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TSB-M-13(7)C
TSB-M-13(6)I
TSB-M-13(11)M
TSB-M-13(1)MCTMT
TSB-M-13(7)S
October 22, 2013
Purchases by an approved business eligible for a refund or credit. For purchases and
uses of property and services to be eligible for a credit or refund, the property or services (other
than the section 1105(b) consumer utility services discussed below) must be directly and
predominantly used or consumed by an approved business at its location in a tax-free NY area.
For purposes of the credit or refund, predominantly means more than 50%.
Consumer utility services (other than telephony and telegraphy, telephone and telegraph
services, and telephone answering services) and prepaid telephone calling services must be used
or consumed directly and exclusively (100%) by an approved business at its location in a tax-free
NY area. Consumer utility services include sales of gas, electricity, refrigeration, and steam, as
well as gas, electric, refrigeration, and steam services of whatever nature. Telephony and
telegraphy, telephone and telegraph services, and telephone answering services must be
delivered and billed to the approved business at an address at its location in the tax-free NY area.
Mobile telecommunications services purchased by an approved business will qualify for the
credit or refund where the approved business’s place of primary use is at its location in a tax-free
NY area. See TSB-M-02(4)C, (6)S, Amendments Affecting the Application of the Sales and Use
Tax and Excise Tax Imposed on Mobile Telecommunications Service, for additional information
on the application of sales tax to mobile telecommunications services.
The credit or refund for an approved business located in a tax-free NY area does not
apply to:
• the sales tax imposed under section 1105(d) of the Tax Law on sales of food or drink at
restaurants, taverns, or other establishments, or by caterers;
• the sales tax on rent for hotel occupancy imposed under section 1105(e) of the Tax
Law;
• the sales tax on admission charges and dues imposed under section 1105(f) of the Tax
Law; and
• the sales tax on transportation services imposed under section 1105(c)(10) of the Tax
Law.
Contractors, subcontractors, and repairmen. Contractors, subcontractors, and repairmen
are eligible to claim a credit or refund for New York State and local sales and use tax, including
the MCTD state sales tax, paid on purchases of tangible personal property used in erecting a
structure or building for an approved business at its location in a tax-free NY area; or for use in
adding to, altering, improving, maintaining, servicing, or repairing real property, property, or
land of an approved business at its location in a tax-free NY area. This credit or refund is
available for purchases of tangible personal property that becomes an integral component part of
the approved business’s structure, building, real property, property, or land.
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