A newly formed company moves property within buildings using carts, including between floors, but doesn't transport goods between locations or on public roads. Is it taxed as a 'transportation company' under sections 183/184, or under the general Article 9-A franchise tax -- and does it owe sales tax on its moving-service receipts?

Plain-English summary

Buehler Moving Ltd., a newly formed company, provides in-house moving services using carts to relocate property within a building, including moving items from floor to floor. It asked two questions: which corporate tax applies to it, and whether it must collect sales tax on its service receipts.

Tax Law §§ 183 and 184 impose special taxes on corporations principally engaged in a trucking or other transportation business. Article 9-A's franchise tax, by contrast, applies generally to corporations doing business in New York that aren't otherwise taxed under a different Tax Law article. The Department held that moving property strictly WITHIN the confines of a building -- as opposed to transporting goods between separate locations, which is the essence of a "trucking or transportation" business -- doesn't fall within the meaning and intent of §§ 183/184. Buehler is therefore an ordinary Article 9-A taxpayer, filing its franchise tax return on Form CT-3.

On the sales tax question, Tax Law § 1105(c) imposes sales tax only on a specific, enumerated list of services. Because in-building moving services aren't among the services listed there, the Department concluded Buehler is not required to collect sales tax on its receipts from the moving services it provides.

What this means for you

In-building movers and similar internal-relocation services

If your business's "moving" activity is confined to relocating items within a single building (rather than transporting goods between separate locations), don't assume the trucking/transportation-company tax regime under sections 183/184 applies to you -- the Department treats purely in-building movement as ordinary Article 9-A business activity, not "transportation" in the statutory sense.

Sales tax applies only to specifically enumerated services

New York's sales tax on services (Tax Law § 1105(c)) is a specific, enumerated list, not a catch-all for any service business. If your service doesn't appear on that list -- as in-building moving didn't here -- you're not required to collect sales tax on it, regardless of how "service-like" the activity might seem.

Common questions

Q: Does a company that moves property only within a building qualify as a "transportation company" under sections 183/184?
A: No -- that regime is for trucking and transportation businesses that move goods between locations; purely in-building movement is taxed under the general Article 9-A franchise tax instead.

Q: Do in-building moving services require sales tax collection?
A: Not under Tax Law § 1105(c)'s enumerated list of taxable services, which doesn't include this type of moving service.

Q: Can another in-building moving company rely on this Opinion?
A: No. It binds the Department only as to Buehler Moving's own facts and can't be relied upon by other taxpayers, even those providing an apparently identical in-building cart-moving service.

Citations and references

Statutes:

• Tax Law § 183; § 184 (trucking/transportation company taxes)
• Tax Law § 209 (Article 9-A franchise tax)
• Tax Law § 1105(c) (sales tax on enumerated services)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/corporation_ao_1982.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/corporation/a82_1c.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-82(1)C
Corporation Tax
February 4, 1982

Taxpayer Services Division
Technical Services Bureau
STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. C811228A

On December 28, 1981, a Petition for Advisory Opinion was received from Buehler Moving
Ltd., 15 Smith Avenue, Troy, New York 12180.
Petitioner is a newly formed company which provides in-house moving, using carts to move
property within a building, including the moving of property from floor to floor.
Petitioner inquires as to whether it is subject to the Franchise Tax on Business Corporations
imposed under Article 9-A of the Tax Law, or the taxes imposed, under sections 183 and 184 of the
Tax Law, on transportation companies. Petitioner also inquires as to whether it is required to collect
sales tax on its receipts from the services it provides.
Sections 183 and 184 of the Tax Law provide for the imposition of taxes upon, among others,
every corporation principally engaged in the conduct of a trucking or other transportation business.
Article 9-A of the Tax Law imposes a franchise tax upon every corporation doing business in this
State and not otherwise taxable under any other article of Tax Law.
Inasmuch as Petitioner is engaged solely in the activity of moving property within the
confines of a building, it is not engaged in a trucking or transportation business, within the meaning
and intent of sections 183 and 184 of the Tax Law. It is accordingly subject to tax under Article 9-A
of the Tax Law, which imposes the Franchise Tax on Business Corporations. Returns of tax under
Article 9-A are to be made on Form CT-3.
Section 1105(c) of the Tax Law, contained in Article 28 thereof, imposes a sales tax on the
receipts from a number of specified services. Inasmuch as the service provided by Petitioner is not
among the services there enumerated, Petitioner is not required to collect sales tax on its receipts.

DATED: February 4, 1982

JAMES H. TULLY., COMMISSIONER
TP-8 (4/80)

s/LOUIS ETLINGER
Deputy Director
Technical Services Bureau

LOUIS M. JACOBSON, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR