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.
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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…
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…
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,…
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…
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…
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 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…
Can a dentist buy a CEREC milling machine tax-free under New York's production-machinery exemption because it fabricates crowns and other dental devices?
No. The milling machine is taxable. New York's exemption for machinery used directly and predominantly to produce tangible personal property for sale does not apply, because the dentist is not in the …
Does New York sales tax apply to a teleprompter company's operated teleprompting service versus renting the equipment alone?
It depends on who controls the equipment. When the company supplies a teleprompter system plus its own technician who keeps control, it is selling a non-taxable service, so no sales tax applies. But w…
Are fees for online courses, completion certificates, specializations, and degrees subject to New York sales tax?
No. The free streaming access and downloadable software carry no charge, so there is nothing to tax there. The paid 'course certificate' videos, specializations, and university-recognized degrees are …
Must a public golf course charge sales tax on golf carts that golfers use at no extra charge?
No. Because the green fee is the same with or without a cart and no separate charge is made for the cart, there is no consideration for the cart, so its use is not a taxable sale or rental of tangible…
Can a security guard company accept Direct Payment Permits from customers when it already knows its services are taxable?
No. A Direct Payment Permit applies only when, at the time of purchase, it is impossible to determine how the property or service will be used and whether it is taxable. A security guard company knows…
Is a service that lets customers send large volumes of email, plus related consulting, subject to New York sales tax?
No. The primary function of the service is letting customers send large quantities of email over the provider's servers, which is a non-taxable email service protected by the federal Internet Tax Free…
Are fees to store dogs in climate-controlled lockers, plus the membership and unit rentals, subject to New York sales tax?
Yes, all three. Dogs are tangible personal property, so the per-minute charge to store a dog in a locker is taxable storage under Tax Law 1105(c)(4). The annual membership fee is taxable too, as a pre…
Are a firm's digital marketing services and the third-party software licenses it resells subject to New York sales tax?
It depends. Helping clients track and improve their own marketing is a non-taxable advertising service. But when the firm resells a third-party software license to the client, that is a taxable sale o…
Are monthly clothing-rental subscription fees exempt under New York's clothing exemption?
Yes. Renting clothing is a sale, but clothing sold or rented for less than $110 per item is exempt from State sales tax. Even subscription plans costing more than $110 a month qualify, because the per…
For the lower-Manhattan commercial-lease sales tax exemption, when does the tenant's one-year exemption period begin?
It begins on the first day the tenant has the right to occupy the leased premises, which in this case is the lease's Commencement Date, not the earlier date the lease was signed. Tax Law 1115(ee) give…
Are collagen wound dressings and membranes used in dental surgery exempt from New York sales tax?
Yes, but under a different exemption than the seller claimed. They are not exempt 'prosthetic aids,' because they don't replace a missing or permanently malfunctioning body part. But where they are le…
Is a hosted digital advertising campaign platform that lets customers build and manage their own ads subject to New York sales tax?
Yes. Giving customers the right to access and use the platform's prewritten software tools to create, deliver, and manage their own advertising is a taxable sale of prewritten software, taxable to the…
Are retail sales of mitten clips, used to attach gloves or clothing, exempt under New York's clothing exemption?
No. Mitten clips are taxable tangible personal property. They are not themselves clothing, and unlike zippers or snaps they do not become a physical component part of a garment; they are accessories t…
Are 'healthy' snack mixes of nuts, seeds, and dried fruit taxable as candy when they contain chocolate or honey coatings?
Mostly yes. Food is generally exempt, but candy and confectionery are taxable. When otherwise-exempt foods like nuts, seeds, or dried fruit are mixed with chocolate pieces, fudge, or honey/sugar coati…
Are sales of kombucha, a fermented tea beverage, subject to New York sales tax?
No. Although carbonated soft drinks are taxable, tea is specifically exempt from sales tax under Tax Law 1115(a)(1). Kombucha is a flavored, naturally fermented tea, so it qualifies as exempt tea and …
Are subscription fees to access an online library of instructional video courses subject to New York sales tax?
No. Subscriptions that let users stream video courses to learn new skills are not tangible personal property and are not a taxable information service, because their purpose is to impart knowledge. Do…
Are a coupon clearinghouse's products, sold to retailers and advertisers, subject to New York sales tax?
No. The primary function of the clearinghouse's products is processing redeemed coupons and handling payments between retailers and advertisers, which is not a taxable service. The prewritten software…
Can a contractor buy glue tax-free when it is used to bond ceramic tile to the floor of a building owned by the Port Authority?
Yes. When a contractor improves real property owned by a tax-exempt governmental entity, materials that become an integral component part of that property are exempt from sales and use tax. The glue i…
Are private cooking, baking, and cake-decorating lessons taught in a customer's home subject to New York sales tax?
No. Teaching cooking and baking is not one of the services New York taxes under Tax Law 1105(c). Even when the instructor supplies some ingredients or hands over recipes on paper, those items are inci…
Is orgeat almond syrup, a sweet mixer used in soft and alcoholic drinks, subject to New York sales tax?
Yes. Although most food and beverages are exempt, the exemption does not cover soft drinks and beverages ordinarily dispensed at soda fountains, or fruit drinks with less than 70% natural fruit juice.…
Are the site safety manager, fire safety manager, and emergency watchman services a company provides on construction sites subject to New York sales tax?
Yes. These site safety officials regularly patrol and inspect construction sites to protect against fire, property damage, and injury to persons, so New York treats their services as taxable protectiv…
Is the service fee a federally licensed firearms dealer charges to transfer a firearm to a New York resident subject to sales tax?
No. The FFL's transfer services, receiving the firearm, recording it, running the NICS background check, and completing the required forms, are not among the services New York taxes under Tax Law § 11…
Are charges for the annual government-mandated inspection of backflow prevention devices subject to New York sales tax?
Not by themselves. A government-mandated inspection performed solely for code compliance, and not in conjunction with installing or repairing the device, is not taxable. But an inspection done at the …
When a cigarette manufacturer funds a 'buy-down' price reduction, does the retailer calculate sales tax on the reduced price or the full price?
On the full price. A manufacturer-funded buy-down is a reimbursement the retailer receives after the sale, so the taxable receipt includes both the reduced price the customer pays and the buy-down amo…
When does a bridal shop owe sales tax on a wedding dress, at the deposit or when the dress is finished?
When title to the dress transfers, which is when the customer has fully paid. If a customer pays a 50% deposit and the balance later, the sale occurs (and tax is collected) at full payment. If a custo…
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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.