Friday, June 19, 2009

New York State Tax Changes

Recent changes at the New York State Department of Taxation and Finance include those below, as well as others.

The Metropolitan Commuter Transportation Mobility Tax is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD consists of the five boroughs of New York City and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester. For more information, see the Metropolitan Commuter Transportation Mobility Tax web page and the newly issued TSB-M that explains this tax.

Sales Tax Imposed on Certain Transportation Services - Effective June 1, 2009, New York State and local sales tax will apply to transportation services provided using limousines, black cars, and certain other motor vehicles with a driver. However, the sales tax will not apply to taxicab and bus services, scheduled public transportation services, services provided in connection with funerals, or interstate services.

Renewal of Sales Tax Certificate of Authority - NYS businesses will receive a notification letter from the Department of Taxation of Finance when you are required to renew the sales tax Certificate of Authority. Renewal cannot be applied for until the letter is received. All registered sales tax vendors will be randomly selected for renewal on a staggered schedule through 2012.

Cigarette Registration Fee (p.8) - Part C, Section 125, of Chapter 58 of the Laws of 2009 increases the annual application fees and related civil penalties for cigarette and tobacco product retail dealers and vending machine operators. The application fee for retail dealers will increase from $100 to:
• $1,000 for each retail location with annual gross sales of less than $1 million;
• $2,500 for each retail location with annual gross sales of at least $1 million but less than $10 million; and
• $5,000 for each retail location with annual gross sales of at least $10 million.

For more upcoming changes, go to the department's Online Tax Center.

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