New York State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in New York, with full citations and the original source on every page.
No New York rulings match these filters
Try a different search term or clear the filters.
Are a home electrical safety inspection ('survey') and mandatory municipal code-compliance electrical inspections subject to New York sales tax?
It depends on who buys it and why. A voluntary electrical safety inspection ('survey') is a taxable real-property-maintenance service when purchased by the property's owner or lessee, but is NOT taxab…
Does a New York business have to charge sales tax on dog-walking fees?
No. Dog walking is not subject to New York sales tax because Tax Law § 1105(c) only taxes specific enumerated services, and dog walking is not one of them.
Does a vendor selling zeppoles (fried dough) from a mobile trailer at festivals and carnivals have to charge New York sales tax?
No. Zeppoles sold cooled, bagged, and unheated for takeout from a mobile trailer at festivals and carnivals are exempt food products, similar to donuts, and are not taxed as restaurant food because th…
Can a centralized advertising subsidiary buy and resell promotional materials to its affiliated retail companies tax-free when the materials are mailed free to customers in New York?
Yes. A newly formed advertising subsidiary can purchase promotional materials and related production services tax-free for resale, and its sales of those materials to affiliated retail companies are e…
Can an asbestos-removal contractor get a refund of the sales tax it paid on disposable supplies (bags, suits, filters, encapsulant) that get contaminated and are transferred to its clients as part of the job?
Yes, mostly. An asbestos-removal contractor may claim a refund or credit for sales tax paid on disposable supplies (filters, bags, suits, gloves, tape, encapsulant, and similar items) that become cont…
Was wine used in a New York winery's wine tastings exempt from sales and use tax before the wine-tasting exemption's December 1, 1997 effective date?
No. New York's wine-tasting exemption (Tax Law § 1115(a)(33)) only applies to wine used in tastings on or after its December 1, 1997 effective date; wine used in tastings before that date remains subj…
Is installing a retractable synthetic awning on a house a capital improvement, so it's exempt from New York sales tax?
Yes. Installing a retractable awning made of a durable synthetic fabric (not canvas), bolted to brackets on the roof so that removing it would damage the roof, is an exempt capital improvement, follow…
Are the display 'counterbooks' a sewing-pattern maker sells to retailers, and the equipment used to make them, exempt from New York sales tax?
Yes, largely. A sewing-pattern manufacturer's 'counterbooks' (retailer display catalogs) qualify for the resale exemption when purchased from an outside printer, and machinery and equipment used direc…
Is a membership magazine that's mostly advertising for the publisher's own services taxable when mailed to members, sold to non-members, or handed out free at the counter?
It depends on how the publication is distributed. AAA's 'Destinations' magazine doesn't qualify as an exempt periodical because it's mostly advertising for AAA's own services, but copies mailed free t…
Is a computer company's point-of-sale system maintenance agreement -- covering both hardware repairs and software support -- taxable, and what about travel charges and order-cancellation fees?
A point-of-sale system maintenance agreement that bundles taxable elements (prewritten software upgrades, hardware repair) with nontaxable elements (software consulting, diagnostics, training) is full…
Can a company building a facility through an Industrial Development Agency deal buy, lease, install, and maintain the project's property tax-free when it acts as the agency's disclosed agent?
Yes, largely. When a company acts as the disclosed agent of an Industrial Development Agency (IDA) -- with purchase invoices and contracts naming the IDA as purchaser, lessor, or lessee -- its purchas…
Is a computer systems-integration consulting firm's charges for hardware, software, and support services subject to New York sales tax?
It depends on which service is being billed. Pure consulting, project management, systems management, and technology planning are not taxable; selling and installing computer hardware is taxable; sell…
Is a service that collects driving-complaint calls and reports them to the vehicle owner subject to New York sales tax?
No. A service that collects driving-complaint calls through a toll-free number and reports them only to the individual subscriber (never incorporated into reports shared with others) qualifies as exem…
Our nonprofit hospital is building a new emergency facility, ICU, and parking structure using an off-balance-sheet 'synthetic lease' financing: we'll ground-lease our own land to a trust controlled by our lender for 49 years (nominal $1/year rent), the trust will lease it right back to us on a triple-net basis for up to 15 years while we actually build and pay for the improvements, and at the end we'll almost certainly exercise an option to buy back the trust's position. We have a sales tax exemption certificate as a nonprofit. Does this lease-and-leaseback structure trigger sales tax on construction materials/services, mortgage recording tax on the lease documents, or New York's Real Estate Transfer Tax on any part of the transaction (including our eventual buyback)?
Exempt across all three taxes, though for different reasons in each case. Beth Israel Medical Center ('Petitioner'), a voluntary nonprofit hospital and Tax Law Section 1116(a)(4) exempt organization, …
Do a public warehouse's added services -- contract negotiation, site visits, and quality-control inspections -- change its status as a fulfillment-services provider, and do out-of-state customers get New York nexus by using it?
The added steps do not change the result. Distribution Unlimited's public-warehousing activities -- including the new contract-negotiation, site-evaluation, and periodic inventory and quality-control …
Are a contractor's purchases of construction materials for a town-owned recreation facility exempt from New York sales tax, even though the contractor pays for construction and later gets a license fee to operate the facility?
Yes. Because the Town of Tonawanda will own and hold title to the recreation facility throughout construction and afterward, the contractor's purchases of materials that become an integral part of the…
If a mail-order retailer closes all its physical New York stores but keeps selling by catalog and internet, does it still need to collect New York sales tax?
No, once its physical presence ends. A mail-order retailer that closes all its New York retail stores and no longer employs in-state salespeople loses its New York sales tax nexus, even if it continue…
Is a moisture-survey company's roof inspection service subject to New York sales tax?
Generally yes. A roof moisture-inspection service is taxable as maintaining or servicing real property, but it's not taxed if it's performed solely for mandatory government code compliance, or if the …
Can a tire retailer buy tire-disposal service tax-free for resale when it charges customers a separate disposal fee for their old tires?
No. A tire retailer's charge to customers for disposing of old tires isn't itself an enumerated taxable service, so the retailer cannot treat its purchase of trash-removal service from a scrap tire pr…
Are fees for commercial security alarm monitoring, the sale/installation of the alarm system, and maintenance/repair charges subject to New York sales tax?
Yes, largely. A commercial security alarm system generally isn't a capital improvement (except separately stated wiring and cables sold to a property owner), so its sale, installation, monitoring fees…
Are fees for residential security alarm monitoring, the equipment used to provide it, and related installation/repair charges subject to New York sales tax?
Yes, largely. Fees for residential security alarm monitoring services, installation and repair of the equipment, and patrol car services are all taxable protective and detective services or installati…
Is buying and installing custom wood athletic lockers at a private golf club a capital improvement exempt from New York sales tax?
Yes. Custom wood athletic lockers built to a golf club's specific dimensions and installed like kitchen cabinets, with matching spacers, fillers, and moldings, qualify as a capital improvement because…
Are floating docks and their connecting ramps a capital improvement, so their sale and installation are exempt from New York sales tax?
No. Floating docks and their connecting ramps are not capital improvements because they aren't affixed to the shore or bottom with any real permanency -- they must move minimally with the tide, are de…
Is a bank trade-processing software license taxable as prewritten software even when the vendor must customize hundreds of settings before delivery, and are later custom modifications and support separately taxed?
Yes, mostly. The base trade-processing software license is taxable prewritten software even though the vendor must configure over 900 system settings for each customer before delivery, because the sof…
When a landlord buys electricity and its transportation separately and resells both to submetered tenants, is the entire charge taxable even if the components are separately stated?
Yes. A landlord who purchases electricity from one supplier and arranges transportation from the utility, then resells both to submetered tenants as electric service, must charge sales tax on the enti…
Are data-processing, remote-access, and information-storage billing services subject to New York sales tax when the resulting data isn't shared with other customers?
No. Billing and customer-care data processing, remote access, management reports, and information storage aren't taxable information services when the processed data belongs to and is reported back on…
Can an aviation-services company avoid charging sales tax on airport flowage fees and its own fuel surcharge that it passes through to customers?
No, generally. Airport-imposed flowage and concession fees, and the company's own 'into plane' fuel surcharge, are business expenses that become part of taxable receipts when passed on to non-airline …
Do specialized trade and legal newsletters qualify for New York's periodical sales tax exemption, including in electronic formats?
Yes. Twenty-three specialized print newsletters covering law, business, and industry news qualify as exempt periodicals under Tax Law § 1115(a)(5) even though they aren't general-interest 'newspapers'…
Does transferring a vehicle's DMV registration to a commonly owned company, without transferring title, trigger New York sales tax?
It can. Transferring a vehicle's registration to another company, even one commonly owned by the same person and even without transferring legal title, is a transfer of possession that counts as a tax…
Are dialysis machines, artificial kidneys, and their disposable blood-line tubing exempt from sales tax when a manufacturer sells them to New York hospitals and clinics?
Yes. Dialysis machines, artificial kidneys, and the connected disposable tubing/connectors used in hemodialysis all qualify as exempt prosthetic devices under Tax Law § 1115(a)(4), because together th…
Is the admission fee to a children's indoor play center with climbing equipment subject to New York sales tax?
Yes. A single admission fee that lets children enter and use non-moving recreational equipment like climbing apparatus at an indoor play center is a taxable admission charge to a 'place of amusement,'…
Are dialysis machines and a dialyzer reprocessing system purchased by a dialysis clinic exempt from New York sales tax?
Dialysis machines are exempt as prosthetic devices under Tax Law § 1115(a)(4), regardless of who buys them or why -- but a dialyzer reprocessing system, which only cleans and readies the artificial ki…
Is installing a new solid epoxy floor over an existing concrete floor a taxable service or an exempt capital improvement?
It's an exempt capital improvement, not a taxable service. A new solid epoxy floor built up in place over an existing concrete floor is 'flooring,' not 'floor covering,' so it isn't subject to New Yor…
Are the printing services and production equipment a stamp retailer buys to create 'first day cover' envelopes for resale exempt from sales tax?
Yes, mostly. Printing services a retailer buys to produce envelopes it resells to customers are exempt as purchases for resale (with a resale certificate), and the film negatives, color separations, a…
Does a licensed architect and engineer's litigation-support research, reports, and expert-witness testimony for attorneys get taxed as a service or as a sale of the drawings and reports it produces?
No, generally. Professional architectural and engineering services -- research, analysis, written reports, presentation drawings, and expert-witness testimony -- aren't among New York's enumerated tax…
Does a manufacturer of CV-joint grinding machines have to collect sales tax when it sells them to auto parts remanufacturers and repair shops?
It depends on how the buyer uses the machine. Sales to remanufacturers and parts distributors who use the grinder to produce CV joints for sale are exempt if over half the machine's use is in producti…
Is a yacht charter company's cruise fee taxable as an equipment rental, and are its liquor and catering charges taxable too?
The bare cruise fee is an exempt transportation service, not a taxable rental, because the company keeps full dominion and control of the yacht -- but once the company sells liquor or arranges caterin…
Does a nonprofit news cooperative owe sales tax on the information services it buys for its members, or on production equipment and utilities it provides at member newspapers?
No, mostly. Because a nonprofit news cooperative's information-service purchases (like stock quotes and weather data) are used by its member newspapers and broadcasters in the collection and dissemina…
Can a construction contractor buy materials tax-free using a customer's Direct Payment Permit?
No. A contractor must still pay sales tax on all materials it buys for repair or capital-improvement work, even when the customer holds a Direct Payment Permit -- the permit only excuses the contracto…
Does New York sales tax apply when an artist sells or licenses a design rendering to an architect, interior designer, fashion house, or manufacturer?
It depends on what's actually transferred: selling an original rendering, or letting a client alter or keep it, is a taxable sale of tangible personal property, but temporarily loaning a rendering sol…
Are health club membership and initiation fees subject to New York State and City sales tax?
No. A fitness chain's membership and initiation fees are exempt from New York State and City sales tax because its members don't control the club's activities or management (so it isn't a taxable "ath…
Does sales tax apply to a mobile-MRI company's tractor-trailers and to its imaging-equipment leases to hospitals?
The heavy tractor-trailer combinations that haul a company's mobile MRI units are exempt from sales tax under Tax Law § 1115(a)(26), but the MRI equipment installed on the trailer is not covered by th…
Is a college-operated teaching hotel's room rent exempt from New York sales tax?
Yes. Room rent at a hotel operated by a tax-exempt college as part of its educational program is exempt from New York sales tax under Tax Law § 1116(c) as long as the hotel offers fewer than 100 rooms…
Does the exemption for promotional materials cover a grocery chain's blank membership/discount cards?
No. Blank plastic membership cards a grocery chain buys and then personalizes with a customer's name and magnetic ID strip don't qualify for the promotional-materials exemption, because they're used t…
Is sushi sold from a supermarket's in-store sushi bar subject to New York sales tax?
Yes. Sushi packs and platters sold from a sushi counter inside a grocery store are taxable, because they're prepared, ready-to-eat meals arranged for individual or multiple servings -- not the kind of…
Does New York sales tax apply to a recording studio's ISDN transmission of radio commercials, studio rental time, hook-up fees, or backup dubs?
Mostly untaxed, with two exceptions: transmitting finished radio commercials by ISDN to out-of-state destinations is a nontaxable interstate service (and its hook-up fee rides along untaxed), and bare…
Are purchases made by New York City teachers under the Teacher's Choice Program exempt from sales tax?
Yes. Purchases teachers make under the New York City Board of Education's Teacher's Choice Program are exempt from sales tax because they're made on behalf of a tax-exempt government entity, as long a…
Can New York City school custodians buy supplies for the Board of Education tax-free, and what paperwork do they need?
Yes, but with the right paperwork. School custodians buying supplies on behalf of the New York City Board of Education -- a tax-exempt government entity -- can make those purchases tax-free, but only …
Does a Canadian manufacturer owe New York sales or use tax on custom window-washing equipment sold to a contractor and permanently installed on a New York high-rise?
Yes. Selling custom window-washing and maintenance equipment to a general contractor who permanently installs it on a New York high-rise is a taxable retail sale (or a taxable use if bought out of sta…
Does New York sales tax apply to executive-education course materials, textbooks, and licensing fees charged alongside teaching services?
It depends on what's actually sold: teaching fees are never taxable, but a course textbook physically transferred to the customer is a taxable sale of tangible personal property, while a true license …
Is designing a bank's retail interior a taxable design service or an exempt advertising service?
Taxable. Designing the interior space of a commercial retail establishment like a bank branch is a taxable interior decorating and design service, even though the goal is to attract customers and prom…
Is the sale of a prepaid phone card subject to New York sales tax?
No, not at the point of sale. Selling a prepaid phone card isn't subject to New York sales tax; tax is instead imposed later, on the charge for each intrastate call the customer makes using the card.
Is an advance payment under a prepaid annual services plan taxable when received, or only when the customer actually uses a taxable service?
The advance payment itself isn't taxed when received. Under an Annual Discount Plan where a customer prepays for a bucket of services to be drawn down over the year, sales tax is triggered only when t…
Are an auto club's member Triptiks, maps, tourbooks, and membership kits exempt from sales tax as promotional materials?
Mostly yes, with limits. An auto club's personalized Triptiks, maps, tourbooks, membership kits, and applications qualify as exempt promotional materials when mailed or shipped free of charge to membe…
Which computer repair, software, and support charges are taxable in New York, and which are exempt if separately stated?
It depends on what's being worked on: repairing physical computer hardware is always taxable, but installing, servicing, or troubleshooting software is exempt if the charge is reasonable and separatel…
Are fees for an electronic B2B catalog platform, EDI document exchange, and inventory-replenishment forecasting subject to New York sales tax?
It varies by service: fees for an electronic wholesaler catalog platform and for inventory-replenishment forecasting aren't taxable, but fees for transmitting EDI business documents between trading pa…
Does a company running a manufacturer's sales-incentive rewards program need to register as a sales tax vendor, and is its own purchase of the reward items taxable?
The program administrator isn't required to register as a sales tax vendor because it's providing an exempt promotional service, not selling tangible property -- but as the retail purchaser of the rew…
Is the sale of orthopaedic braces to physicians, hospitals, and clinics subject to New York sales tax?
Yes -- selling orthopaedic braces to physicians, hospitals, clinics, and other health care providers is a taxable retail sale, because those buyers use the braces while performing medical or similar s…
When a company sells and installs custom in-ground swimming pools under a lump-sum contract, does it charge its customer sales tax on the installed pool, or does it instead pay tax itself on materials as a contractor?
The installed pool is treated as a capital improvement, not a retail sale -- the company's lump-sum charge to the customer for the pool and its installation isn't subject to sales tax, but the company…
If a building-cleaning company also runs payroll for a building owner's own maintenance engineers and mechanics, does the building owner owe sales tax on the payroll costs it funds through that company?
No -- the building owner doesn't owe sales tax on the payroll costs, because the maintenance engineers and mechanics remain employees of the building owner, not of the payroll-processing company; wage…
Browse New York rulings by topic
These are official tax letter rulings and advisory opinions issued by New York's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.