New York SBDC Research Network

From the New York State Department of Taxation and Finance Whether sales of a particular good or service are taxable may depend on many factors. Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt. The term tangible personal property means any kind of physical personal property that has a material existence and is perceptible to the human senses (in other words, something you can see and touch). Sales of services are generally exempt from New York sales tax unless they are specifically taxable You should not collect sales tax on exempt sales that do not require an exemption document. However, for sales that require an exemption document, you must collect sales tax unless you receive a properly completed exemption document from the purchaser.

This publication is a comprehensive guide to New York State and local sales and use taxes for businesses that sell taxable tangible personal property, perform taxable services, receive admission charges, or operate a hotel or motel, and restaurants, taverns, or other establishments that sell food and drink . For basic, easy-to-understand explanations of particular sales tax topics, see the sales tax bulletins, available on the Tax Department’s Web site at www.tax.ny.gov. The Tax Department has issued a number of these sales tax bulletins and continue to add new bulletins on a regular basis. It is the department’s goal that all taxpayers meet their sales tax obligations and pay the correct amount of tax due. If your business makes sales of property or services that are subject to sales tax, it must register for sales tax purposes and obtain a Certificate of Authority. You should thoroughly read all the information contained in this publication so that you become aware of your obliga...

When you purchase taxable property or services from a seller (vendor) located in New York State and take delivery in New York State, the vendor should collect state and local sales tax due and send it to the Tax Department. However, you are responsible for paying the tax directly to the Tax Department under the following circumstances: Deliveries into New York State without collection of sales tax You owe state and local sales tax if you purchase taxable property or a taxable service that is delivered to you in New York State without payment of New York State and local tax to the seller, such as through the Internet, by catalog, from television shopping channels, or on an Indian reservation. Purchases of property or services outside New York State with subsequent use in New York State You may also owe New York State and local use tax if you are a resident of New York State at the time you purchase any of the following outside New York State: • property you bring into New...

In certain instances, section 5-a of the Tax Law requires businesses that are awarded contracts with New York State to certify that they are registered to collect New York State and local sales and use taxes (sales tax) on sales delivered to locations within New York. The purpose of section 5-a is to ensure that contractors do not get state work unless they, their affiliates, and their subcontractors making sales of tangible personal property or taxable services are registered to collect New York State’s sales tax. This means that certain businesses, including in some cases out-of-state businesses not currently registered to collect New York State sales taxes, will need to register for New York State sales tax purposes. This bulletin explains the general rules related to the certification requirements for contractors and their affiliates and subcontractors. For more detailed information on the contractor certification requirements imposed under section 5-a of the Tax Law, see Publ...

The New York State Department of Taxation and Finance has`announced that it published a new Web page regarding identity theft. The new Web page spells out what to do next if you think you may be the victim of identity theft. It also provides several links to information, such as the Internal Revenue Service's (IRS) Taxpayer Guide to Identity Theft, that help taxpayers make identity protection part of their regular routine. Identity theft is one of the fastest growing economic crimes in the nation, but taxpayers often don't realize their information has been stolen until they receive an unexpected notice about their tax account from the Tax Department or the IRS. Once identity theft is reported to the Tax Department, the agency can correct an account by removing any fraudulent returns from the record, and it can cancel bills issued that are related to the fraud. To head-off any additional suspicious activity, the Department will devote extra attention to future return...

From the New York State Department of Taxation and Finance Office of Counsel Advisory Opinion Unit The Department of Taxation and Finance received a Petition for Advisory Opinion from [the name and address redacted]. Petitioner asks whether its membership application fee and dues for business entities and individuals to become and remain members of Petitioner are subject to sales tax. Based on the facts presented, Petitioner’s membership application fee and dues are not dues of a social or athletic club and are not subject to State or local sales tax imposed by section 1105(f)(2) of the Tax Law.

New this year, you could get a tax break when installing solar energy equipment in a commercial building, the New York State Department of Taxation and Finance announced . Beginning January 1, 2013, the State's 4% sales tax won't be charged on the sale or installation of commercial solar energy systems equipment. The exemption also applies to the 3/8% sales tax imposed in the Metropolitan Commuter Transportation District. The new law also allows cities and counties, including New York City, to provide a similar exemption from their local sales taxes.

ADP Small Business Services division offered tips and reminders to small business owners , their accountants and other advisors to get a head start on year-end tax preparation to help avoid delays, streamline the tax filing process and improve outcomes. The New York State Tax Department offers online demos about enhanced Sales Tax Web File . The four demos cover a variety of filing scenarios and you may view them at your convenience.

The New York State Department of Taxation and Finance said today it will extend its call center hours in order to assist businesses and tax professionals as they file sales tax returns using a new, online sales tax system. The enhanced, more user-friendly system was launched in September, but for nearly 250,000 users, December will be their first time using the new system to file returns. The filing deadline is December 20. From December 13 through December 20, 2012, the call center hours are: Weekdays - 8:30 a.m. to 7:00 p.m. Saturday, December 15 - 9:00 a.m. to 1:00 p.m. The call center's phone number is 518-485-2889. View the entire document .

If you're starting a new business, or purchasing an existing one, there's a publication you might want to add to your reading list - the http://www.tax.ny.gov/press/rel/2012/pub20112812.htm Tax Guide for New Businesses (Publication 20) from the New York State Department of Taxation and Finance Connect with the Department on Twitter and YouTube .

The New York State Department of Taxation and Finance has updated its free Voluntary Disclosure Program pamphlet (Publication 200) . The program, highly successful since its launch in 2008, has a simple goal: To help individuals and businesses with state tax debts from prior year filings meet their tax obligations. The pamphlet tells you who is eligible and how to start the application process online .

Publication130-F (7/12) The Department of Taxation and Finance’s purpose in conducting an audit is to verify that you paid the correct tax. During the audit, you may be required to provide the auditor with whatever records are necessary to verify the information you provided on your return. Depending on the type of return being audited, this may entail a review of your income, receipts, expenses, credits, and other business records.

When a taxable product or service is sold, any charges for shipping or delivery that the seller includes on the bill become part of the receipt subject to sales tax. If the product or service being sold is not taxable, any charge to the customer for shipping or delivery is also not taxable. This also applies when the customer gives the seller a valid resale certificate or other exemption document. When taxable and nontaxable products or services are combined into a single charge on one bill, the entire bill is taxable, including any shipping or delivery charges. When charges for taxable and nontaxable products or services are listed separately on a bill, sales tax is not collected on the nontaxable charges. However: If only one charge for shipping or delivery is listed on the bill, the entire delivery charge is treated as part of the taxable portion of the bill. If the charge for shipping or delivery is fairly allocated between the taxable and nontaxable products of the...

Sales of eligible clothing and footwear for less than $110 are exempt from state sales tax  Beginning April 1, 2012, the New York State sales tax clothing exemption is restored to the original less-than-$110 threshold. Sales of eligible clothing and footwear costing less than $110 per item or pair are exempt from the state's 4% sales tax and local tax in those localities that enacted the exemption. These sales are only exempt from the ⅜% Metropolitan Commuter Transportation District (MCTD) tax in those localities within the MCTD that enacted the exemption from their local tax.

The New York State Task Force on Regulation of Tax Return Preparers, drawn from a diverse group of tax professionals, business, government and academic leaders, has issued its report. The report , required by legislation, recommends a set of minimum qualifications and a comprehensive set of standards for all tax return preparers.

The New York State Department of Taxation and Finance announced that a record number of businesses have moved to the Web for all aspects of filing state taxes .

From one of those nifty tax digests I receive regularly: Individuals seeking a fresh start from overwhelming tax debts may now be eligible for relief under a new hardship provision in the NYS Department of Taxation and Finance's Offer in Compromise Program. The new provision enables them to accept offers where collection in full would cause undue economic hardship. Previously, the program was only available in cases of insolvency or bankruptcy. For more information, see the Offer in Compromise Reform web page and this PDF document .

A recent State appellate court ruling upheld New York law requiring Internet retailers to collect sales tax on sales to New York customers. To view the entire document please visit HERE .

The New York State Department of Taxation and Finance today announced that a federal court judge has signed a temporary restraining order barring the furlough of state employees. This means that the previously-announced May 21 closure of the Department’s call center will not occur. The call center will be fully staffed and Department employees will not be furloughed on that day.

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 fun...