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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If I sell a product from a New York terminal to out-of-state customers who arrange their own pickup, do I have to charge New York sales tax, and does it matter whether a common carrier or the customer's own truck picks it up?
It depends on who takes physical delivery in New York. Sales are taxable when the customer (or the customer's own hired carrier) picks up the asphalt in New York, even if it's headed out of state — bu…
If I rent construction equipment to a subcontractor working on a government project like the Freedom Tower, do I have to charge sales tax, or is the rental exempt because the ultimate owner is a tax-exempt government entity?
Yes, tax was due. New York's governmental-purchase exemption didn't cover this crane rental because the subcontractor renting the cranes was never named as an appointed agent of the Port Authority on …
If I rent an individual free-standing garage to an apartment tenant, either bundled into rent or as a separate charge, do I have to charge New York sales tax on it as a parking or garaging service?
No. Renting an individual, numbered garage to a tenant under a lease that gives the tenant exclusive control of that specific space is a lease of real property, not a taxable parking or garaging servi…
If I sell memberships letting people drive their own cars on my private road course, are the membership fees and annual dues subject to New York sales tax as club dues or admission charges?
No. Membership license fees and annual dues for a private road-course driving facility are not subject to sales tax, because driving on the course is a participant sporting activity exempt from the am…
If I run a web-based platform that homecare agencies and subcontractors log into to schedule care and track visits, is access to my software taxable, and is training or customization also taxed?
Yes. Charges for accessing a web-based homecare scheduling and time-and-attendance platform are taxable as a sale of prewritten software, sourced to the locations of the agencies and subcontractors wh…
New York Advisory Opinion TSB-A-09(9)C/(24)S: Are telecom services a reseller sells to offshore call centers (calls always originating or terminating offshore) subject to New York sales tax or the section 186-e excise tax?
No. A telecom reseller's services sold to offshore call centers are not subject to New York sales tax or the section 186-e excise tax. Because every call either originates or terminates at the offshor…
If customers buy fractional ownership interests in an aircraft I manage, but I retain control over scheduling, pilots, and maintenance, are their payments taxed as a rental of the aircraft or as an untaxed transportation service — and is my own purchase of the aircraft taxable?
Neither is taxed as a sale of the aircraft. Because the fractional-share operator retained full dominion and control (scheduling, pilots, maintenance, and the right to substitute aircraft), customer p…
If my store charges customers a separate fee for a personal shopper to pick their groceries, and a separate fee for home delivery, are either of those service charges subject to sales tax?
It depends which service. A grocery store's separate personal shopping fee is not taxable, but its home delivery fee is taxable in full whenever the delivered order includes any taxable item or servic…
If my engineering firm designs products for clients and delivers drawings, prototypes, and CAD data, which parts of my charges and which of my own material purchases are subject to New York sales tax?
Mostly untaxed. An engineering firm's product-development service charges (including transferring CAD data electronically) aren't subject to sales tax unless the firm separately sells taxable prototyp…
My design firm delivers logos, brochures, and website designs to clients either on disc or electronically — does the delivery method change whether my design charges are subject to New York sales tax?
It depends entirely on delivery method. A design firm's charges are fully taxable when the final design (logos, brochures, website HTML code) is delivered on tangible media like a disc to a client in …
My company licenses customers access to markdown-recommendation software hosted on our own server, with separate charges for implementation, support, and hosting — which of these charges are subject to New York sales tax?
Mostly taxable. Monthly license fees for remotely-accessed, non-downloaded markdown-recommendation software are taxable prewritten computer software because the customer gains the right to use it even…
My company sells subscription reports built from a shared database of evaluator input about my customers — are those subscription fees a taxable information service in New York?
Taxable. A web-based subscription service's fees for evaluation reports on investment broker dealers are a taxable information service under Tax Law §1105(c)(1), because the reports are built from a c…
My country club has both stockholder-members and non-stockholder members, with dues, initiation fees, and stock purchase charges — are membership dues and fees subject to New York sales tax?
Taxable. A golf/country club's membership dues, stock-purchase fees, assessments, initiation fees, and minimums are all subject to sales tax as social-or-athletic-club dues under Tax Law §1105(f)(2), …
If my company sells human- or animal-tissue surgical implant products to hospitals, is that sale exempt from New York sales tax as a prosthetic aid?
Exempt. A processor's human- and animal-tissue soft-tissue implant products sold to hospitals qualify as tax-exempt prosthetic aids under Tax Law §1115(a)(4), because they replace missing or malfuncti…
My company licenses mortgage brokers access to our loan-origination software hosted entirely on our own out-of-state servers, with no download and no code ever touching the subscriber's computer — is our subscription fee subject to New York sales tax, and does the federal Internet Tax Freedom Act protect us?
Taxable. A mortgage-technology company's subscription fees for its "Encompass Anywhere" Internet-hosted loan origination and processing software are subject to New York sales tax as a sale of prewritt…
My company provides automated voice-calling services to airlines, banks, and other businesses using proprietary software we keep entirely in-house — is our calling-service fee or our own software subject to New York sales or use tax?
Not taxable. An automated voice-message provider's fees for placing calls to customer-designated recipients aren't subject to New York sales tax, because the service isn't among the enumerated taxable…
My company sells FDA-classified copper IUDs to both patients and medical providers — do they qualify for New York's sales tax exemption for drugs and medicines?
No, not as drugs — but yes, functionally exempt for patients. The ParaGard copper IUD does not qualify for New York's drugs-and-medicines sales tax exemption because the FDA classifies it as a medical…
My company retrieves and delivers copies of individual patients' confidential medical records to requestors on behalf of medical facilities — is that record-retrieval fee subject to New York sales tax?
Untaxed. Fees for retrieving and furnishing an individual's own specifically identified, confidential medical or insurance records to an authorized requestor are not a taxable information service or s…
My out-of-state satellite Internet provider furnishes required equipment to New York customers through third-party dealers, and I've never paid New York sales tax on the equipment purchase itself — do I owe New York use tax on that equipment?
Mostly exempt in practice. An out-of-state satellite Internet provider owes New York use tax (not sales tax) on customer premises equipment it furnishes to New York customers as an integral part of it…
I rent scaffolding, hoisting equipment, and temporary walkways to contractors for construction projects and separately charge for disassembly — is any of this taxable, and can I buy my equipment tax-free for resale?
Taxable rental, exempt equipment purchase. Rentals of scaffolding, hoisting equipment, safety netting, and temporary walkways are always subject to sales tax as a rental of tangible personal property,…
We install closed circuit television/security camera systems for commercial buildings — is our installation charge a taxable sale, or can it qualify as an exempt capital improvement?
It depends on the component. A closed circuit television installer's charges for in-wall/ceiling wiring and cable installed like a building's electrical system can qualify as an exempt capital improve…
My platform helps buyers and sellers complete two types of syndicated loan trades over the Internet, sometimes letting the seller input their own data directly instead of us doing it — is either product a taxable information service or software sale in New York?
Split result. Neither of a financial platform's two loan-settlement products is a taxable information service, because converting a subscriber's own data into contract form isn't furnishing new inform…
We're building a multi-million-dollar custom steam pipeline on our own land to supply a long-term industrial customer — does this construction qualify as an exempt capital improvement, or is it a taxable installation?
Exempt as a capital improvement. A custom-engineered, above-ground steam pipeline that a facility owner builds on its own land to supply an adjacent industrial customer qualifies as an exempt capital …
We built software for one airline, then repurposed it as the base for a licensed product we now customize and sell to many different airlines — is that taxable prewritten software, or exempt custom software?
Taxable. Software originally custom-built for one airline becomes taxable prewritten computer software once it's reused as the base product licensed and re-customized for other airline customers, beca…
My company provides automated voice-calling services to airlines, banks, and other businesses using proprietary software we keep entirely in-house — is our calling-service fee or our own software subject to New York sales or use tax?
Not taxable. An automated voice-message provider's fees for placing calls to customer-designated recipients aren't subject to New York sales tax, because the service isn't among the enumerated taxable…
My regulatory-compliance and investigative firm offers 15 different service lines (AML, OFAC, fraud reviews, forensic technology, background checks, training, and more) — which of these count as taxable 'detective services' in New York, and which are untaxed advisory work?
Split by activity, not by service line. A regulatory-compliance firm's advice-and-training work (reviewing policies, developing programs, training staff) is untaxed consulting, but the moment the firm…
We license IT and business-skills e-learning courseware, a searchable reference library, an optional mentoring add-on, and live instructor-led virtual classroom sessions — which of these are subject to New York sales tax, and how do we source tax when our customers' employees are spread across multiple states?
Split result. SkillSoft's hosted e-learning courseware is taxable prewritten software (license fees taxed based on where each licensed user is located, even without any download), its Referenceware se…
We sell interactive online e-learning courses, plus separate add-on charges for a reference library, a live mentoring service, and a course-planning consultation — which of these are subject to New York sales tax?
Mixed result. Highly interactive online e-learning courses are taxable as a sale of prewritten computer software (whether accessed online or downloaded), and a reference-library add-on is a taxable in…
My organization is a certified tax-exempt fraternal insurance company, but I sell discounted books and gifts to members by phone/Internet through a 2008 law change targeting 'remote sales' — do I now have to collect New York sales tax on those sales?
Yes, must collect. A New York fraternal insurance company that is otherwise a certified tax-exempt organization must still collect and remit sales tax on its regular phone/Internet retail sales of boo…
I manufacture goods and sell them for resale to retailers under resale certificates, but sometimes the retailer's own customer pays part of the price directly to me instead of to the retailer — does that direct payment turn into a taxable sale by me?
No new sale. A window-treatment manufacturer that sells to retailers for resale (properly documented with resale certificates) does not make a new taxable sale, and owes no sales tax, when a retailer'…
My company prints and mails direct-mail advertising coupons for local merchants from an out-of-state printing plant to addresses all over the country, including New York -- do I owe New York sales or use tax on the mailings that go to New York addresses?
Mostly exempt. A national direct-mail advertiser's printed coupon materials, produced and mailed out of state to New York recipients on behalf of its franchisees' advertiser-clients, are exempt promot…
My client manufactures displays in New York and sells FOB origin, with the customer's own common carrier picking them up at our dock -- do we still owe New York sales tax based on where the carrier ultimately delivers them, even though title passed at our loading dock?
Taxed at the delivery destination, not the dock. A New York display manufacturer selling FOB origin, where title passes to the customer at the company's own loading dock, must still collect New York s…
My client's records-retrieval business gets authorized requesters copies of their own confidential medical records, tax returns, or Social Security statements from the actual custodians -- are those retrieval fees subject to New York sales tax?
Not taxable, with one exception. A records-retrieval company's fees for obtaining and delivering an individual's own specifically-identified confidential medical, tax, or Social Security records -- us…
My catering company and a commonly-owned event-rental affiliate often work the same events for the same clients but bill separately -- can the affiliate keep using resale certificates with its vendors even though we're related companies?
Yes, as long as they're genuinely separate. A commonly-owned affiliate of a catering company that independently sells and rents event items (tents, flowers, entertainment) to the same customers at the…
Are downloadable wallpaper, games, ringtones, and ringback tones sold by a mobile phone carrier subject to New York's utility tax, telecommunications excise tax, or sales tax?
Mostly no, with one exception. A carrier that separately and reasonably bills for wallpaper, games, ringtones, and ringback tones can exclude them from the section 186-a utility tax, the section 186-e…
I sell access to hosted image-editing software that lets customers upload and manipulate product photos on my servers — no software is ever downloaded to the customer. Do I still owe New York sales tax on the license fees?
Yes, taxable. Adobe Systems Inc.'s annual license fees for its "OnDemand ASP Software" — a hosted product that lets customers upload and manipulate product images on Adobe's own out-of-state servers, …
I run a portable moving-and-storage-container business with a long list of separate charges — delivery, moving, storage, damage waivers, cleaning, repairs, supplies — which of these actually owe New York sales tax?
It splits by charge type. A portable storage container company's charges for the container rental itself, for storage at the dealer's warehouse (and access to it), for moving to/from that warehouse, f…
I supply merchandise to mall kiosk operators who are independent contractors, and their credit card sales get deposited into my account while they keep their own cash sales — who has to collect and remit the sales tax, and does it matter whether the customer paid cash or credit card?
The supplier collects either way. A distributor that supplies merchandise to independent-contractor kiosk/cart operators ("lessee-vendors") in shopping malls is a "co-vendor" that must pre-collect New…
My family-owned ferry company runs the only vehicle ferry between two New York towns, is regulated by the county, and serves as an emergency evacuation route -- can we get a refund or credit of the sales and use tax we've paid on our ferry boats?
No refund under the old rule, but a new exemption applies going forward. A private, county-regulated vehicle ferry company does not qualify for the long-standing local-transit-vessel refund in Tax Law…
My client rents portable storage units and separately offers an optional transportation service to move the loaded unit to a new location, billed separately whether under the standard rental agreement or a standalone transportation contract -- is that optional moving fee taxable?
Rental is taxable, optional moving fee is not. A portable storage container company's basic rental, pickup, delivery, and warehouse-storage charges are all taxable as a rental of tangible personal pro…
My property is undergoing state-mandated environmental remediation for old oil-tank contamination -- can I treat the remediation contractor's charges as an exempt capital improvement instead of a taxable maintenance service?
Taxable, with a possible later refund. Environmental remediation work -- excavating and removing petroleum-contaminated soil, installing monitoring wells, and backfilling with clean soil under a state…
I run pay-per-minute Internet cafe workstations and offer an optional 'premium' upgrade that lets customers edit documents in real desktop software instead of just viewing them -- is the basic Internet time exempt, and is the premium software upgrade taxable?
Split result. A pay-per-minute Internet cafe's basic Internet access charge is exempt from New York sales tax under the state's Internet access exemption, but its optional 'premium service' upgrade --…
My company runs a warehouse that repackages inventory before shipping it to my own retail stores — are the boxes, tape, and wrap I buy for that internal shipping exempt from sales tax as packaging materials?
No exemption. A pet-supply retail chain must pay New York sales or use tax on the boxes, tape, wrap, and other packaging materials it buys and uses to ship inventory from its own warehouse to its own …
I rent fully furnished condominium apartments in a New York City tower complex on month-to-year-or-longer leases, with the same daily housekeeping and amenities offered equally to all residents -- do I owe New York's hotel occupancy tax on the rent?
Not taxable as hotel occupancy. A landlord renting fully furnished New York City condominium-tower apartments on month-to-year-or-longer leases, under a genuine landlord-tenant relationship with no ho…
I rent fully furnished condominium apartments in New York City on month-to-month-or-longer leases with a real landlord-tenant relationship, not hotel stays -- do I owe New York's hotel occupancy tax on the rent?
Not hotel tax, but some add-ons are taxed. A landlord renting fully furnished New York City condominium apartments on month-to-year-or-longer leases, under a genuine landlord-tenant relationship with …
My company subsidizes an outside contractor that runs our employee dining facility, covering whatever costs exceed daily meal sales -- is that subsidy taxable, and can our QEZE (Empire Zone) certification exempt it?
Taxable, no QEZE relief. An employer's payments that subsidize a food-service contractor's operation of the employer's in-house employee dining facility -- covering the gap between meal revenue and th…
I pay an annual fee to a country club just to hold a certificate that lets me apply for membership someday, even though I'm not a member and have no membership privileges — is that fee taxable as club dues?
Taxable, but as an initiation fee, not dues. Annual payments a homeowner makes to a country club solely to maintain a "Membership Eligibility Certificate" -- a prerequisite for someday joining the clu…
As a tenant leasing space in a government-owned airport terminal, do I owe sales tax on a contractor's bill for repairs and maintenance, including the materials the contractor uses -- and does it matter if I buy the materials myself instead?
Fully taxable when the contractor bills for the whole job, but there's a workaround. When JetBlue Airways hires a contractor to repair or maintain its leased terminal space at JFK Airport, the contrac…
My holding company leases a corporate jet to me, and I use it mostly to fly a paying affiliate's people and cargo -- is the lease exempt from New York sales tax as a 'commercial aircraft,' and will a later merger of my holding company into me trigger sales tax on the plane?
Yes, exempt as a commercial aircraft, and the merger transfer isn't taxed either -- but only if the for-hire use holds up. Where an aviation-holding LLC leases a jet to its corporate parent, and the p…
My company bought a corporate jet out of state and dry-leased it to an affiliate that operates it entirely outside New York — do we owe New York sales or use tax now, and would it change if we later brought the plane to New York and used it to provide 'for hire' air transportation to that same affiliate?
No tax now, exemption available later. A company's purchase and dry-lease of a corporate aircraft to an affiliate is not subject to New York sales or use tax where the aircraft is delivered and used e…
My company buys frame relay data service that connects our New York offices to our data center in New Jersey — is that subject to New York sales tax, even though the carrier separately bills for the New York-only segment of the connection?
Not taxable. A financial services company's purchase of frame relay data-transmission service connecting its New York offices to its New Jersey data center is untaxed interstate telecommunication serv…
I publish school yearbooks under contract with schools, clubs, and activity funds in New York -- who has to collect sales tax on the yearbooks, me or my school customer?
It depends entirely on who Petitioner's actual contract customer is. If the customer is genuinely a public school district itself (invoice names the district, contract signed by someone authorized to …
I sell customized emergency-preparedness plans, training videos, brochures, and live drills to schools and businesses -- which parts of my invoice owe New York sales tax?
It depends on what's billed separately. New York taxes AK Productions' physical products -- training videos on tape or disc, brochures, evacuation maps, floor plan diagrams, and emergency signage -- a…
I sell access to software that produces scannable and nonscannable tax and business forms -- is that a taxable sale of software, and is the computer hardware I use to build it exempt?
Yes, it's a taxable sale of software. STF Services Corp.'s SuperForm products (installed from a CD or downloaded from the Internet) let customers fill in and file scannable/nonscannable federal, state…
I run a portable-toilet rental and servicing business — do I owe sales tax on the toilets and supplies I buy to run it, or on the insurance I charge customers for the toilets?
Split result. A portable-toilet servicing company owes New York sales and use tax on its purchases of the toilets themselves (and the parts/paint used to build and maintain them), because providing to…
I electronically process physicians' medical insurance claims and arrange printing and mailing of patient invoices for a fee -- is that a taxable New York information service?
Not taxable. New York held that a health-IT vendor's charges to physicians for electronically submitting patient billing data to insurance companies to file claims, facilitating insurer payments, and …
I pay an annual individual affiliate fee to the Transportation Research Board for library access, meeting discounts, and publications -- does New York charge sales tax on that fee?
Not taxable. Annual individual affiliate fees paid to the Transportation Research Board -- a research-focused nonprofit, not a social or athletic club -- are not subject to New York sales tax, because…
My company waterproofs leaking basement wall cracks by injecting a clay-based sealant through drilled holes and covering the crack with a vinyl moisture barrier panel -- is that an exempt capital improvement or a taxable repair to real property under New York sales tax?
Taxable repair, not a capital improvement. A basement waterproofing contractor's method of injecting a clay-based sealant through drilled wall holes and covering the crack with a vinyl moisture barrie…
I'm an out-of-state jewelry retailer that sells through satellite and cable TV home-shopping arrangements to New York viewers -- do those broadcast and airtime-purchase relationships give me nexus, requiring me to register and collect New York sales tax?
No nexus from the TV distribution deals alone, but the Department stopped short of a final answer. Gems TV USA Limited, a Delaware corporation with no New York locations, employees, warehouse, or plac…
I manufacture and permanently install baggage-handling systems at airport terminals leased by airlines from government-owned airports -- do I owe New York sales or use tax on the materials, labor, and installation charges?
Usually exempt as a capital improvement, but only with the right paperwork. G&T Conveyor's permanently bolted, custom-built baggage-handling systems installed in airport terminals qualify as capital i…
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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.