurs;
• a penalty of up to $1,000 for each quarter or part of a quarter, if you fail
to make your records available in an auditable form; and
• a penalty of up to $5,000 for each quarter or part of a quarter, if you
maintain records in an electronic format and fail to make those records
available and accessible to the Tax Department.
In addition, we may suspend or revoke your Certificate of Authority if you
willfully fail to keep records and are convicted of a crime for that wilful
failure.
See TSB-M-09(17)S, Amendments That Encourage Compliance with the
Tax Law and Enhance the Tax Department’s Enforcement Ability, Tax
Bulletin Sales and Use Tax Penalties (TB-ST-805), and Publication 900,
Important Information for Business Owners, for additional information.
32
|
|
Publication 750
(11/15)
Operators of parking If you operate a parking facility in New York County (Manhattan), you have
facilities in specific recordkeeping requirements. If you operate more than one parking
Manhattan facility in Manhattan, you must keep separate records for each facility. For
more information about these requirements, see TP-832, Special
Requirements for Parking Facility Operators Located in New York County
(Manhattan) Made Permanent.
Part 4 – Filing your sales tax return
Filing requirements
You must file a sales As a registered sales tax vendor, you become a trustee for the state and
tax return on time must file your sales and use tax returns on time. You also must remit any
even if you did not tax due, including any tax that you have not yet collected from purchasers
have any taxable on sales occurring during the filing period. You must file a sales and use tax
sales or business return on time, even if you have no tax due during the filing period. Sales
purchases subject tax returns are generally due no later than 20 days after the period to which
to use tax during the they relate has ended.
filing period
If you fail to file a sales tax return on time, we will calculate penalty and
interest on the amount of tax due. We will also impose a penalty of at least
$50, whether or not there is any tax due. Therefore, it is very important that
you know the dates your returns must be filed, and that you remit any tax
due on time.
Most registered sales tax vendors must Web File their returns and remit any
sales tax due through the Online Services section of our website. For more
information on Web filing, see Web filing and fill-in form, on page 34 and
Tax Bulletin E-File Mandate for Businesses (TB-MU-210) . Sales tax returns
are also available on the Tax Department’s website or by contacting us
directly.
For other sources of information regarding filing your sales tax return, see
Tax Bulletins Filing a Final Sales Tax Return (TB-ST-265), Filing Period
Indicators on Final Sales Tax Returns (TB-ST-270), and Filing
Requirements for Sales and Use Tax Returns (TB-ST-275).
Quarterly filing When you first register, you will be classified as a quarterly filer unless you
meet the limited conditions described under Annual filing, below. The
quarterly returns cover the periods March 1 through May 31, June 1 through
August 31, September 1 through November 30, and December 1 through
February 28 (29 in a leap year). As a result, if you are a quarterly filer, you
will be required to file quarterly returns by June 20, September 20,
December 20, and March 20.
Monthly filing If the combined amount of your taxable sales and purchases subject to
sales or use tax totals $300,000 or more in a quarter, you must file monthly
(also referred to as part-quarterly) returns. The change to monthly filing
33
|
|
Publication 750
(11/15)
status is effective the first month following the quarter in which you exceed
$300,000 in taxable transactions. Since we may not receive the quarterly
return used as the basis for determining when you must begin filing monthly
in time to change your filing status, it is your responsibility to notify the Tax
Department of a change in your filing status, and file a return for the first
month you are required to file monthly. You must continue to file monthly
until your taxable sales and purchases are less than $300,000 for four
consecutive quarters, at which time you may request a change to quarterly
filing status. Monthly returns are due no later than 20 days after the month
to which they apply.
You must also file monthly if you are a distributor of petroleum products and
your sales of petroleum products total 100,000 gallons or more in a quarter.
Since we may not receive the quarterly return used as the basis for
determining when you must begin filing monthly in time to change your filing
status, it is your responsibility to notify the Tax Department of the change
and file a return for the first month you are required to file monthly. You
must continue to file monthly until sales of petroleum products total less
than 100,000 gallons in four consecutive quarters, at which time you may
request a change to quarterly filing status.
Annual filing You will automatically be classified as an annual filer if, on your registration
application, you:
• indicate that you do not expect to pay or collect any sales or use tax;
and
• describe your major business activity as a manufacturer or wholesaler
that does not make retail sales.
In addition, the Tax Department may reclassify you as an annual filer if your
total tax due for the four most recently filed quarterly periods (March through
February) did not exceed $3,000. The Tax Department will notify you if you
are reclassified as an annual filer.
The annual return covers the period March 1 through February 28 (29 in a
leap year). Since sales tax returns are generally due within 20 days after the
end of the reporting period, you must file an annual return by March 20 each
year.
Web filing and fill-in Most vendors must Web File their sales tax returns and remit any sales tax
form due through the Online Services section of our website. You will need to
create an Online Services business account before you can Web File.
As a sales tax vendor, you must Web File all authorized tax documents if
you:
• prepare tax documents yourself without the assistance of a tax
professional;
• use a computer to prepare, document, or calculate the required filings;
and
• have broadband internet access.
34
|
|
Publication 750
(11/15)
You can enroll in our subscription service on our website to receive prompt
notification of additional online services and electronic filing requirements as
they become available.
For additional information on sales tax return filing requirements and
options, visit the Tax Department’s website at www.tax.ny.gov or contact us
directly.
E-file mandate for For returns filed on or after January 1, 2013, tax return preparers that meet
tax return preparers either of the following conditions must file returns electronically:
• You or your firm prepared at least one authorized tax document for
more than 10 different taxpayers during the previous calendar year
and used tax software to prepare one or more of these tax documents.
An authorized tax document includes any document that the Tax
Department authorizes to be e-filed.
• You were previously subject to the mandate. Once subject to the e-file
mandate, you must continue to e-file all of your clients’ authorized tax
documents in future years, regardless of the number of taxpayers you
prepare returns for.
You’re a tax return preparer if you prepare any New York State return or
claim for refund for compensation; or you receive compensation for returns
or claims for refund prepared by people who you employ or engage.
The e-file mandate applies to preparers located within and outside
New York State.
For more information on the e-file mandate for tax return preparers, see Tax
Bulletin E-File Mandate for Tax Return Preparers (TB-MU-220).
Completing your sales and use tax return
Your return is used Your return and any required schedules are used to report your business
to report your activity. Use them to report your gross sales, taxable sales, total non-
business activity taxable and exempt sales, purchases subject to use tax, and the total
amount of the credits you are claiming on the return. You will also report the
amount of your debit and credit card purchases. You must also report any
special taxes you collected, or were required to collect, and compute the
amount of sales and use tax you must remit with the return.
Your return must There are more than 80 separate jurisdictions (cities, counties, and school
report your districts) statewide that impose local sales and use taxes. Your return and
businesses’ any required schedules are also used to report, for each of these
activities by jurisdictions, the amounts of your sales, purchases, and credits by
jurisdiction jurisdiction, and the amount of sales or use tax you owe for each
jurisdiction. Therefore, you must know your gross sales and purchases;
your taxable sales, purchases, and credits; the amount of tax you collected
or were required to collect; and the jurisdiction in which these transactions
35
|
|
Publication 750
(11/15)
occurred.
Tax remitted based You may keep your books using the cash or accrual method of accounting.
on accrual method No matter which recordkeeping method you choose to record your
of accounting business’s transactions, you must report any sales made, and remit the
applicable sales tax based on the accrual method of accounting. That is,
you are required to report taxable sales and remit the tax due on the return
covering the period in which the sales are made, regardless of whether your
customer has paid you.
Note: If you are a materialman (a supplier of building materials), see
TSB-M-99(2)S, Materialmen - Pay When Paid, and Tax Bulletin
Materialmen and the Pay-When-Paid Option (TB-ST-555), for information
on the rules relating to when you may report and remit sales tax due using
the cash method of accounting.
Vendor collection If you file your return on time and remit the amount of sales and use tax due
credit on time, you may be entitled to claim a vendor collection credit on your
return. The credit is equal to 5% of all taxes and fees collected and paid up
to a maximum of $200 per quarter or longer period. For additional
information, see Tax Bulletin Vendor Collection Credit (TB-ST-925).
Remitting the tax You must remit the tax due on or before the due date. If you file or pay late
due you will be subject to penalties and interest. In addition, we may impose a
bad check or failed electronic withdrawal fee, if necessary.
Certain large vendors must remit a portion of the state and local sales and
use tax due for each period (including prepaid sales and use taxes due on
motor fuel and diesel motor fuel) by EFT or certified check through the
PrompTax payment program. We will notify you if you must make this type
of payment.
Taxpayers may also voluntarily enroll to remit payments by EFT. For more
information about the PrompTax program, visit our website at
www.tax.ny.gov/bus/prompt.
Mailing your sales If you are not Web filing, send your sales tax return to the address shown
tax return on the return.
In addition to the United States Postal Service, you may use certain private
delivery services to assure that returns, payments, and other
correspondence mailed on time will be considered filed on time. The private
delivery services that we currently treat in the same manner as the
United States Postal Service are listed in Publication 55, Designated Private
Delivery Services.
36
|
|
Publication 750
(11/15)
Part 5 – Show and entertainment promoters
Show promoters
A show promoter is A show promoter includes any person who, directly or indirectly, grants the
a person who use of a location to any person for the display for sale or for the sale of
organizes or taxable products or services, at four or more shows, or who operates four or
operates a show by more shows, during a calendar year. An example of a person who indirectly
granting the use of a grants such use of a location is a person who leases space to a person who
location intends to operate a show. Show promoters may own or lease parking lots,
shopping malls, hotels, or any other place where shows are held. Show
promoters can be individuals, business groups, trade associations,
government agencies, or nonprofit organizations.
The term show includes flea markets, craft shows, antique shows, coin
shows, stamp shows, comic book shows, fairs, and similar shows, whether
the show is held regularly or is an occasional event, at which more than one
vendor displays for sale, or makes sales of, taxable products or services.
If you operate four If a show promoter operates four or more shows during the calendar year,
or more shows or leases property or space to others who, in the aggregate, operate four or
during the calendar more shows, the show promoter must register before the fourth show and
year, or lease get a permit from the Tax Department to operate a show. However, a show
property or space to promoter who operates fewer than four shows during a calendar year does
others who operate not have to register as a show promoter with the Tax Department for that
four or more shows, year.
you must obtain a
show permit. A show is a single event lasting up to seven consecutive days. On the
eighth consecutive day, a second show automatically begins; on the
fifteenth consecutive day, a third show begins; and so forth. If there is a
break between show dates, a new show automatically starts on the first day
after the break. If one or more days of a show are rained out, or canceled
due to some other uncontrollable event, the break does not automatically
start a new show.
Filing for a show A show promoter must file Form DTF-723, Application for Show Permit and
permit Notice of Show, at least 10 days before the fourth show opens. A show
promoter needs only one permit for all shows held at the same location
during the calendar year, but the shows must be listed individually on the
application and on the back of the permit. A show promoter must file
Form DTF-723 at least 10 days before each additional show that is held at a
different location, or for each show that is not listed on the permit held by
the promoter.
If the application for a show promoter’s permit is approved, the Tax
Department will send the applicant a validated Form DTF-724, Permit to
Operate a Show, within five days after receiving a properly completed
37
|
|
Publication 750
(11/15)
application. The show promoter must display the validated permit at the
main entrance to the show where everyone can see it.
Responsibilities of a A show promoter cannot let anyone at the show offer for sale, or make
show promoter sales of, taxable products or services unless that person is registered as a
vendor with the Tax Department. A show promoter must, in addition, make
sure that each vendor who is making sales of products or services at the
show clearly displays a valid Certificate of Authority.
Record-keeping and Starting with the fourth show, the show promoter must keep a record of
filing requirements each vendor who participates in the show. These records must have the
following information for each vendor: name, address, New York State
Certificate of Authority number (include vendors who claim that their sales
are tax exempt), and amount of rent paid. You must keep these records for
at least three years, unless the Tax Department gives you permission to
destroy them earlier.
Show promoters must file Form DTF-727, Report of Show ,within 20 days
after the end of the month in which a show is scheduled to be held. They
must file a separate report for each show scheduled in that month. If the
dates of a single show include the last day of one month and the first day of
the next month, that show may be reported as though all dates of that show
occurred in the second month. They must file this report even if a scheduled
show was canceled. Form DTF-727-I, Instructions for Form DTF-727,
Report of Show, gives detailed instructions on how to complete and file the
report.
Show promoters must return Form DTF-724, Permit to Operate a Show, to
the Tax Department along with Form DTF-727 that covers the last show
date indicated on the permit.
When a show has more than one promoter, each promoter must file
Form DTF-727, but only one promoter needs to submit a list of participating
vendors (as shown on the back of Form DTF-727). However, each promoter
is responsible for ensuring that we receive the list of participating vendors.
Promoters who do not list participating vendors must include on their
Form DTF-727, the names, addresses, and show permit numbers of the
other promoters, and indicate which one is submitting the list of vendors.
Entertainment promoters
An entertainment An entertainment promoter includes any person who, directly or indirectly,
promoter is an owns or operates a facility or site where entertainment events are held, and
owner or operator of who allows vendors to make sales of tangible personal property at an event.
a facility where An entertainment promoter may also be someone who, directly or indirectly,
entertainment rents, leases, or grants a vendor a license to use space at an entertainment
events are held event or who has management responsibility with respect to those vendors
making sales at such event.
38
|
|
Publication 750
(11/15)
An entertainment event includes a concert, an athletic contest or exhibition
(other than an amateur sports competition), and other similar forms of
entertainment such as a musical show, dramatic play, rodeo, auto race, or a
dog show, where:
• the persons performing at the event give less than four performances
per week at the same location where the event occurs, or in the case
of athletic contests or exhibitions between teams, no one team
competes in more than four contests per year at that location; and
• the facility or site where the event is held holds more than 1,000
people.
Example: A professional football team that plays 10 games a year at its
home field hosts an out-of-state team to play a regular season game.
This game is not considered to be an entertainment event because one
of the teams competes at that location more than four times a year.
The term entertainment event does not include events such as high school
or college athletic games, little league games, or festivals featuring amateur
sporting events. In the case of concerts, plays, shows or other similar forms
of entertainment, the term entertainment event does not include an event
that consists of four or more performances by the same person or persons
during a weekly period at the same facility or site.
Filing for an If sales of tangible personal property are going to be made at one or more
Entertainment entertainment events, the promoter must file Form DTF-728, Application for
Promoter Certificate Entertainment Promoter Certificate, at least 20 days before the first
entertainment event is held. The Tax Department will, within 10 days after
receiving a properly completed Form DTF-728, send the entertainment
promoter a validated Form DTF-729, Entertainment Promoter Certificate ,if
the application is approved.
An entertainment promoter only needs one certificate for all events held at
the same location during the calendar year, and those events must be listed
on the back of the permit. An entertainment promoter must file
Form DTF-728 for each additional event held at a different location or for
each event not listed on the original permit held by the promoter.
Responsibilities of An entertainment promoter cannot let anyone at the entertainment event
an entertainment offer for sale, or make sales of, taxable tangible personal property unless
promoter that person is a registered vendor. The entertainment promoter must also
make sure that each vendor making sales of taxable products at the event
displays a valid Certificate of Authority. Entertainment promoters who allow
an unregistered vendor to make taxable sales of tangible personal property
at an entertainment event may be subject to a substantial penalty.
An entertainment promoter must keep records of the name, address, and
Certificate of Authority number of every vendor that the entertainment
promoter authorizes to make taxable sales, at each entertainment event for
which he or she is a promoter.
39
|
|
Publication 750
(11/15)
An entertainment promoter must also file Form DTF-730, Report of
Entertainment Event, within 20 days after the end of the month in which an
entertainment event was scheduled to be held. The entertainment promoter
must file this report even if an event was canceled. Form DTF-730-I,
Instructions for Form DTF-730, provides detailed instructions on how to
complete this report.
If the dates of a single event include the last day of one month and the first
day of the next month, that event may be reported as though the entire
event occurred in the second month.
The promoter must return Form DTF-729, Entertainment Promoter
Certificate, to the Tax Department along with Form DTF-730 covering the
last event date on the permit.
These requirements apply to entertainment promoters whether or not they
charge admissions for the event, and whether or not any charges for
admissions are taxable. If there is more than one entertainment promoter
for any entertainment event, the requirement imposed on an entertainment
promoter will be satisfied if any one promoter complies with the
requirement.
Part 6 - Purchasing or acquiring a business or its assets: Caution
Bulk sales transactions
If you are acquiring If you are purchasing or otherwise acquiring some or all of the business
business assets of assets of an existing business that is registered or required to be registered
an existing for sales tax purposes, other than in the ordinary course of the seller’s
business, you may business, you may be held personally liable for any sales taxes the seller
be held liable for any owes the Tax Department. You may be held liable for the amount of the
sales taxes that are seller’s unpaid sales and use taxes, up to the sales price or fair market
due to the Tax value of the assets you purchased or acquired, whichever is greater. This
Department from the applies whether the assets you are acquiring are tangible personal property,
seller/transferor intangible property, or real property.
The sale, transfer, or assignment of business assets, in whole or in part, by
a person required to be registered for sales tax purposes, other than in the
seller’s ordinary course of business, is called a bulk sale transaction.
As the purchaser, transferee, or assignee (hereinafter, the purchaser) in a
bulk sale transaction you will not be held liable for the seller’s unpaid sales
and use tax liability if you comply with all of the requirements listed below.
• Notify the Tax Department – You must notify the Tax Department of
the pending bulk sale transaction at least 10 days before paying for
or taking possession of any business assets, whichever occurs
first, by filing Form AU-196.10, Notification of Sale, Transfer, or
Assignment in Bulk.
40
|
|
Publication 750
(11/15)
You must send Form AU-196.10 by registered mail, certified mail with
return receipt, or it can be hand delivered, to the address on the form.
The seller is supposed to advise you of this notification requirement,
but if the seller does not, that does not relieve you of liability for the
th
seller’s unpaid sales and use taxes. When the 10 day falls on a
Saturday, Sunday, or legal holiday in New York State, notice will be
considered timely if given on the next succeeding day which is not a
Saturday, Sunday, or legal holiday in New York State.
• Withhold consideration payable to the seller until authorized to release
it by the Tax Department – Within five business days of receiving Form
AU-196.10, the Tax Department will advise you as to whether the
seller has unpaid sales and use taxes. If the seller has unpaid sales or
use taxes or is selected for additional review or audit, the Tax
Department will send you Form AU-196.2, Notice of Claim to
Purchaser, which will require you to not release any consideration to
the seller until authorized by the department.
If the seller does not have any unpaid sales or use taxes and if an additional
review or audit is not necessary, the Tax Department will issue to you
Form AU-197.1, Purchaser’s and/or Escrow Agent’s Release-Bulk Sale.
If the department does not issue Form AU-196.2 to you within five business
days of the date it received your properly completed, timely filed AU-196.10,
or if the department incorrectly sends you Form AU-197.1, you will not be
held liable for any of the seller’s unpaid sales and use taxes under
section 1141(c) of the Tax Law, and you may pay the seller the full
purchase price. However, the assets you purchased from the seller may be
subject to the department’s liens if there are outstanding warrants or
judgments against the seller for past unpaid sales and use taxes.
For purposes of the department’s obligation to respond within five business
days, the date of receipt of Form AU-196.10 by the department will be the
date it was actually delivered to the Bulk Sales Unit of the Audit Division, but
no earlier than 10 days before the later of the scheduled date of sale or the
actual date of sale. The actual date of sale is deemed to be the earlier of the
date of payment or the date the purchaser takes possession of the assets
acquired.
If you receive Form AU-197.1 – You may pay the seller the full purchase
price. The department will not hold you liable for any of the seller’s unpaid
sales or use taxes, although the assets you purchased may be subject to
the department’s liens if there are outstanding warrants or judgments.
If you receive Form AU-196.2 – You will be advised not to pay the seller
until the Tax Department completes its review of the seller’s sales tax
account. Within 90 days of the receipt of Form AU-196.10, the department
must notify you (and the seller) of the actual amount of sales and use taxes
the seller owes for which you can be held liable on account of the bulk sale.
Upon receipt of Form AU-196.2, you may wish to consult a tax practitioner
about the best course of action to take.
41
|
|
Publication 750
(11/15)
For more information on bulk sale transactions, see TSB-M-83(6)S,
Guidelines for Bulk Sales Transactions and Tax Bulletin Bulk Sales
(TB-ST-70).
You may owe sales and use taxes on the business assets purchased
In addition to your obligations and requirements with respect to sales and
use taxes accrued and determined to be due to the department from the
seller, you are also responsible for paying the sales and use taxes due, if
any, on your purchase of any tangible personal property as part of a bulk
sale transaction. Sales and use taxes are not imposed on the sale or use of
real property or intangible assets, such as goodwill.
Sales tax registration requirements – If, as the owner of a new business,
you will be making taxable sales, issuing or accepting certain exemption
certificates, charging rent for hotel or motel rooms or making admission
charges, you must register for sales tax purposes. See Tax Bulletin How to
Register for New York State Sales Tax (TB-ST-360). You will find step by
step instructions on how to apply for a Certificate of Authority using New
York Business Express.
The following examples illustrate some common transactions that are and
are not bulk sales:
Example: Corporation A, a person required to collect sales tax, sells its
business assets to Corporation B. This sale is a bulk sale transaction.
Example: Corporation A, a person required to collect sales tax,
transfers all of its business assets to Corporation B in exchange for
stock in Corporation B. The transfer of Corporation A’s assets to
Corporation B is a bulk sale transaction.
Example: Corporation A purchases all the issued and outstanding
stock of Corporation B, a person required to collect sales tax.
Corporation A and Corporation B will continue to exist as separate legal
entities. Since the business assets of Corporation B have not been
transferred in connection with the sale of its stock, this is not a bulk sale
transaction.
Example: Corporation A, a person required to collect sales tax, sells its
entire inventory which is purchased by Corporation B for resale. The
sale by Corporation A is a bulk sale transaction.
Example: Mr. Smith, a person required to collect sales tax, makes a gift
of all of his business assets to another person. This transfer is a bulk
sale transaction.
42
|
|
Publication 750
(11/15)
Appendix – List of common sales tax forms
Business account updates:
DTF-95 .......... Business Tax Account Update
DTF-96 .......... Report of Address Change for Business Tax Accounts
Sales tax returns:
ST-100 .......... New York State and Local Quarterly Sales and Use Tax Return
ST-101 .......... New York State and Local Annual Sales and Use Tax Return
ST-809 .......... New York State and Local Sales and Use Tax Return for Part-Quarterly (Monthly) Filers
ST-810 .......... New York State and Local Quarterly Sales and Use Tax Return for Part-Quarterly (Monthly)
Filers
Sales tax exemption forms:
ST-120 .......... Resale Certificate
ST-120.1 ....... Contractor Exempt Purchase Certificate
ST-121 .......... Exempt Use Certificate
ST-124 .......... Certificate of Capital Improvement
ST-125 .......... Farmers and Commercial Horse Boarding Operator’s Exemption Certificate
Other sales tax forms:
AU-11 ............ Application for Credit or Refund of Sales or Use Tax
AU-12 ............ Application for Credit or Refund of Sales or Use Tax – Qualified Empire Zone
Enterprise (QEZE)
AU-196.10 ..... Notification of Sale, Transfer, or Assignment in Bulk
ST-130 .......... Business Purchaser’s Report of Sales and Use Tax
ST-140 .......... Individual Purchaser’s Annual Report of Sales and Use Tax
43
|
| Notes |
| Notes |
| Notes |
| No text to extract. |
|
Publication 750
(11/15)
Need help?
Telephone assistance
Visit our Web site at www.tax.ny.gov
• get information and manage your taxes online Sales Tax Information Center: (518) 485-2889
• check for new online services and features
To order forms and publications: (518) 457-5431
Text Telephone (TTY) Hotline (for persons with Persons with disabilities: In compliance with the
hearing and speech disabilities using a TTY): If you Americans with Disabilities Act, we will ensure that our
have access to a TTY, contact us at (518) 485-5082. lobbies, offi ces, meeting rooms, and other facilities
If you do not own a TTY, check with independent are accessible to persons with disabilities. If you have
living centers or community action programs to fi nd questions about special accommodations for persons
out where machines are available for public use. with disabilities, call the information center.
NYS TAX DEPARTMENT
W A HARRIMAN CAMPUS
ALBANY NY 12227
|