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.
Can New York waive the refund statute of limitations for claims filed more than three years after the returns, based on a tax-treaty competent-authority determination?
No waiver is needed. Although the general limit is three years (Tax Law § 687(a)), a refund claim that is attributable to a federal change or correction gets an extended deadline under Tax Law § 687(c…
Are a nonresident retired partner's payments from a CPA firm's partnership agreement exempt from New York income tax as retirement income or an annuity?
No. The payments are taxable as New York source income. They are not protected 'retirement income' under the federal Pension Source Law (4 USC § 114) because they are not 'substantially equal periodic…
Are IRA distributions exempt from New York income tax when the IRA was funded only by rolling over a retired federal employee's Thrift Savings Plan?
Yes, but only for the portion that represents the rolled-over Thrift Savings Plan (TSP) amount. That portion qualifies for the federal-employee pension subtraction under Tax Law § 612(c)(3)(ii). Gains…
When a retired NYC police officer rolls exempt SOCA Fund and VSF DROP money into an IRA, do later IRA withdrawals still qualify for New York's public-pension subtraction?
Yes, but only to the extent the withdrawal represents the rolled-over SOCA Fund and VSF DROP amounts. Those qualify for the public-employee pension subtraction under Tax Law § 612(c)(3)(i). Any other …
Are a retired federal employee's Thrift Savings Plan (TSP) distributions taxable in New York, and does the exemption survive a rollover into an IRA?
TSP distributions are not subject to New York income tax; they get the federal-employee pension subtraction under Tax Law § 612(c)(3)(ii). When TSP money is rolled into an IRA, only the portion that r…
If a New York public employee leaves before vesting and gets a refund of his retirement-plan contributions plus earnings, is that refund subject to New York State income tax?
No. The refund is tax-exempt retirement income. Because the petitioner was a public employee (CUNY) who left before vesting, the returned contributions and the earnings on them qualify for the public-…
Can a partnership's New York resident partners subtract their share of payroll expenses that were added back federally under IRC 280C because the firm claimed the research credit?
Yes. When a partnership claims the IRC § 41 research credit, IRC § 280C(c)(1) requires it to reduce (add back) the related wage deductions, which raises federal income. New York gives resident partner…
Does New York's $5 million Rehabilitation of Historic Properties Credit cap apply per structure or per application when several related historic buildings are filed on one application?
Per structure. The $5 million cap on the Rehabilitation of Historic Properties Credit applies on a per-certified-historic-structure basis, not per application. Because Tax Law § 606(oo)(1)(A) sets the…
Is fabricating and installing a permanent non-canvas awning a taxable installation or a non-taxable capital improvement?
It's a capital improvement, so the installer shouldn't charge customers sales tax on the job. The business builds awnings from metal framework and PVC/vinyl material (no canvas), securely attached so …
Is a contract packager's charge to fill, weigh and seal a food manufacturer's product subject to New York sales tax?
No. A food manufacturer outsources packaging to an unaffiliated company, supplying both the food and the bags and paying per bag to have the product filled, weighed, and sealed, then reselling it. Fil…
We accidentally filed a discharge of our mortgage by clerical error. If we now record a new agreement to restore the same debt and terms, does that count as an exempt "supplemental mortgage," or do we owe mortgage recording tax again?
Mortgage recording tax must be paid again. Tax Law § 255 exempts a "supplemental mortgage" recorded to correct or perfect a prior mortgage on which all tax was already paid, from further recording tax…
Is a coaching service that administers a DISC behavioral self-assessment and gives each employee a report subject to sales tax?
No. The coach teaches effective listening and communication and, as part of the service, has each employee take a DISC self-assessment and receive a report analyzing their behavioral style. Coaching/f…
Is fabric sold for more than $110 exempt under New York's clothing exemption if the buyer will make several garments from it?
No. New York exempts clothing and footwear costing less than $110 per article, and 'clothing' includes fabric, thread, buttons, zippers and similar items that become part of clothing. But the $110 tes…
Are services to create, host, maintain and optimize a client's mobile website subject to New York sales tax?
No. The company designs, builds, hosts, maintains, and optimizes mobile websites for retailers, all for a fixed monthly fee. Website development — design, creation, and the operation of a site the dev…
Are an environmental firm's testing, remediation-design, monitoring, construction-oversight, and consulting charges subject to New York sales tax?
It varies by service. Testing and monitoring of real property — even if no remediation follows — are taxable services of maintaining/servicing/repairing real property (§ 1105(c)(5)), UNLESS they are e…
Is a spinal-cord-stimulator pain system exempt as a prosthetic device or medical equipment when sold to physicians, hospitals, and pain clinics?
No — those sales are taxable. The implant blocks pain by delivering electrical pulses to the spinal cord; it doesn't replace a missing or permanently inoperative body part, so it isn't an exempt prost…
Is a service/maintenance contract bought to cover exempt production equipment subject to New York sales tax?
No. A plastics manufacturer bought a factory protection plan covering only its on-site generator, which produces the electricity that directly and predominantly powers its production equipment. Mainta…
When a photographer transfers photos to a client to reproduce, is the charge taxable — and do expenses and digital vs. physical delivery matter?
It depends on whether it's a sale or a temporary transfer for reproduction, and on the medium. Selling a photograph on a physical medium (print, slide, negative, CD) delivered in New York is a taxable…
My New York retail business sells only vaping products (e-cigarettes, vape pens, and e-liquid) -- no cigarettes or tobacco. Do I need a cigarette/tobacco dealer registration, and do I owe any special New York excise tax on vaping products?
No tobacco dealer registration is needed, but a vapor products dealer registration is required. A retailer that sells only vaping products (no cigarettes or tobacco) is not required to obtain a certif…
Is a hosted call-handling/voice-recognition product a taxable sale of prewritten software, and where is the sale taxed?
Yes — it's a taxable sale of prewritten computer software. The company's proprietary software, hosted on its own out-of-state servers, determines callers' intent and routes calls for its customers; li…
Is a firm's automotive marketing product a taxable sale of prewritten computer software, or a non-taxable advertising service?
It's a non-taxable advertising service. The firm uses its own staff and proprietary software to gather dealership sales data, build marketing models, and design and launch targeted ad campaigns (email…
Are digital document services — scanning, data capture, validation and cloud storage of a customer's documents — subject to New York sales tax?
No. The provider scans and converts a customer's documents (Product A), captures and validates data from them (Products B and C), and hosts them in the cloud (Product D). Converting documents to PDF w…
Does a company that processes automobile insurance claims as the insurer's agent have to collect sales tax on the payments and on its administration fee?
No. The company administers auto damage claims as the agent of insurance companies — confirming coverage, processing the repair-shop invoices, and forwarding the insurer's payment to the repair garage…
Can a commercial landlord that resells submetered electricity to tenants claim a credit for the sales tax it paid on that electricity?
Yes. The landlord buys electricity (paying sales tax), uses some in common areas, and resells the rest to tenants based on submetered usage, with a lease markup. Because it's reselling electricity, th…
When a company licenses short-term use of event facilities, which add-on charges — docking, electricity, parking, cleaning, waste, security, staff — are taxable?
The core charge for using the space is not taxable. The company licenses facilities for short-term use under revocable license agreements, so its 'fixed term occupancy charge' is rent for real propert…
At a sports and amusement facility, which charges are taxable — participatory sports, trampolines and bounce houses, and birthday parties?
It depends on the activity. Charges to participate in actual sporting activities — here volleyball and junior soccer — are not taxable, because Tax Law § 1105(f)(1) exempts charges to a patron for usi…
Can a diesel fuel distributor sell kero-jet fuel to a licensed kero-jet-only distributor (not an airline) exempt from New York prepaid sales tax?
No. The aviation-fuel exemptions apply only to retail sales of fuel to an airline for use in its airplanes. Because this distributor sells kero-jet fuel to a licensed Distributor of Kero-Jet Fuel Only…
Are a sightseeing cycleboat operator's tour ticket receipts taxable, and does it owe sales tax on the boats, fuel, and maintenance?
The tours aren't taxable, but the equipment is. Receipts from sightseeing cycleboat tour tickets aren't subject to sales tax, because tour services aren't among New York's enumerated taxable services.…
Is a service of hanging a client's own artwork on the wall subject to New York sales tax?
Yes. Installing tangible personal property is a taxable service under Tax Law § 1105(c)(3), whether or not any property is transferred with it. Hanging a client's artwork — pictures, mirrors, tapestri…
Is a separately itemized crating charge on an invoice for taxable goods subject to New York sales tax?
Yes. A vendor's receipt includes its charges for shipping, delivery, and handling, and crating is a handling charge tied to delivery. When the underlying goods are taxable and delivered in New York, t…
Are a health and fitness club's membership fees subject to New York City local sales tax?
Yes. New York City taxes charges by weight control salons, health salons, gymnasiums, and similar establishments, and a club offering cardio and strength machines, weights, and training and workout ar…
When does the brownfield site-preparation credit window close after a Certificate of Completion, and do later 'Phase II' development costs qualify as site preparation costs?
The site-preparation credit may be claimed for up to five tax years after the year the Certificate of Completion (CoC) issues, so a December 2013 CoC means the last year is 2018. Phase II excavation, …
Are sales of hydrogen fuel at New York refueling stations for fuel-cell electric vehicles subject to sales and use tax?
No. Although the sale of hydrogen gas is generally taxable, Tax Law § 1115(a)(42) exempts hydrogen used directly and exclusively in the engine of a motor vehicle. That exemption applies to the prepaid…
Can a dairy cow hoof trimmer who does custom work for dairy farms buy his truck, tools, and supplies tax-free under New York's farming exemption?
Mostly yes. Because the hoof trimmer does custom work that is part of dairy farm production, his trimming truck, tilt table, chute and gates, the tools and supplies to maintain and sanitize them, cow-…
Does an events venue have to charge sales tax on its site fee, and on the amounts it exchanges with its exclusive caterer?
It depends on whether catering is involved. When the venue is rented together with catering, the nonrefundable site fee is a taxable 'other charge' made in connection with the sale of food and drink. …
Are a convenience store's single-serve yogurt cups taxable when the store also offers a few tables and seats for customers?
Generally no. The yogurt cups are exempt food when sold for off-premises consumption, because they're sold unheated and in the same form, quantity, and packaging as in a grocery store. The mere presen…
Is the fee a New York firm pays for remote 'managed IT services' on servers located outside New York subject to sales tax?
No. Most parts of the managed IT service — hardware/software help-desk support and data backup — aren't taxable services to begin with. The only potentially taxable component is the IT-security work, …
Are a company's two online government-RFP services — one that distributes RFPs and one that notifies contractors of bid opportunities — subject to New York sales tax?
One is, one isn't. The Procurement Service, which lets government agencies build and distribute their requests for proposals to a wide pool of contractors, is not an enumerated taxable service, so it …
Are a recycler's charges to collect and process used oil and oily waste taxable as a trash removal service in New York?
Generally no. Because the recycler tests, accepts, and recycles only oily waste that has economic value (it recovers and sells the oil) and its fees can depend on the oil's market price, the waste isn…
How does New York sales tax apply to a contractor's purchase, sale, and installation of residential and commercial solar energy systems?
It varies by component and timing. Solar modules, racking, and inverters bought for installation at a specific customer's residence or commercial premises qualify as solar energy systems equipment, ex…
Are charges for a cloud webcasting and virtual-communications platform — plus its optional add-on services — subject to New York sales tax?
Mostly no. The core charge for the cloud webcasting/webhosting platform is not taxable: hosting events isn't an enumerated service, and the software-driven features (registration pages, webinar tools,…
Are payments from a former employer's nonqualified deferred compensation plans, received after the taxpayer retired and left New York, subject to New York income tax?
No. The distributions qualify as 'retirement income' under the federal Pension Source Law (4 USC § 114), which bars states from taxing the retirement income of a nonresident. They are also not New Yor…
How do you calculate the portion of IRA withdrawals that is exempt from New York income tax when the IRA was funded solely with federal Thrift Savings Plan rollover funds?
Only the portion representing the rolled-over TSP amount is exempt under Tax Law § 612(c)(3)(ii); post-rollover gains are not and may instead use the $20,000 subtraction under § 612(c)(3-a). One accep…
Does a vibration-monitoring company owe sales tax on the seismograph equipment it buys to provide monitoring services?
Yes. The seismograph is tangible personal property, and the company buys it to use in providing its vibration-monitoring service — it doesn't resell the equipment to customers, and no equipment exempt…
Does a county terminal-pay 401(a) plan funded only by converting an employee's accrued leave qualify for New York's full public-pension subtraction?
No. Distributions from the plan (and from IRAs funded by rolling it over) do not qualify for the full public-employee pension subtraction under Tax Law § 612(c)(3)(i), because converting an employee's…
When someone assumes another person's existing long-term car lease in New York, is sales tax due again, and on what amount?
Yes, tax is due again. Assuming an existing long-term motor vehicle lease is a new, separate taxable sale. Sales tax is due up front on the total remaining monthly payments, plus any down payment and …
Which personal-care products — lotions, medicated powders, an acne kit, glucose tablets — are exempt from New York sales tax as drugs or medicines versus taxable as cosmetics?
It depends on each product. New York exempts drugs and medicines (and dietary foods) but taxes cosmetics and toilet articles even if they contain medicinal ingredients. Here, moisturizing and anti-itc…
Does a car rental company owe sales tax on the repair and maintenance services it buys for the vehicles in its rental fleet?
No. Because the vehicles are held exclusively for rental — and a rental is itself a 'sale' under New York law — the fleet is property held for sale in the regular course of business. Repairs, maintena…
Is a restaurant's monthly fee to license a vendor's tabletop ordering tablets taxable, and are the charges patrons pay for premium content on those tablets taxable?
Yes to both. The monthly fee the restaurant pays for a license to possess and use the vendor's tabletop point-of-sale tablets is a taxable rental/license of tangible personal property, taxed at the ra…
When a data-destruction company takes customers' old computers as trade-ins or on consignment, does the trade-in credit or resale exclusion reduce the sales tax on its service?
Only sometimes. Data destruction is a taxable service. If the company takes a customer's equipment in part payment and intends to resell it exactly as received, the trade-in credit reduces the taxable…
If a home straddles the Bronx/Yonkers line but the house itself sits entirely in Yonkers, are the owners Yonkers or New York City residents for income tax?
Yonkers residents. Residency turns on where you are domiciled and maintain a permanent place of abode. Although the property straddles the border and has a Bronx mailing address, the actual dwelling s…
Is an urgent-response medical-alert monitoring service taxable, and does it trigger sales tax or telecommunications taxes?
The monitoring service is exempt, but the device is taxable. The wearable device connects a user to the provider's out-of-state call center (or 911) when a button is pressed or a fall is detected. The…
Must a 501(c)(3) charity collect sales tax at a two-day annual fundraiser on its own goods and on goods it sells for absent vendors?
It depends on whose goods are sold. The charity's sales of its own items at a two-day annual fundraiser are exempt, because a once-a-year event isn't a 'shop or store' operated with regularity, freque…
Is an IRA funded by rolling over a federal employee's Thrift Savings Plan exempt from New York income tax, and what about other private retirement accounts?
The IRA distributions are exempt only to the extent they represent the rolled-over Thrift Savings Plan (TSP) amount, which qualifies for the federal-employee pension subtraction under Tax Law § 612(c)…
Are an employer's nonqualified deferred-compensation payments to nonresidents protected from New York tax, including payments made before employment ends?
Only the post-termination payments are protected. Payments from an excess-benefit nonqualified deferred-compensation plan made to a nonresident after termination of employment are 'retirement income' …
Is nonqualified deferred compensation paid to a nonresident in substantially equal annual payments over 10 years subject to New York income tax withholding?
No. Two series of substantially equal annual payments made over a 10-year period under a nonqualified deferred compensation plan qualify as 'retirement income' protected by the federal Pension Source …
Are a retired federal employee's TSP distributions (lump sum or periodic) and an IRA funded by a TSP rollover exempt from New York income tax?
TSP distributions, whether taken as a lump sum or as periodic payments, may be subtracted from federal income under the federal-employee pension subtraction (Tax Law § 612(c)(3)(ii)). When TSP money i…
Is a service that lets each customer log in and run reports on its own vehicle-maintenance data a taxable information service in New York?
No. The service is a non-taxable information service. Although furnishing information is generally taxable, New York excludes information that is personal or individual in nature and not substantially…
Are an out-of-state production company's video, sound, and lighting services taxable in New York, and does it owe use tax on equipment it brings in?
The services are not taxable, but use tax may be. When the company uses its own video, sound, and lighting equipment to produce events and never hands control to the customer, it is selling a non-taxa…
What New York sales tax does a for-profit nursing home owe on the items it buys for residents — and does Medicaid or Medicare coverage change the answer?
It varies by item, and the resident's Medicaid/Medicare status makes no difference. A for-profit nursing home owes sales tax on medical equipment and supplies, toilet articles, bedding, and similar co…
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.