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.
Is renting sophisticated temporary event structures taxable, and can the company accept a resale certificate from an event planner?
Yes, the charges are a taxable rental of tangible personal property -- the customer gets possession because the host controls the event, can direct (within limits) where the structure goes, and bears …
Does a company have to collect NY sales tax on the electricity it sells at an electric vehicle charging station?
Yes. The per-kilowatt-hour charge -- and any fee -- a company charges customers for electricity delivered to their electric vehicles at a charging station is subject to NY sales tax under Tax Law 1105…
Must a general contractor pay sales tax on required security/guard monitoring services it buys as part of a capital improvement construction project?
Yes. A general contractor must pay sales tax on protective and detective services -- here, mandated security/building-engineer monitoring of high-risk overnight work -- that it purchases for a capital…
Are printed signs and displays a franchise advertising fund provides to its member restaurants exempt promotional materials under Tax Law 1115(n)(4)?
No. Although the signs and displays are 'promotional materials' as defined in the Tax Law, they do not qualify for the 1115(n)(4) exemption because they fail its conditions: (1) the materials go to th…
If a concessioner collects and remits sales tax on a food vendor's behalf at a stadium, is the food vendor still liable, and can it buy prepared food for resale?
Yes, the vendor remains liable. A person required to collect tax cannot assign that duty to another. By agreeing to let the concessioner collect and remit tax on its behalf, the petitioner and the con…
Can a commercial dog breeder buy dog food tax-free for its breeding dogs and puppies as a production or farming input?
No. Dog food a commercial breeder feeds its breeding dogs and their puppies (later sold at retail and wholesale) is subject to sales tax. The production exemption in Tax Law 1105-B covers only supplie…
Are monthly fees for litigation-support and e-discovery hosting of a client's own documents subject to NY sales tax?
No. A provider that collects, processes, organizes, and hosts a client's own documents on a web platform -- letting the client retrieve, view, tag, redact, highlight, and annotate them -- is providing…
Is a single-price, integrated portfolio and risk-management support service for investment managers subject to NY sales tax?
No, the integrated service itself is not taxable. Even though several components viewed alone would be taxable (intrastate telecom, the prewritten-software web interface, and risk-analysis/calculator …
Which solar-farm equipment, installation, and warranties are exempt from NY sales tax when the facility generates electricity for sale?
Equipment used directly and predominantly to generate electricity for sale is exempt under Tax Law 1115(a)(12)/1105-B, and the production process ends at the inverter. Exempt: solar panels, racks, com…
Does a scaffolding company charge sales tax on a lump-sum to install, rent, and dismantle temporary pedestrian walkways used with a capital improvement?
It depends on whether the walkway is a 'temporary facility' at a construction site that is a necessary prerequisite to constructing a capital improvement to real property. If it is, the lump-sum charg…
If someone finances another business's purchases with his credit card, is he a person required to collect NY sales tax on those purchases?
No. A person who merely finances another business's purchases -- by letting it use his credit card, with the business signing a promissory note to repay him with interest -- is acting as a lender, not…
Are membership dues for a business-networking / referral association subject to NY sales tax as social or athletic club dues?
No. NY taxes dues only for a social or athletic club (Tax Law 1105(f)(2)). This association is a 'club' (its members control admission and activities), but it is not an athletic club (it has no sports…
When does a professional trapeze artist have to collect NY sales tax -- on performance fees, instruction, or admissions?
Only when she performs directly for the public and charges an admission. Being hired for a fee -- to instruct aerial skills, to perform at events booked by event planners or private hosts, or as a sub…
Is an employee wellness program -- web portal, health education, biometric assessments, and advice -- subject to NY sales tax?
No. A company that sells employers a wellness program for their employees -- combining an online portal with health/nutrition/exercise education and tracking, annual biometric health assessments, and …
Is an irrevocable equipment lease ending in a $1 buyout a true lease or an outright sale for NY sales tax?
It is an outright sale. Under either of the lessor's termination provisions -- the lessee may buy the equipment for $1 or return it, OR the lessee must buy it for $1 -- the standard lease is a securit…
Are a contractor's charges to update a kitchen (new cabinet doors, countertop, sink, molding) a tax-exempt capital improvement?
Yes, when sold as a complete package. A kitchen-update package -- new cabinet doors and drawer fronts, new hardware, new countertop, new sink and faucet, new molding, and painting the cabinet surfaces…
After a lessee defaults, is money an equipment lessor recovers by judgment or from a guarantor subject to NY sales tax?
It depends on the type of lease. For a TRUE lease, where the lessor collected tax on each monthly payment, any amount it later recovers on the default -- a court judgment against the lessee, or a paym…
Is the payroll a managing agent passes through for cleaning and maintenance workers subject to NY sales tax?
No. Building cleaning and maintenance services are generally taxable, but wages and other compensation an employer pays its own employees for those services are excluded from sales tax under Tax Law 1…
Is an online driver-safety / point-reduction course subject to NY sales tax as prewritten software?
No. A DMV-regulated online accident-prevention course (an Internet Point and Insurance Reduction Program, or IPIRP) is a nontaxable educational service, not a sale of taxable software. Although the co…
New York Advisory Opinion TSB-A-12(7)C / 12(32)S: Does a parent corporation keep the Empire Zone benefits of a certified subsidiary it absorbs in an IRC section 332 liquidation?
Yes, with a step. When a certified subsidiary is liquidated into its parent under IRC section 332 and the parent keeps running the same facility and employees in the zone, the parent stays eligible fo…
Are a commercial printer's purchases of mailing and reply envelopes subject to sales tax, or are they purchases for resale?
They are purchases for resale, not taxable. A commercial printer that prints individualized statements and stuffs them (with reply envelopes when requested) into outer mailing envelopes is making a re…
Does an operator of an Internet data center qualify for the NY sales-tax exemption on its equipment and related services?
Yes. A business that operates an Internet data center -- a facility specifically designed and built to provide a high-security environment for servers hosting websites, and that provides uninterrupted…
Is an edible gummy drinking cup exempt as food, or taxable as candy/confectionery?
It is taxable. Although NY exempts food and food products, candy and confectionery are not exempt (Tax Law 1115(a)(1)(i)). This edible gummy drinking cup is made of evaporated cane sugar and pectin an…
What NY/NYC parking taxes apply to a co-op's parking charges for members and for resident non-members?
A co-op (homeowner's association) member owes NO state or city parking tax on charges paid to the association or to the operator leasing the association's parking facility -- the homeowner's associati…
Are formal patent drawings taxable when delivered to attorney clients only in electronic form?
No. Sales tax applies to tangible personal property, which includes artistic items like sketches and drawings when delivered in a tangible (paper) form. But when the drawings are delivered solely elec…
Are downloadable craft patterns and project collections (eProjects) subject to NY sales tax?
No. Downloadable craft patterns (step-by-step instructions to make something) and eProjects (collections of multiple electronic patterns) are non-tangible digital files. They are not tangible personal…
Is a hotel buying (and reselling) AV services from its in-house AV provider, and is it liable for the AV sales tax it collects via master billing?
No, the hotel is not purchasing the AV services. Where the AV provider signs a separate contract directly with the hotel's guest for AV equipment and services -- the provider owns the equipment, only …
Is a service that gathers, stores, and reports a customer's own data a taxable information service in NY?
No. Gathering and mapping a customer's data, storing it in a confidential per-customer online data warehouse, and using it to create customizable reports is an information service -- but one that is p…
Are design images taxable when delivered to customers only electronically as PDF files?
No. Tangible personal property -- which includes artistic items like sketches and drawings -- is taxable when delivered in tangible (paper) form. But where the design images are delivered solely elect…
Are an expert network's oral consultations, consultant directory/software, and custom research reports subject to NY sales tax?
Generally no. Oral consultations with the firm's expert consultants are not taxable -- they are guidance, advice, and perspective from the experts' own knowledge (not drawn from any common database), …
Are an equipment-rental firm's charges to deliver rented equipment, or to tow/transport customer-owned equipment, subject to NY sales tax, and at what rate?
It depends on what is being moved. A charge to deliver equipment the firm rents to the customer is taxable -- it is part of the rental receipt whether or not the delivery charge is separately stated. …
Is selling advertising space on installed displays a taxable service in NY, and are the charges to install, repair, and supply those displays taxable?
The advertising sales are not taxable, but the related installation, repair, and materials charges are. Selling advertising space on digital, backlit, scroll, wrap, and banner displays is not one of t…
Are the fees for a vehicle fleet Maintenance Management Program -- arranging discounts, overseeing repairs, and billing -- subject to NY sales tax?
Generally no. The firm doesn't own or run a repair shop; it negotiates discounts, has its technicians review whether repairs are necessary and fairly priced, acts as liaison with service providers, an…
Is the service of installing and dismantling scaffolding, safety netting, hoisting equipment, and temporary pedestrian walkways subject to NY sales tax?
It depends on whether the item is a 'temporary facility' and whether the underlying job is a capital improvement. Installing scaffolding, safety netting, hoisting equipment, and temporary pedestrian w…
Are portable-toilet rentals with waste removal exempt from NY sales tax when the customer is performing a capital improvement?
No. Providing portable toilets together with waste removal is a taxable service of maintaining/servicing real property under Tax Law 1105(c)(5), and the capital-improvement exclusion does not reach it…
Are Orthovisc, Euflexxa, and Hyalgan injections for knee osteoarthritis exempt from NY sales tax?
Yes. Orthovisc, Euflexxa, and Hyalgan are all hyaluronan-based treatments a physician injects into an osteoarthritic knee to supplement the joint's natural fluid, improving the knee's operation and ma…
Are EMS units, orthopedic pillows/cushions, massage devices, mattresses, whirlpool baths, and infrared lamps exempt as medical equipment if sold by prescription?
No. The medical-equipment exemption under Tax Law 1115(a)(3) applies only to equipment that is primarily and customarily used for medical purposes and is not generally useful in the absence of illness…
Are over-the-counter acne products exempt from NY sales tax, and what makes a product an exempt 'acne preparation'?
Yes -- acne preparations that contain a recognized active acne drug are exempt. Tax Law 1115(a)(3) exempts drugs and medicines used to treat illness in humans. An 'acne preparation' qualifies if it co…
Is a kegel pelvic-floor exercise device exempt from NY sales tax as medical equipment?
No. The medical-equipment exemption under Tax Law 1115(a)(3) applies only to equipment that is primarily and customarily used for medical purposes and is not generally useful in the absence of illness…
Are charges for renting inflatable amusement devices and equipment -- with the company's safety staff on site -- subject to NY sales tax?
Yes. Providing inflatable devices (bungee runs, slides, obstacle courses, etc.) and other amusement equipment (jousting, boxing, sumo gear, Segways) for parties is a taxable lease of tangible personal…
Which clinical-trial patient-recruitment services -- ads, call centers, tracking, site kits, translation -- are subject to NY sales tax?
Most are not taxable, but the printed materials are. Producing TV/radio ads and websites, running e-mail and direct-mail advertising campaigns, operating screening call centers, and ad-response tracki…
Are movies a theater receives from studios taxable in NY when delivered by satellite versus on a hard drive?
It depends on the delivery medium. Movies a theater receives by satellite transmission or otherwise delivered electronically are not subject to sales tax -- they're treated as sales of intangible prop…
Is a sweetened chocolate product taxable candy in NY, and does selling through in-state independent reps require registering as a vendor?
The chocolate is taxable, and the reps may trigger registration. A sweetened chocolate product sold in wrapped pieces is candy or confectionery, which is excluded from the food exemption and taxable -…
Must a New York gun dealer (FFL) collect sales tax when transferring a firearm the buyer purchased from an out-of-state seller, and is its transfer fee taxable?
No on both. When a New York buyer purchases a gun directly from an out-of-state seller (FFL) and pays that seller, federal law requires the gun to ship to a New York FFL who runs the background check …
New York Advisory Opinion TSB-A-12(4)C / 12(7)S: Does a not-for-profit electricity Independent System Operator become subject to corporate franchise tax or lose its sales-tax exempt status by adopting a central counterparty structure under FERC orders?
No. A not-for-profit Independent System Operator that adopts a central counterparty structure -- becoming a party to all transactions in the electricity markets it administers under FERC orders -- doe…
New York Advisory Opinion TSB-A-12(3)C: Will the Department respect an Empire Zone certificate transferred to a corporation after a stock purchase and name change, and when does its sales-tax benefit period end?
Yes. The Department will respect an Empire Zone certificate of eligibility that the Department of Economic Development transfers to the surviving corporation after a stock purchase and name change (th…
How does NY sales and use tax apply to a stair and railing manufacturer that also installs its products?
As a fabricator that installs its own product, the company is a contractor. Installing or entirely replacing stairs is generally a nontaxable capital improvement, so its charges to sell-and-install st…
Are cardiac ventricular-assist devices, their components, supplies, service, and training exempt from NY sales tax?
Yes, essentially all of it is exempt. The heart devices assist permanently malfunctioning heart ventricles, so they qualify as prosthetic aids and are exempt under Tax Law 1115(a)(4); their external c…
Are an independent real-estate consultant's services -- analysis, recommendations, and oversight for clients -- subject to NY sales tax?
No. Consulting services aren't among the enumerated services taxed under New York's sales tax. The consultant locates and analyzes properties, builds custom cash-flow projections, makes purchase recom…
Is a subscription to a hosted product-data-synchronization data pool taxable as prewritten software in NY?
Yes. The product is a certified data pool (CDP) that lets supply-chain trading partners upload, synchronize, request, and view standardized product data through the operator's hosted software, which r…
Is Synvisc (hylan G-F 20), a knee-osteoarthritis injection, exempt from NY sales tax?
Yes. Synvisc (hylan G-F 20) is a hyaluronan-based fluid a physician injects into an osteoarthritic knee, where it supplements the joint's natural synovial fluid, relieves pain, and restores the knee's…
New York Advisory Opinion TSB-A-12(1)C / 12(2)S: Is a cash payment-processing service subject to sales tax, and does using it make merchants vendors or give them New York franchise-tax nexus?
No on both. A cash payment-processing service that lets customers pay online purchases or bills with cash at a local store is not an enumerated taxable service, so it is not subject to sales and use t…
Are paid 'membership' dues at an owner-operated public golf course taxable as social or athletic club dues in NY?
No. Tax Law 1105(f)(2) taxes dues paid to a 'social or athletic club,' but this golf course isn't one. The owner retains sole control over the facility and all its operations; the 'members' have no ow…
Are a laser-surgery treatment-card fee and a per-procedure patent-license fee subject to NY sales tax?
Yes, both are taxable. The $10 plastic treatment card that must be inserted to operate the laser is itself tangible personal property with real utility (it activates the equipment), not a mere token o…
Are facial moisturizers and cosmetic makeup that contain an SPF of 2 or greater exempt from NY sales tax?
No. These products -- facial moisturizers and liquid/powder makeup that happen to contain a sun-protection ingredient (SPF 2+) -- are cosmetics, and cosmetics are taxable under Tax Law 1115(a)(3) even…
Is a fixed-price guided Segway tour a taxable rental of tangible property or an exempt tour service in NY?
It's a taxable rental. Tour services aren't an enumerated taxable service, but here the primary thing the customer buys is the right to use the Segway. The customer has physical possession of the Segw…
Is a lump-sum charge to operate and manage water and wastewater treatment facilities subject to NY sales tax?
No. The company contracts to fully operate, manage, and maintain water and wastewater treatment plants -- staffing them with state-certified, licensed operators and running the facilities in complianc…
Are a commercial landlord's charges to a tenant for 'condenser water' used to cool the tenant's leased space subject to NY sales tax?
No. The condenser water is chilled water the landlord pipes to the tenant's own air-conditioning system to cool the space the tenant leases. Because the water is delivered through pipes, the sale of t…
When a hotel's in-house AV provider contracts directly with guests, is the hotel purchasing those AV services -- and is it liable for the sales tax?
No to purchasing, but yes to liability when the hotel collects the money. Each hotel lets an in-house AV provider rent audiovisual equipment and related services directly to the hotel's guests, who si…
How does NY sales tax apply to a security company's monitoring services, alarm/CCTV equipment, installation, repairs, and its own purchases?
It depends on the service. Monitoring (and other alarm/protective) services are always taxable as 'protective and detective services' under Tax Law 1105(c)(8). For equipment and its installation: if t…
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.