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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Are the FCC-mandated 'shared costs' a number-portability administrator allocates to telephone carriers subject to NY sales tax?
No. The petitioner runs the regional databases that let phone customers keep their number when they switch carriers, and federal rules make the carriers share the cost of that system. Although it conv…
Are niche walls, wall fittings, and paneling installed during a retail store's initial build-out taxable fixtures or nontaxable capital improvements?
They're capital improvements, so they aren't taxable as tangible personal property. The floor-to-ceiling display niche walls, wall fittings, and paneling were installed during the store's initial buil…
When a NY vendor ships taxable goods by common carrier, is sales tax based on the rate where the vendor is located or where the buyer takes delivery?
The rate is the combined state and local rate in effect where the buyer takes delivery. New York sales tax is a 'destination tax': under Tax Law 1213 the vendor collects the city, county, and school-d…
Are receipts from a patent draftsman's formal drawings, delivered solely electronically as PDFs, subject to NY sales tax?
No. The draftsman creates formal patent drawings and delivers them solely electronically, as PDF files emailed to patent-attorney customers, with no paper copy. Sales tax applies to sales of tangible …
Are a security firm's guard services, provided to a contractor working on a NYC government construction project, subject to NY sales tax?
Yes. Guard, patrol, and watchman services are taxable 'protective and detective services' under Tax Law 1105(c)(8). The security firm provides guard services as a subcontractor to a construction compa…
Are sales of e-books delivered electronically over the Internet subject to NY sales and use tax?
No. The company sells electronic books through an online bookstore, delivered over the Internet and stored on the customer's own device. E-books aren't tangible personal property -- they have no physi…
Are a retailer's sales of municipally-mandated garbage bags and town-endorsed leaf bags subject to NY sales tax?
It depends on the bag. The town-mandated household garbage bags are exempt; the optional leaf bags are taxable. The mandated bags are embossed with the town's name and logo, must be bought and used to…
Is a hosted email-marketing service performed through the provider's software taxable, and are its training and consulting charges taxable?
The hosted service is taxable as prewritten software, but the optional training and consulting charges are not. Clients log into the provider's 'Hosted Offering' to build, target, and send email/messa…
Does a story-driven live show qualify as a 'live dramatic or musical arts performance' under Tax Law 1115(x), making production-property purchases potentially exempt?
The show qualifies as that kind of performance, but the Department did not decide whether the specific property purchases are exempt. Tax Law 1115(x) can exempt tangible personal property used directl…
Does federal law (the FAAAA) preempt NY sales tax on interstate movers' storage-in-transit lasting more than 30 days?
No. New York taxes the service of storing property (Tax Law 1105(c)(4)), and the Department's long-standing policy is that an interstate mover's 'storage-in-transit' is taxable for the whole period if…
Are personalized postage stamps and a separate 'stitch file' charge for embroidery subject to NY sales tax?
Personalized stamps bought for mailing aren't taxable; the stitch-file charge depends on how it's billed. Postage stamps are treated as tangible personal property only when bought for a purpose other …
Is a subscription for digital-certificate authentication and resolution services (secure-website certificates) subject to NY sales tax?
No. The company verifies a website operator's identity and issues a 'digital certificate' (an SSL-type certificate) so visitors' browsers can confirm the site is genuine and open an encrypted connecti…
Does a Qualified Empire Zone Enterprise's aircraft qualify for the QEZE sales-tax exemption when it's used to fly to business locations outside the zone?
No. During 2008, Tax Law 1115(z) exempted property bought by a Qualified Empire Zone Enterprise (QEZE) only if it was used 'directly and predominantly' in the Empire Zone where the enterprise is certi…
Are a golf club's member dues, its mandatory 'subvention' fee, and its non-member playing fees subject to NY sales tax?
Member dues and the subvention fee are taxable; non-member playing fees aren't. The club's members must each buy a $1,000 'subvention certificate' that gives them a proportional share of the club's as…
Are a company's customized background and investigative reports taxable as detective services or as information services in NY?
They're taxable -- the only question is under which provision. If preparing a report requires a private-investigator license under General Business Law Article 7, the report is a taxable detective ser…
Does a sculpture bought at a NYC auction qualify for the resale exclusion when the buyer loans it to a museum before reselling it?
No -- the purchase is subject to New York sales tax. First, it's a New York sale: the sculpture was shipped to Florida by a private carrier the museum (acting as the buyer's designee) hired, and New Y…
Are sales of title abstracts taxable in NY, at what rate, and what happens when a customer never pays?
Yes -- since September 1, 2010, an abstract of title is a taxable information service under Tax Law 1105(c)(1) (a Department policy change, TSB-M-10(7)S, to match the case law). The vendor must collec…
Is RBOB (reformulated gasoline blendstock for oxygenate blending) a 'motor fuel' subject to NY's excise, petroleum business, and prepaid sales taxes?
Yes. RBOB -- reformulated gasoline blendstock for oxygenate blending -- is a 'motor fuel' for purposes of the Article 12-A excise tax (and petroleum testing fee), the Article 13-A petroleum business t…
Is a law firm's certified abstract of title (or certified continuation) a taxable information service in NY?
No -- it's not taxable. Although the sale of an ordinary abstract of title became a taxable information service on September 1, 2010, a 'guaranteed title search' is treated as an insurance product, no…
Is a certified abstract of title that guarantees the correctness of its search a taxable information service in NY?
No -- it's not taxable. The sale of an ordinary abstract of title became a taxable information service on September 1, 2010, but a 'guaranteed title search' is treated as an insurance product instead.…
Are lifeguard services and pool maintenance services subject to NY sales tax, including when bundled as a 'total pool service'?
Yes, both are taxable. Lifeguard services are protective services subject to tax under Tax Law 1105(c)(8): a lifeguard's job is to monitor the pool to keep swimmers safe and rescue anyone in trouble, …
Are quercetin-based dietary-supplement beverages, concentrates, powders, and chews exempt from NY sales tax as dietary foods/health supplements?
Yes, they're exempt. Tax Law 1115(a)(1) exempts food, dietary foods, and health supplements sold for human consumption, and the regulation (528.2(c)) covers products that supplement or substitute for …
Can a title insurance company buy a title abstract for resale, and is tax still owed if the closing is later cancelled?
No to both relief points. A title insurance company that buys a title abstract to prepare a title insurance policy cannot give the abstract vendor a resale certificate (ST-120), because the purchase d…
Are a utility's charges for water service and sewer service subject to NY sales tax?
Water service is exempt; sewer service is taxable. Water delivered to customers through pipes or mains is exempt from sales and use tax under Tax Law 1115(a)(2), so the water-works company's charges f…
Does the 2009 law (Part N-1) narrowing NY's aircraft exemptions apply to an aircraft bought out-of-state before the law's effective date but first used in NY afterward?
No. Part N-1 of Chapter 57 of the Laws of 2009, which narrowed both the nonresident use-tax exemption and the commercial-aircraft exemption, applies only to sales made and uses occurring after its Jun…
Are a firm's three financial-pricing 'advice services' taxable information services or nontaxable consulting in NY?
It depends on the service. Advice Service P -- automated derivative-pricing advice generated by applying the firm's proprietary formulas to its common, internally-built database -- is a taxable inform…
Is e-discovery access taxable when the customer logs in and uses the vendor's software to review and organize data?
Partly. When the customer uses the vendor's proprietary online tool to classify, organize, batch, and index its uploaded data -- the Data Capturer, Data Reviewer, and Data Manager access levels -- the…
Are electronic-discovery litigation support services -- where the vendor processes a client's own documents -- subject to NY sales tax?
No. The vendor collects, processes, searches, and organizes a client's own electronic documents for litigation -- categorizing, de-duplicating, threading emails, and making them searchable -- which ad…
Are antibacterial hand gels, soaps, and sanitizers exempt from NY sales tax as drugs, or taxable as cosmetics/toiletries?
They're taxable. Tax Law 1115(a)(3) exempts drugs and medicines, but it expressly excludes cosmetics and toilet articles 'notwithstanding the presence of medicinal ingredients.' These antibacterial ha…
Are an IT firm's support-service charges taxable when one fee covers both software work and hardware/equipment servicing?
It depends on how the bill is written. Services performed on computer software (maintaining, monitoring, debugging, adjusting settings) are exempt under Tax Law 1115(o), but services to hardware and e…
Are an FBO's charges for aircraft community-hangar space and tie-downs subject to NY sales tax as a storage service?
No. Tax Law 1105(c)(4) taxes the service of storing tangible personal property, but the Department treats hangaring and tie-downs of aircraft as nontaxable when the owner or lessee has regular or imme…
Is a copper-bearing IUD an exempt drug, or medical equipment, for NY sales tax?
It's medical equipment, not a drug. Tax Law 1115(a)(3) exempts drugs and medicines, and also exempts medical equipment -- but medical equipment is exempt only when bought by patients and is taxable wh…
If an association buys information services it both uses itself and resells to its members, how is NY sales tax applied?
Both ways. The geographic, demographic, and mapping data the association buys are taxable information services under Tax Law 1105(c)(1). The association is the end user as to data it uses in its own b…
How does a customer's trade-in reduce the NY sales tax on a long-term motor vehicle lease?
The trade-in credit must be applied against the capitalized cost (the lease's 'sale price'), which lowers the monthly payments and therefore the taxable amount -- it can't be taken a second time off t…
Which of a railroad IT provider's hosted products are taxable, and how are they sourced for NY sales tax?
They split three ways. Products where the customer uses the provider's hosted software to manipulate its own data are sales of prewritten software (taxable, Tax Law 1101(b)(6)) -- Transportation Manag…
Are charges to rent reusable shipping pallets, plus related fees, subject to NY sales tax?
Yes, the pallet rentals are taxable and so are most of the add-on fees. A lease of tangible personal property is a taxable sale (Tax Law 1101(b)(5)), and renting reusable pallets to manufacturers does…
Is a merchant return-authorization (fraud-scoring) service taxable in NY, and what about a linked discount-coupon service?
The return-authorization service is taxable; the discount-coupon service isn't. The authorization service compiles shoppers' return history and runs it through proprietary risk models to recommend whe…
Are Red Bull Energy Shot and Sugar Free Shot drinks exempt from NY sales tax as dietary supplements?
No -- they're taxable. Tax Law 1115(a)(1) exempts food, dietary foods, and health supplements, but expressly excludes soft drinks and sodas (which include non-carbonated and dietetic beverages). Red B…
Is buying and leasing an aircraft interest through a fractional-style program a taxable property purchase or a nontaxable transportation service?
It's a taxable purchase of tangible personal property, not a nontaxable transportation service. Whether a program like this is taxable property or an exempt transportation service turns on whether dom…
Are a financial data provider's options taxable -- aggregated investor info versus an optional analytics software tool?
Mostly not, but the optional software tool is. The provider gathers and normalizes investor-level portfolio and advisor information from many institutions and delivers it to financial institutions and…
Are an independent personal trainer's services subject to NY State or NYC sales tax?
No. Personal training -- cardiovascular and isometric exercise, weight and resistance training -- is not among the services enumerated as taxable under Tax Law 1105(c), so it isn't subject to New York…
Are 'peer group' market-share analysis services for financial firms taxable in NY?
Yes -- they're taxable information services, and tax must be collected from September 1, 2010. The provider pools data contributed by a consortium of financial firms and gives each customer a report c…
Is a software license taxed in full because the buyer's NY office is the bill-to address, or only on the NY users?
Only on the portion attributable to users located in New York. Prewritten software is tangible personal property (Tax Law 1101(b)(6)), and a license to use it is taxed where possession is transferred …
Are receipts from printing and mailing patient billing statements subject to NY sales tax?
Yes, the printed statements and envelopes are taxable -- but with carve-outs. Producing patient bills from a customer's electronic file and supplying the envelopes is a sale of printed material, which…
How is a custom window fabricator that also installs taxed on materials, fabrication, and installation?
As a contractor. A fabricator that installs its own product is a contractor, and installing complete windows is a capital improvement -- so the charge to furnish and install windows isn't taxable. The…
New York Advisory Opinion TSB-A-10(11)C / 10(41)S: Are video switching services taxable telecommunication services, can the inputs be bought for resale, and is a rented control panel taxable equipment a broadcaster can buy exempt?
Yes. A video switching service is a telecommunication service subject to State and local sales tax and the section 186-e excise tax; the provider may buy the transmission services and equipment it res…
Which fees of a professional-networking site are taxable -- subscriptions, in-network email, job ads, and surveys?
It splits. Premium subscriptions and paid in-network email are taxable information services: they let a customer search the site's member database and contact targeted members -- essentially buying us…
Can a car dealer buy oil and filters tax-free for 'free' oil changes promised to vehicle buyers?
Yes -- if the deal documents say the oil changes are included in the price. When the dealer's sales invoice (or the sale/lease contract or another writing given at the time of sale) states that oil ch…
Is an online-advertising analytics/management platform a taxable information service in NY?
No -- it qualifies for the personal/individual exclusion. The platform lets clients monitor, manage, and optimize their online advertising across third-party ad networks; it retrieves, analyzes, and p…
Is installing window film a taxable service or a nontaxable capital improvement in NY?
It depends on whether it's part of a new/replacement window or applied to an existing one. Applying window film in connection with the original installation or complete replacement of a window is a ca…
Are a yacht-club member's mooring fees subject to NY sales tax as club dues?
Yes -- they're taxable dues. Tax Law 1105(f)(2) taxes dues paid to a social or athletic club. The yacht club is a 'club' because its members control elections, the selection of new members, and manage…
Are comic books, graphic novels, and trade paperbacks exempt from NY sales tax as periodicals?
It depends on the format. Comic books published serially under the same title at least four times a year are exempt periodicals under Tax Law 1115(a)(5). That includes back issues -- but only if the b…
How can a landlord allocate a lump-sum lease between taxable equipment and nontaxable real property for NY sales tax?
Only with a reasonable, documented allocation -- otherwise the whole rent is taxable. When real property and taxable tangible personal property (here a hotel's furniture, fixtures, and equipment) are …
Can an Empire Zone business claim QEZE sales-tax exemptions for purchases made before it got its QEZE certification?
No. Being certified as an Empire Zone business under the General Municipal Law isn't enough -- to claim the QEZE sales-tax benefits, the business must also apply for and receive a QEZE Sales Tax Certi…
Are a financial-data company's charges for data feeds, online reports, application software, technical/research support, and training subject to NY sales tax?
It depends on the item. The company's data feeds are taxable information services (Tax Law 1105(c)) -- they are compilations drawn from a common database that every subscriber accesses, so the 'person…
Is a company that supplies MRI/CT equipment, staff, and supplies to a hospital -- billed per scan -- renting taxable equipment, or providing a nontaxable service? And are its own purchases taxable?
The company is providing a NONTAXABLE diagnostic-imaging service to the hospital, not renting medical equipment and supplies -- so its monthly per-scan fees aren't subject to sales tax. The key is tha…
Are sales of pumpkins by a supermarket or other business subject to NY sales tax?
It depends on the type of pumpkin. Pie pumpkins (sugar, deep red, golden cushaw and similar gourds normally used in cooking pies, cakes, breads, and cookies) are exempt food sold for human consumption…
Are receipts from a call-tracking service sold to car dealerships subject to NY sales tax?
No. The call-tracking service -- which routes toll-free advertising calls, records the conversations, runs exit surveys, and measures advertising performance for each dealer -- is not taxable. It is N…
Is a transfer of prewritten software taxable in NY, and how is the sale sourced when the code sits out of state but is used here?
Yes, it's taxable, and it's sourced to where the software is used in New York. Prewritten computer software is tangible personal property regardless of how it's conveyed (Tax Law 1101(b)(6)), so the c…
When a theater receives movies from studios, is the rental taxable -- and does it matter whether they come by satellite or on a hard drive?
It depends on how the movie is delivered. Movies the theater receives by satellite transmission or otherwise delivered electronically (with no tangible property changing hands) are NOT subject to sale…
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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.