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.
Does an out-of-state seller whose products are sold and shipped through an online marketplace (and stored at a New York fulfillment center) have to register for and collect New York sales tax?
Generally no. The seller is a 'marketplace seller.' When the marketplace provider collects and remits New York sales tax on the sales it facilitates, and publicly commits to do so, the seller need not…
Does an out-of-state online retailer become a New York sales-tax vendor just by storing inventory at, and buying fulfillment services from, an unaffiliated fulfillment company in New York?
No. If the retailer isn't otherwise a vendor, buying fulfillment services from an unaffiliated provider and storing inventory at that provider's New York warehouses does NOT make it a vendor required …
For a service delivered to a New York customer but invoiced to an out-of-state address, does New York sales tax follow the delivery location or the billing address?
The delivery location. New York sales tax is a destination tax: if a seller has nexus and delivers a taxable service in New York, it must collect tax at the combined State and local rate where deliver…
Can an online software marketplace that facilitates downloads by independent vendors be treated as a vendor required to collect New York sales tax?
Yes, at the Commissioner's discretion. The operator runs app/software marketplaces where independent software vendors (ISVs) sell downloadable prewritten software; the operator hosts the products, col…
Is a company that arranges HVAC repairs for retail chains an agent (non-taxable) or a reseller that must collect tax on all its charges including its management fee?
It's a reseller, so all its charges are taxable. The company designs HVAC maintenance programs for national retailers and, when needed, hires pre-screened local contractors (its 'Peer Partner Network'…
New York Advisory Opinion TSB-A-16(6)C: Is an out-of-state real-estate brokerage with no New York office, whose employee worked 26 days in New York on two 2014 sales, doing business and subject to Article 9-A franchise tax?
Yes. A Washington real-estate brokerage with no New York office, whose Connecticut-based employee spent 26 days in New York visiting properties and meeting sellers on two 2014 sales for which it earne…
New York Advisory Opinion TSB-A-16(3)C: Did a bank's regular employee trips to, and computer equipment housed at, a New Jersey hosting center make it 'doing business' outside New York so it could allocate its income under Article 32?
Yes. A bank whose employees regularly traveled to a New Jersey hosting center, where it kept data-processing equipment under a 10-year license, was doing business outside New York and therefore entitl…
Are a cloud DNS-security firm's services taxable in New York, does its data center create nexus, and are its software plug-ins a separate taxable sale?
Yes to nexus and to tax. The firm (and its predecessor LLC) has had New York nexus at least since 2006, when it established a data center here -- physical property in the state is more than a slight p…
New York Advisory Opinion TSB-A-15(5)C: If an alien (Swiss) holding company's disregarded Delaware LLC opens a New York office but only invests in securities for its own account, is the company subject to New York's Article 9-A franchise tax?
No. An alien corporation whose disregarded LLC merely opens a New York office but limits its activity to investing in securities for its own account within IRC section 864(b)(2) is not doing business …
My company's only office is in Connecticut, but eight of my twelve employees (including my CEO) are New York residents who don't work from home. Does that make my company liable for New York's MCTMT?
No. The Metropolitan Commuter Transportation Mobility Tax (Tax Law § 801) applies only to employers "engaged in business within" the MCTD, a standard the Department analyzes the same way as the person…
Must an out-of-state internet wine retailer with a NY direct shipper's license collect NY sales tax despite having no physical presence here?
Yes. An out-of-state wine retailer that holds a New York direct shipper's license must collect New York sales tax on its New York sales, even with no employees, agents, property, or place of business …
New York Advisory Opinion TSB-A-13(6)C: Was an out-of-state remote seller whose employees made limited-purpose trips to New York (inspirational shopping, trade shows, vendor meetings) doing business and subject to Article 9-A franchise tax?
No. On the stated facts, the out-of-state catalog and Internet seller was not doing business in New York, because its employees' limited-purpose trips for 'inspirational shopping,' attending trade sho…
New York Advisory Opinion TSB-A-13(4)C: Is an out-of-state company whose New York independent contractors hold consigned inventory and make sales and deliveries subject to franchise tax, or is it protected by the fulfillment-services exclusion or Public Law 86-272?
Yes. The out-of-state company is subject to franchise tax, because consigned inventory it still owns in New York gives it nexus, and neither the fulfillment-services exclusion nor Public Law 86-272 pr…
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 -…
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…
New York Advisory Opinion TSB-A-11(10)C: Is an out-of-state seller of tangible gifts protected from corporate franchise tax by Public Law 86-272 when some orders are filled by unaffiliated New York third-party vendors?
No, it is not subject to franchise tax. A North Carolina company that sells only tangible gifts and awards into New York -- some shipped by unaffiliated New York third-party vendors it never takes tit…
New York Advisory Opinion TSB-A-11(5)C: Could a foreign corporation that is a general partner (with an indirect interest in a New York LLC) make the foreign corporate limited-partner separate-accounting election?
No. The foreign corporation could not make the limited-partner separate-accounting election, because it was not subject to New York tax solely as a result of the limited-partner provision (20 NYCRR 1-…
New York Advisory Opinion TSB-A-10(8)C: Does a foreign equipment seller owe Article 9-A tax, and if installation/training push it past PL 86-272, is it taxed only on those receipts?
It depends, and there is no partial exemption. A foreign corporation that only solicits orders for testing equipment (approved and shipped from outside New York) is protected by Public Law 86-272 and …
New York Advisory Opinion TSB-A-10(4)C/(23)S: Are charges to use an online virtual-call-center network (and related billing and call-handling services) subject to New York sales tax?
Partly. Charges to access the LiveXchange virtual-call-center network are taxable receipts from the sale of prewritten computer software, sourced to where the users are located. PaySource's billing an…
New York Advisory Opinion TSB-A-10(2)C: Does an out-of-state RV maker (Jayco) owe Article 9-A franchise tax when it only solicits New York sales and uses independent dealers for warranty repairs?
Mostly no, but it depends on the facts. An out-of-state recreational-vehicle manufacturer whose only New York activity is soliciting orders (approved out of state) and whose authorized dealers perform…
New York Advisory Opinion TSB-A-09(2)C: Is a foreign non-life insurer with no New York premiums taxable under Article 33 solely because it is a limited partner in a fund doing business in New York?
It depends on the fund. A foreign non-life insurance corporation not licensed in New York and with no New York premiums can still be subject to the Article 33 insurance franchise tax if it is a limite…
Does the federal Public Law 86-272 solicitation-only protection apply to S corporations, LLCs taxed as partnerships, and their owners for New York corporate franchise and personal income tax?
Yes, with limits. An S corporation whose only New York activity is soliciting orders is protected by PL 86-272 - which also makes it ineligible to be a New York S corporation, so nonresident sharehold…
Is an out-of-state corporation taxable in New York as a general partner of a partnership that leases New York space, and is its gain from selling an FCC broadcast license a business receipt in the allocation factor?
Yes to nexus, no to the receipts factor. As general partner of a partnership that leased space in the Empire State Building, the corporation is subject to Article 9-A tax. The gain on selling its FCC …
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…
Is a foreign life insurance corporation with no New York premiums subject to New York tax because it holds a limited partnership interest with a basis over $1 million in a partnership doing business in New York?
Yes, with an exception. A foreign life insurer with no New York premiums is subject to Article 33 tax because its limited-partner basis in a New York partnership exceeded $1 million (deeming it to par…
When an out-of-state company uses an unrelated fulfillment provider that leases a warehouse from the company's affiliate, is that warehouse the provider's 'premises' so the fulfillment-services exemption protects the company?
Yes for the user, no for the owner. A warehouse an affiliate leases to an unrelated third-party fulfillment provider is treated as the provider's 'premises,' so the out-of-state company using those fu…
Is an out-of-state company subject to New York's corporate franchise tax when its only New York activity is delivering equipment it sold, including occasional deliveries in its own truck?
No. An out-of-state party-equipment seller whose only New York activity is delivering goods it sold - by common carrier or occasionally its own truck - is not doing business, employing capital, owning…
Is a non-U.S. fund whose only activity is buying and holding life-settlement policies - some originally owned by New York residents - subject to New York's insurance tax or general business franchise tax?
No. A non-U.S. fund whose sole activity is buying and holding traded life-insurance (life-settlement) policies is not 'doing an insurance business,' so it is not an insurance corporation under Article…
Does an out-of-state company selling product service contracts through in-state retailers, web referrals, or direct mail have enough nexus with New York to have to collect sales tax?
Yes, in all three sales scenarios described -- because New York retailers act as Company's designated repair centers performing warranty repairs on its behalf, that in-state activity by a representati…
Is an out-of-state manufacturer that solicits New York orders through a sales representative working from a New York home protected from the franchise tax by Public Law 86-272?
Yes. An out-of-state plastics manufacturer whose New York activity is limited to soliciting orders - approved and shipped from outside New York - is exempt from the franchise tax under Public Law 86-2…
Does an out-of-state promotional-products company have New York sales tax nexus, and are its baseball caps and cameras shipped to New York recipients exempt promotional materials?
A Washington-based promotional-products seller with no property, employees, or solicitation activity in New York has no sales tax nexus and can't be required to register or collect New York tax, but i…
Is an out-of-state alarm-monitoring company doing business in New York when it uses third-party contractors to install and service equipment for its New York customers?
Not from the contractors alone. An out-of-state alarm-monitoring company with no New York office, employees, representatives, or inventory is not doing business in New York merely because it hires thi…
Does an out-of-state HVAC service-contract manager with one New York employee and a network of local subcontractors have to collect New York sales tax, and how are capital-improvement vs. taxable repair charges split?
Yes. Even though the company has no office in New York and only one resident employee (who does site surveys, not repairs), hiring local subcontractors to perform HVAC installation, maintenance, and r…
Is an out-of-state corporation whose only New York activity is a researcher it hired to work at a New York university subject to New York Article 9-A franchise tax?
It depends on the worker status. If the New York researcher is the corporation's employee, that activity is doing business in New York and the corporation owes Article 9-A franchise tax and must file …
Is a Texas parent that runs payroll for its New York operating subsidiary subject to New York Article 9-A franchise tax?
It depends on whose employees the New York workers are. A Texas parent that handles payroll for its New York operating subsidiary (PPNY) under the parent's federal EIN is subject to Article 9-A only i…
Is an out-of-state professional employer organization subject to New York franchise tax because it processes payroll for two New York-resident drivers who work outside New York?
No. An Ohio professional employer organization whose only New York connection is processing payroll (for a fee) for two New York-resident truck drivers who work for an Ohio trucking company and do not…
Is an out-of-state manufacturer subject to New York franchise tax because a director listed the company's phone number in a New York directory without the company's knowledge?
No. An Ohio manufacturer of currency-changing equipment is not subject to Article 9-A where its only New York link was a telephone listing a director placed (using her own home number) in a New York d…
Are membership dues for a national boat-towing club subject to New York sales tax, and does the club (or its administrator) have to register and collect New York tax?
The dues themselves aren't taxable — BoatU.S. isn't a 'social or athletic club' under New York's club-dues tax, since members don't control any of its activities, elections, or management, so its memb…
Does an out-of-state food distributor lose Public Law 86-272 protection when its delivery drivers pick up damaged goods and collect payments in New York?
Yes. The Pennsylvania food distributor's salespeople solicited orders in New York and it delivered by its own trucks (activities that, by themselves, stay within Public Law 86-272). But its delivery d…
Does an out-of-state bathrobe and towel manufacturer have to register as a New York sales tax vendor and collect tax on all its New York sales — including Internet sales — just because one independent commission-only salesman shows its children's clothing line to a few New York retail stores?
Yes. Having even a single independent salesman solicit business in New York on the manufacturer's behalf — even one who's paid only a modest commission and performs no other functions — is enough cont…
If a nationwide outdoor-goods retailer opens a New York retail store, does that create sales-tax nexus for a separate, related mail-order catalog partnership that has no independent physical presence in New York?
No, not by itself. As long as the retail-store company and the mail-order catalog partnership remain genuinely separate and distinct — the store doesn't perform any sales, referral, or fulfillment act…
Is a foreign corporation that rents a small New York office for its New York-resident president subject to New York franchise tax under Article 9-A?
Yes. The corporation, a Delaware company headquartered out of state, rented a small New York office for its New York-resident President/CEO who used it about one week a month, and the office phone was…
Which of a research-and-advisory firm's various services — subscription research, white papers, reprints, teleforums, in-person presentations, and strategic consulting — are subject to New York sales tax when delivered to a customer in New York?
It splits by service. The subscription 'Continuous Advisory Service' (research notes and access to the online research library, shared identically with many clients) is a taxable information service, …
When an out-of-state distributor with New York nexus drop-ships candy and cookie dough directly to an in-state third party on behalf of a wholesaler customer with no New York nexus, does the distributor have to collect New York sales tax, and what paperwork does it need from the wholesaler?
Cookie dough is exempt food, so the distributor never needs to collect tax on it regardless of paperwork. Candy is different — it's specifically excluded from the food exemption and presumed taxable —…
Does a Canadian manufacturer with no New York office, warehouse, or resident sales staff have enough nexus with New York to be required to register and collect sales tax, based only on trade-show attendance and occasional sales-visit trips by its own traveling salespeople?
Yes, nexus exists. Trade-show attendance alone (two shows a year, no orders taken there) wouldn't be enough by itself. But Company X also sends its own salespeople into New York one to two times a yea…
Does a Canadian nonprofit's new internet store, selling and renting films and videotapes to U.S. customers, have to collect New York sales tax on orders delivered to New York, given that it maintains a small New York City office?
Yes. Even though its web server, inventory, and operations are based in Canada, the National Film Board's small New York City office is enough to establish nexus and make it a New York vendor. Sales a…
Does an out-of-state seller lose Public Law 86-272 protection when its employees assemble machines and perform warranty service in New York?
Yes. The Illinois seller's New York employees assembled and disassembled large glass machines shipped in by common carrier and performed warranty and repair service. Those activities went beyond deliv…
Can a mail-order company that used to have traveling sales representatives in New York, but no longer has any physical presence there, stop collecting New York sales tax and surrender its vendor registration?
Yes. Once a mail-order company has no employees, independent sales representatives, or other physical presence in New York, catalog and website solicitation alone doesn't create nexus, so it may surre…
Does Public Law 86-272 protect a company whose New York salespeople solicit free-publication subscriptions and sales of advertising space?
No. Public Law 86-272 only protects soliciting orders for sales of tangible personal property. The company gives its publications away free (no sale, no receipts) and earns its money selling advertisi…
Is an out-of-state company that hires New York subcontractors to do janitorial work, with no office or employees here, doing business in New York?
No, if the subcontractors are genuine independent contractors. A foreign corporation with no office, employees, representatives, or inventory in New York that merely hires New York subcontractors as i…
Does an out-of-state manufacturer that sells to New York customers, using only an independent sales representative who visits every few months, have to register as a New York sales tax vendor?
Yes. Even a single independent manufacturer's representative who periodically visits New York customers on the manufacturer's behalf creates enough nexus to require the out-of-state manufacturer to re…
Is an out-of-state manufacturer that keeps inventory at an unaffiliated New York firm which modifies the goods subject to Article 9-A franchise tax and required to register as a sales-tax vendor?
Yes to both. Company A, an out-of-state blower manufacturer, keeps inventory at unaffiliated Company B in New York, which attaches motors and pulleys to order before shipping to customers. Because tha…
Does an out-of-state manufacturer that only makes wholesale sales for resale, and whose sole New York presence is two traveling sales representatives, have to register as a New York sales tax vendor?
Yes. Having even just two traveling sales representatives soliciting business in New York is enough of a physical presence to satisfy the constitutional nexus requirement, so the out-of-state manufact…
Does an out-of-state reed manufacturer have to register for New York sales tax just because it employs three New York residents, working from their own homes, to test and pack its products before shipping them back out of state?
Yes. Simply having three New York-resident employees performing work for the company -- even work as limited as testing and packing product that gets shipped right back out of state, with no in-state …
Does an out-of-state mail-order computer company create New York sales tax nexus just by hiring an independent New York repair company to make on-site warranty repair visits to its New York customers?
Yes. Even though the mail-order computer company has no office, sales force, or sales representatives of its own in New York, hiring an independent New York-based repair company to perform on-site war…
Can an out-of-state printing company accept a New York Resale Certificate (Form ST-120) from an out-of-state customer that isn't registered in New York, when the finished product is shipped directly to that customer's own customer in New York?
Yes. An out-of-state purchaser doesn't need to be registered with New York to use Form ST-120, Resale Certificate, in a drop-shipment transaction -- as long as it's registered to collect tax in anothe…
Are offshore feeder (Spoke) funds doing business in New York merely by being partners in a New York-present master (Hub) fund that only trades securities or commodities for its own account?
No. Under the self-trading exemption in section 209.2-a, an offshore (alien) Spoke feeder fund is not deemed to be doing business, employing capital, or maintaining an office in New York merely becaus…
If out-of-state companies hire New York-based, homebased independent contractors to take inbound customer calls and orders by phone, does that alone make the out-of-state companies responsible for collecting New York sales tax on their New York sales?
No, not by itself. Having New York-based, homebased independent contractors take inbound telephone orders and provide customer service on behalf of an out-of-state company is a 'fulfillment service' u…
Does an online auction platform that lets independent dealers list and sell collectibles -- handling the website, bidder registration, and credit-card processing, but never taking title to the goods -- become a New York sales-tax vendor itself, or create nexus for the dealers who sell through it?
No, on all three points. The platform itself is not a sales-tax vendor because its role -- hosting listings and handling order/payment logistics for independent dealers -- is internet advertising plus…
Is an out-of-state manufacturer with two New York sales representatives, one working from a home office, subject to Article 9-A, or is it protected by Public Law 86-272?
Protected. An out-of-state paper-products manufacturer whose only New York activities are two sales representatives soliciting orders -- one working from his New York home -- is not maintaining an off…
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.