When Con Edison leases part of its distribution system to a county public power agency and acts as that agency's billing/collection operator for discounted 'preference power,' which pieces of the arrangement create taxable receipts for Con Edison itself under the sales tax and the utility franchise/gross-receipts taxes?

Plain-English summary

This is a twin ruling to TSB-A-87(2)C/(5)S, issued the same day (January 12, 1987) on the identical facts and reasoning -- but to the other party to the transaction. Consolidated Edison ("Con Edison") filed its own Petition for Advisory Opinion (No. Z860520B) about the same Lease and Operating Agreement that the County of Westchester Public Utility Service Agency ("Utility") separately petitioned about (No. Z860520C, decided as 87(2)C/(5)S). Both petitions were received the same day, May 20, 1986, and the Department issued near-identical advisory opinions to each side of the deal.

The underlying arrangement: Westchester County created Utility to buy discounted hydroelectric "preference power" from the New York Power Authority and arrange for its distribution to Utility's own customers. Because Utility has no distribution network, it leased an undivided interest in Con Edison's distribution system and made Con Edison its "operator" -- handling all billing and collection from Utility's customers, while Con Edison retains exclusive control over its own system. Con Edison charges Utility a "rental" pegged to what Con Edison would have billed at its own tariff rates (minus its own fuel/power costs), and separately remits to Utility the "funds collected for preference power" (customer billings net of Con Edison's costs and an uncollectible-accounts adjustment). The Petition raised four tax questions: sales/use tax, the utility franchise tax (section 186), the utility gross-receipts tax (section 186-a), and local City/Village utility taxes.

On sales tax, Utility's own purchases -- including its use of Con Edison's distribution system -- are treated as an exempt governmental purchase of a service (not a taxable lease), and Con Edison's billing/collection services aren't separately taxed either. But Utility's own retail resale of the power to end customers IS taxable, just as any private utility's sale would be, and Con Edison (as Utility's billing agent) shares the obligation to collect that tax and obtain exemption certificates.

On the franchise taxes, Utility itself owes nothing under section 186 or 186-a (both exclude municipalities). But Con Edison's OWN rental/service fee from Utility is Con Edison's taxable gross earnings under section 186 and gross income under section 186-a, with the temporary MTA surcharges (sections 186-b/186-c) applying proportionally to the extent Con Edison operates inside the Metropolitan Commuter Transportation District. The Department again held that, despite being called a "rental," Con Edison's arrangement is actually a SERVICE for tax purposes because Con Edison -- not Utility -- retains exclusive possession and control of the distribution system; that characterization is what lets the pass-through "funds collected for preference power" escape being counted as Con Edison's own receipt, while any surplus Con Edison keeps beyond its actual costs does count. As in the companion ruling, the Department declined entirely to address the separate City/Village utility taxes, since it doesn't administer those statutes.

What this means for you

Utilities acting as billing/distribution "operators" for a government power agency

Your own fee for providing the distribution service and handling billing is your own taxable receipt under both section 186 and section 186-a -- but pure pass-through customer payments you collect on the government agency's behalf and remit in full are NOT your receipts, as long as you're genuinely acting as agent and not retaining the funds.

When both sides of a transaction seek advisory opinions

A private company and a government counterparty to the same contract can each petition the Department separately about their own tax consequences -- here Con Edison and Westchester's Utility filed companion petitions the same day and received companion rulings, letting each party confirm its own tax position under the identical fact pattern.

Determining whether an arrangement is a "rental" or a "service" for utility tax purposes

Labeling an arrangement a "lease" or "rental" doesn't control -- what matters is who has actual POSSESSION AND CONTROL of the property. If the utility retains exclusive control over its own distribution system (as Con Edison did here), the arrangement is treated as a service, not a rental, which affects how associated receipts are characterized.

Common questions

Q: Is Con Edison's rental/operator fee from Utility taxable to Con Edison?
A: Yes -- it's Con Edison's own receipt for services performed (using its distribution system and handling billing/collection), fully includible in Con Edison's gross earnings/income under both section 186 and section 186-a.

Q: What happens to the money Con Edison collects from Utility's customers for the power itself?
A: The portion Con Edison passes through to Utility as "funds collected for preference power" isn't Con Edison's own receipt; but any amount collected and NOT passed through becomes Con Edison's taxable receipt.

Q: Why are there two nearly identical rulings, 87(1)C/(4)S and 87(2)C/(5)S?
A: They're companion opinions issued the same day on the same transaction -- this one answers Con Edison's own petition (Z860520B), while 87(2)C/(5)S answers the County Utility Agency's separate petition (Z860520C) about the same Lease and Operating Agreement.

Q: Can this ruling be used to determine the local City/Village utility tax treatment?
A: No -- the Department expressly declined to address General City Law § 20-b or Village Law § 5-530, since it doesn't administer those taxes.

Q: Can another utility rely on this specific ruling?
A: No. It binds the Department only for this petitioner's specific facts and can't be relied upon by other utilities, even ones with similar distribution/billing-agent arrangements.

Citations and references

Statutes and regulations:

• Tax Law § 1105, § 1110, § 1116(a) (sales/use tax and governmental exemption)
• Sales and Use Tax Regulations § 529.2, § 527.2(e), § 527.7(d)(3)
• Tax Law § 1101(b)(8)(ii) (agent-as-vendor)
• Tax Law § 186, § 186-a, § 186-b, § 186-c (utility franchise/receipts taxes and MTA surcharges)
• General City Law § 20-b; Village Law § 5-530 (outside Department's jurisdiction)
• 1946 Op. Atty. Gen. 326; New York City Energy Office, TSB-A-85(23)C, (49)S

Related rulings:

• TSB-A-87(2)C/(5)S -- the twin companion ruling, same transaction, filed by the County Utility Agency itself
• TSB-A-86(22)C, (49)S -- direct 1986 precedent, same doctrine for a New York City preference-power arrangement
• TSB-A-85(23)C, (49)S -- the original 1985 contract-carriage precedent underlying this whole doctrine chain
• TSB-A-86(22)C/(49)S -- the direct precedent, applying the same doctrine to a nearly identical Con Edison/New York City preference-power arrangement about 13 months earlier

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/corporation_ao_1987.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/multitax/a87_1c_4s.pdf

Original ruling text

New York State Department of Taxation -1and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-87 (1) C
Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

STATE OF NEW YORK
STATE TAX COMMISSION
ADVISORY OPINION

PETITION NO. Z860520B

On May 20, 1986, a Petition for Advisory Opinion was received from Consolidated
Edison Company of New York, Inc., 4 Irving Place, New York, New York 10003.
The Petition raises four issues regarding tax consequences with respect to transactions
arising from a Lease and Operating Agreement between Consolidated Edison Company of New
York and the County of Westchester Public Utility Service Agency whereby the County of
Westchester Public Utility Service Agency arranges for the distribution and sale, through
Consolidated Edison Company of New York facilities, of preference power it purchases from the
New York State Power Authority. These issues involve the (1) Sales and Use Tax; (2) Franchise
Tax on Utility Companies; (3) New York State Tax on the Furnishing of Utility Services; and (4)
Local Tax on the Furnishing of Utility Services.
The County of Westchester has established the County of Westchester Public Utility
Service Agency ("Utility"), which, among other things, is authorized to purchase hydroelectric
power and energy ("preference power") from the Power Authority of the State of New York
("PASNY") and from other entities, and must make the necessary arrangements for the
distribution of such preference power to Utility's customers. Utility has entered into a lease and
operating agreement with Consolidated Edison Company of New York "(Con Edison") for the
distribution of preference power to Utility's customers located within the service area of Con
Edison. Utility will determine who is to receive the preference power. Con Edison will act as
Utility's operator in the sale of such power. Con Edison will do all billing and collection.
Con Edison will lease to Utility an undivided interest in Con Edison's distribution system,
to the extent required to sell and distribute preference power to Utility's customers. Con Edison
has exclusive control of its entire system, including all matters relating to the design,
construction, expansion, operation, use, maintenance and retirement of the system. Con Edison
will indemnify and hold Utility harmless from and against any and all liability, suits, claims,
demands, actions, judgments, costs and expenses arising from Con Edison's exercise of exclusive
control of its system.
Con Edison will make arrangements with other utilities, if available, for transmission of
preference power to Con Edison's system, and where feasible, Utility will contract with and pay
such other utilities directly for such transmission.
The rental is calculated on the basis of kilowatt-hours of preference power sold by, and
distributed on behalf of Utility during each billing period. The amount of the rental is equal to the
charges which would have been billed at Con Edison's applicable tariffs, including the fuel
adjustment clause less Con Edison's fuel and purchased power costs reflected in such tariffs.
RODERICK G. W. CHU, COMMISSIONER
GABRIEL B. DiCERBO, DEPUTY COMMISSIONER
FRANK J. PUCCIA, DIRECTOR
TP-8 (3/83)

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TSB-A-87 (1) C
Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

Utility's rates are fixed to provide revenue in an amount not less than necessary to recover
the following costs and expenses: the actual cost to Utility for the purchase, transmission,
distribution and delivery including the rental paid by Utility; the actual expenses necessary for
administration of Utility; and any other costs or charges that Utility incurs or has an obligation to
pay under the agreement.
The "funds collected for preference power" is the amount billed at Utility's rates, adjusted
to reflect amounts uncollected. The adjustment is computed as follows:
1.

Subtract the rental from the gross amount billed.

2.

Multiply the remainder by the provision for uncollectible accounts approved by
the PSC in the most recent rate case.

Con Edison will forward to Utility all "funds collected for preference power" after
deducting the rental amount, any transmission cost incurred by Con Edison, and any additional
costs actually incurred by Con Edison. In the event the funds collected for preference power are
less than the deductions, Con Edison will bill Utility for the deficiency.
ISSUE I - Sales and Use Tax
Questions Presented
(a) Is the County of Westchester Public Utility Service Agency, which is
an agency, instrumentality or political subdivision of New York State as defined
in section 1116 of the Tax Law, exempt from the imposition of sales and use taxes
as imposed by sections 1105 and 1110 of the Tax Law?
Article 28 of the New York State Sales and Use Tax Law provides in section 1116(a) that
any sale by or to the following and any use by any of the following shall not be subject to the
sales and compensating use taxes imposed under such Article:
"(1) The state of New York, or any of its agencies, instrumentalities, public corporations.
. . or political subdivisions where it is the purchaser, user or consumer, or where it is the vendor
of services or of property of a kind not ordinarily sold by private persons".
Regulation 529.2, subdivision (a), offers the following definitions:
(1) Agencies and instrumentalities of the State as used in this section means any
authority, commission or independent board created by an act of the Legislature for a
public purpose.

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Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

(2) A public corporation as used in this section means any corporation created by an act
of the Legislature for a public purpose or pursuant to an agreement or compact with
another state or Canada.
Subdivision (b)(2) provides that "governmental entities [as defined above] as purchasers,
users, consumers, occupants or patrons must exercise their right to exemption through the
issuance of governmental purchase orders or the appropriate exemption document".
Accordingly, upon issuing a governmental purchase order to its vendors, Utility is not
required to pay sales or use tax on property or services purchased for its own use or consumption.
(b) Is the sale of preference power by PASNY to Utility exempt from
sales taxes?
Section 1105(b) of the Tax Law imposes tax on the receipts from every sale, other than
sales for resale, of electricity and electric service of whatever nature.
Regulation 527.2(e) provides that the purchaser of utility services intended for resale
must furnish its supplier with a Resale Certificate (Form ST-120).
Consequently, the sale of preference power by PASNY to Utility is exempt from tax if
Utility furnishes a Resale Certificate to PASNY when purchasing preference power which will
be resold.
(c) Are charges to Utility for the rental of Con Edison's distribution
system, and for Con Edison's services of billing and collecting monies,
taxable?
Although the utilization of Con Edison's transmission system in the distribution of
preference power is viewed as a lease transaction by the Petitioner, for sales tax purposes it is
considered the purchase of a service by a governmental entity which is exempt from taxation
under Tax Law 1116(a)(1), supra. Furthermore, Con Edison's charges for billing and collecting
monies from Utility's customers are exempt because the Tax Law imposes no sales tax on such
services.
(d) Is the sale of preference power by Utility to the ultimate consumer
subject to sales taxes?
Section 529.2(c) of the Sales and Use Tax Regulations relating to governmental entities
as vendors, states in part that "(2) [s]ales by New York State governmental entities of tangible
personal property or services of a kind which are ordinarily sold by private persons . . . are
subject to the sales and use tax. . . .

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TSB-A-87 (1) C
Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

Example 6: A municipality sells electricity to its residents. The sale is taxable."
Regulation 527.7(d)(3) provides that "[m]unicipalities which provide services subject to
tax are required to register as a vendor with the [sales tax] bureau and collect the appropriate tax
which shall be remitted with a timely filed return".
In the Lease and Operating Agreement, Con Edison agrees to perform, as Utility's
operator, the services of selling, billing, and collecting monies arising from the distribution and
sale of preference power. In this regard it must be noted that the Tax Law, in defining the term
"vendor", adds the following provisions:

when in the opinion of the tax commission it is necessary for the
efficient administration of this article to treat any salesman,
representative, peddler or canvasser as the agent of the vendor,
distributor, supervisor or employer under whom he operates or
from whom he obtains tangible personal property sold by him or
for whom he solicits business, the tax commission may, in its
discretion, treat such agent as the vendor jointly responsible with
his principal, distributor, supervisor or employer for the collection
and payment over of the tax. (Tax Law, 1101(b)(8)(ii)).
Consequently, Con Edison and Utility must share the obligation for the proper collection of
the tax including obtaining the proper certification from customers claiming exemption from tax.
Exempt retail purchases of electricity to be used exclusively for non-residential purposes, must be
supported by one of the following documents:
Resale Certificate, Form ST-120,
Exempt Use Certificate, Form ST-121,
Exempt Organization Certificate, Form 119.1,
Direct Payment Permit, Form AU-297, or
Governmental Purchase Order.
No certificate is required to claim the exemption from statewide sales tax provided under
Tax Law 1105-A for purchases of electric power solely for residential use. This exemption, both
from statewide tax and certification, extends to billings (in a lump sum or based on a single meter)
combining both residential and non-residential power usage, if the non-residential use does not
exceed 25 percent. When the portion representing residential usage is less than 75 percent of the
total bill, the purchaser must file Form TP-385, Certification of Residential Use.
Technical Services Bureau Memorandum TSB-M-78(7)S, Reduction in Rate on Certain
Energy Sources and Services, should be reviewed for additional information regarding the sale of
utility services.

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TSB-A-87 (1) C
Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

ISSUE II - Franchise Tax on Utility Companies
Questions Presented
(a)

Is the County of Westchester Public Utility Service Agency subject
to the tax imposed under section 186 of the Tax Law?

Section 186 of the Tax Law imposes a franchise tax on "Every corporation, joint-stock
company or association... formed for or principally engaged in the business of supplying...
electricity...."
Since Utility is a municipality, it is not a corporation, joint-stock company or association
formed for or principally engaged in business that would subject it to tax under section 186 of the
Tax Law.
(b)
Are the rentals received by Con Edison from Utility for the use of
its distribution system and for its services in billing and collecting monies
as Utility's operator gross earnings to Con Edison subject to the tax
imposed by section 186 of the Tax Law?
(c)
Do the monies collected by Con Edison from Utility's customers as
Utility's operator for the sale of preference power constitute gross earnings
to Con Edison subject to the tax imposed by section 186 of the Tax Law?
The tax imposed by section 186 of the Tax Law is based, in part, upon gross earnings
from all sources within New York State. Such section defines the term "gross earnings" as all
receipts from the employment of capital without any deduction.
Accordingly, the rental Con Edison receives from Utility for the use of its distribution
system and for its services in billing and collecting monies as Utility's operator are receipts of
Con Edison for services performed and are included in Con Edison's gross earnings. The funds
collected for preference power that are collected by Con Edison, as Utility's operator, from
Utility's customers for the sale of preference power do not constitute gross earnings of Con
Edison. However, any amount that is not included in "funds collected for preference power" that
is collected by Con Edison, as Utility's operator, from Utility's customers for the sale of
preference power is a receipt of Con Edison and is included in Con Edison's gross earnings.
(d)
Are such rentals and preference power sales receipts collected by
Con Edison from Utility's customers as Utility's operator subject to the temporary
metropolitan transportation business tax surcharge imposed under section 186-b
of the Tax Law?

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TSB-A-87 (1) C
Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

Section 186-b of the Tax Law provides that the temporary metropolitan transportation
business tax surcharge on utilities is in addition to the tax imposed under section 186 of the Tax
Law and, for the taxable years such tax surcharge is applicable, the rate of the tax surcharge is
applied to the tax imposed under section 186 or to that portion of the tax imposed under section
186 which is attributable to the taxpayer's business activity carried on within the Metropolitan
Commuter Transportation District ("MCTD"). The portion of the tax attributable to business
activity carried on within the MCTD shall be determined by multiplying the tax imposed under
section 186 by the ratio of the taxpayer's gross earnings from all sources within the MCTD to its
gross earnings from all sources within New York State.
Consequently, for the taxable years the temporary metropolitan transportation business
tax surcharge on utilities under section 186-b of the Tax Law is in effect, if Con Edison has
business activities both within and without the MCTD it must determine its gross earnings from
within the MCTD as well as its gross earnings from within New York State. Con Edison's gross
earnings from within the MCTD include the rental received from Utility for the use of its
distribution system and for its services in billing and collecting monies as Utility's operator, and
any amount that is collected from Utility's customers, as Utility's operator for the sale of
preference power, that is not included in "funds collected for preference power".

ISSUE III - New York State Tax on the Furnishing of Utility Services
Questions Presented
(a)
Is the County of Westchester Public Utility Service Agency subject
to the tax imposed under section 186-a of the Tax Law?
Section 186-a of the Tax Law provides:
. . . [A] tax equal to 3% of its gross income is imposed on every utility doing business in New
York State which is subject to the supervision of the State Department of Public Service. . . .
. . . . A tax equal to 3% of its gross operating income is imposed on every other utility doing
business in New York State. . .
. . . . The word "utility" includes every person subject to the supervision of the State Department
of Public Service,. . . . also every person who sells electricity etc. delivered through mains, pipes
or wires, or furnishes electric etc. by means of mains, pipes or wires, regardless of whether such
activities are the main business of such person or are only incidental thereto. . ..
. . . . The word "person" means persons, corporations, companies, associations, joint-stock
associations, etc. . . . except New York State, municipalities, political and civil subdivisions of
the State or municipality. . .

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Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

Utility is a municipality and as such is not subject to tax imposed under section 186-a of
the Tax Law.
(b)
Is the rental received by Con Edison from Utility for the use of its
distribution system and for its services as Utility's operator in billing and
collecting monies from Utility's customers for the sale of preference power gross
income to Con Edison subject to tax under section 186-a of the Tax Law?
(c)
Do the monies collected by Con Edison from Utility's customers as
Utility's operator for the sale of preference power constitute gross income to Con
Edison subject to tax under section 186-a of the Tax Law?
Section 186-a of the Tax Law provides:
. . . . The words "gross income" mean and include receipts received in or by reason of any sale,
conditional, or otherwise,. . . . made or service rendered for ultimate consumption or use by the
purchaser in this State, . . . .
. . . . Also profit from any transaction (except for sales for resale and rentals) within this State
whatsoever. . . .
Generally, "sales made and services rendered for ultimate consumption or use within this
State" means sales of gas, electricity, steam, water, refrigeration, telephony or telegraph when
delivered through mains, pipes or wires, sale of merchandise which are part of stock in trade,
charges for transportation of passengers and/or goods, toll charges and service charges such as
charges for installation and moving of telephones and for the delivery of messages. Thus, "sales
made and services rendered" has been defined to include sales and services which are the
principal business of the taxpayer and which are made to customers.
In order to be included under the heading "profit from any other transaction whatsoever,
except the profit on sales for resale and rentals," the profits must be from labor not performed in
the conduct of the taxpayer's principal business and from the sales of materials and supplies,
other than such as are purchased for resale. Isolated transactions also come under this item such
as when a water company, which does not make a practice of furnishing this service, lays pipes
and mains for a customer with title vesting in such customer.
In 1946, the Attorney-General of the State of New York rendered an opinion relating to
the definition of "rental" for purposes of section 186-a of the Tax Law. In that opinion, the
Attorney-General approved a proposed ruling by the Tax Department that equipment for street
lighting and for the control of such lighting transferred from a utility company to the City of New
York, where the equipment was clearly in the control of the City, constituted a rental. (1946 Op.
Atty. Gen. 326) However, in that opinion, the Attorney-General noted that: "Nothing in the
history or language of the statute indicates that amounts which are actually charges for service
may be excluded from gross income by merely calling them rentals."

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Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

The attribute that distinguishes a rental from a service is that in a rental situation the
lessee has possession and efficient control of the rented equipment or rented real property. Since
Con Edison has exclusive control of its entire distribution system, including all matters relating
to the design, construction, expansion, operation, use, maintenance and retirement of the system,
Con Edison's lease to Utility of an undivided interest in Con Edison's distribution system, to the
extent required to sell and distribute preference power to Utility's customers, is not a rental but
rather a service being performed by Con Edison.
Accordingly, the funds collected for preference power that are collected by Con Edison,
as Utility's operator, from Utility's customers for the sale of preference power do not constitute
receipts of Con Edison. However, any amount that is not included in "funds collected for
preference power" that is collected by Con Edison, as Utility's operator, from Utility's customers
for the sale of preference power is a receipt for services performed by Con Edison.
The services that Con Edison performs for Utility are not services "for ultimate
consumption or use by the purchaser", within the meaning intended, so that the total "receipts"
for such services do not constitute gross income as defined. Such services rendered are
incidental to the conduct of Con Edison's principal business. As such, the services rendered are
transactions taxable on the profits derived therefrom. To the extent that such services are
rendered on behalf of New York State customers, such profits would be subject to tax in their
entirety. New York City Energy Office, State Tax Commission Advisory Opinion, October 16,
1985, TSB-A-85(23)C.
(d)
Is such rental and preference power sales receipts collected by Con
Edison from Utility's customers as Utility's operator subject to the tax surcharge
imposed by section 186-c of the Tax Law?
Section 186-c of the Tax Law provides that the temporary metropolitan transportation
business tax surcharge on utility services is in addition to the tax imposed under section 186-a of
the Tax Law and, for the taxable years such tax surcharge is applicable, the rate of the tax surcharge
is applied to the tax imposed under section 186-a or to that portion of the tax imposed under section
186-a which is attributable to the taxpayer's business activity carried on within the MCTD. The
portion of the tax attributable to business activity carried on within the MCTD shall be determined
by multiplying the tax imposed under section 186-a by the ratio of the taxpayer's gross income from
all sources within the MCTD to its gross income from all sources within New York State.
Consequently, for the taxable years the temporary metropolitan transportation business tax
surcharge on utility services under section 186-c of the Tax Law is in effect, if Con Edison has
business activities both within and without the MCTD it must determine its gross income from
within the MCTD as well as its gross income from within New York State. Con Edison's gross
income from within the MCTD includes the rental received from Utility for the use of its distri­
bution system and for its services in billing and collecting monies as Utility's operator and any
amount that is collected from Utility's customers, as Utility's operator for the sale of preference
power, that is not included in "funds collected for preference power".

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Corporation Tax
TSB-A-87 (4) S
Sales Tax
January 12, 1987

ISSUE IV - Local Tax on the Furnishing of Utility Services
Questions Presented
(a) Is the County of Westchester Public Utility Service Agency subject to
the taxes imposed by section 20-b of the General City Law and section 5-530 of
the Village Law?
(b) Is the rental received by Con Edison from Utility for the use of its
distribution system and for its services as Utility's operator in billing and
collecting monies from Utility's customers for the sale of preference power gross
income to Con Edison subject to tax under section 20-b of the General City Law
and section 5-530 of the Village Law?
(c) Do the monies collected by Con Edison from Utility's customers as
Utility's operator for the sale of preference power constitute gross income to Con
Edison subject to tax under section 20-b of the General City Law and section 5­
530 of the Village Law?
Section 171, Twenty-fourth of the Tax Law provides that the State Tax
Commission shall render advisory opinions only with respect to taxes that are
administered by the State Tax Commission.
Accordingly, the State Tax Commission may not render an advisory opinion with
respect to tax consequences under section 20-b of the General City Law and section 5-530
of the Village Law since the State Tax Commission does not administer such taxes.

DATED: January 12, 1987

s/FRANK J. PUCCIA
Director
Technical Services Bureau

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.