New York SBDC Research Network

From Suzanne Reusch, Taxpayer Service Specialist The overall goal of the NYS Tax Department is for all taxpayers to voluntarily pay the correct amount of tax, at the right time. The New York State Tax Department will partner with New York’s businesses to help them comply with their tax responsibilities in the easiest and most efficient way. The New York State Tax Department features a growing list of electronic services that promote self-service, making it easier for customers to conduct business with the department at their convenience. Online Services with NYS Tax Recommend that all businesses sign up for subscription services to: • Obtain new postings of Tax specific technical guidance documents • Receive press releases and News • Each business should create an online service account: • File and pay taxes (sales tax mandated) • Respond to department notices • Change your business address/phone number • Sign up for E-mail alerts to receive account email alerts abou

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.

Collecting sales tax is one of the most confusing aspects of transacting business – online and off! Whether you’re starting a new business or expanding into e-commerce, here’s what you need to know about your sales tax obligations. Read More

"Each year, schools, school groups, PTAs, PTOs, youth sports leagues and other non-profit organizations raise nearly $2 billion by selling merchandise to the public (product fundraising). This web site is designed to assist these non-profit organizations and fundraising companies in determining the sales and use tax implications, if any, resulting from product fundraising drives. The goal is to provide a publicly-accessible clearinghouse of information about the States' provisions, practices and procedures related to the transactional taxation of fundraising sales, products and organizations. Source of the Information The information on this site was provided by the state revenue departments through a survey distributed by the Multistate Tax Commission.... States are asked periodically to review this information for accuracy. The site reflects updated information as provided by individual states. This site contains information from only those states that affirmatively in

From the state tax department: Many businesses and tax practitioners used Sales Tax Web File for the first time in June 2011, in response to the recent mandate to web file quarterly returns. Close to 70% of the sales tax returns due on June 20 were filed electronically, a significant increase over 20% one year ago. Some sales tax vendors and practitioners experienced difficulties filing or reaching a representative to assist them with the new web filing requirements. The tax folks apologize for the inconvenience. They are training additional staff to make sure that your calls are answered promptly in the future. Although they'd prefer that all taxpayers use Sales Tax Web File, they know that some can't. Taxpayers who prepare their own returns without computers or who don't have broadband access aren't required to file online.

From NYS sales tax guidance This memorandum describes the procedures that sellers should follow to properly disclose to customers that certain discounts received through store loyalty cards are manufacturer's discounts. Many businesses use store loyalty cards to offer their customers incentives to shop frequently at their stores. These incentives often include discounts that are activated by scanning the customer's loyalty card at the cash register. When these loyalty card discounts are given and the discounted item is subject to sales tax, the amount subject to sales tax generally depends on whether the discount reflects a manufacturer's discount or a store discount. If the store is reimbursed for the amount of the discount by the manufacturer, distributor or other third party, it is a manufacturer's discount. If the store receives no reimbursement from a third party for the amount of the discount given, it is a store discount. Generally, when a customer purch

Here's a numerical listing by publication number of documents addressing particular topics of interest to taxpayers From that list, A Guide to Sales Tax in New York State (PDF) Also, sales tax for specific industries .

Inspired by the front page story in today's Albany Times Union, Food ready to eat on a plate? It's taxable In New York State: Food Item is/// Tax Exempt if///Taxable if Cold cuts /// sliced and sold by weight ///arranged on food platter Pizza /// frozen, refrigerated, unheated ///heated Hot dog /// refrigerated (packaged) ///served on a bun or heated Fish /// sold unheated ///heated or served in a sandwich Bread /// sold by the loaf (whole or sliced) ///served with a bowl of soup Bananas /// sold whole, individually or by the bunch ///peeled or sliced as part of a fruit platter Bagel /// sold by quantity (whole or sliced) ///toasted, buttered, or with cream cheese Salad mix /// packaged in bag ///from a self-serve salad bar or prepared and arranged on a plate Ice cream /// sold in a container by weight (including hand-packed pints, quarts, etc.) ///made-to-order cone or sundae Macaroni salad /// packaged and sold by weight ///served with a sandwich, served in a tray as a side

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 exemption from New York State sales tax for clothing and footwear under $110 has been eliminated, for the period October 1, 2010, through March 31, 2011 . Beginning October 1, 2010, clothing and footwear costing less than $110 will be subject to the 4% New York State sales and use tax and, if applicable, the ⅜% tax in the Metropolitan Commuter Transportation District (MCTD) downstate. Local sales tax rates are not affected. This means: For jurisdictions that did not enact an exemption from the local sales tax, all sales of clothing and footwear are subject to the full state and local sales tax. For jurisdictions that provided for this exemption, only the New York State tax (and MCTD tax, if applicable) will be charged. These counties: Broome, Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Madison, Schuyler, Tioga County, Wayne will charge only the 4% state sales tax. New York City businesses will charge 4⅜% (the combined state tax and MCTD rate). *** The Office of th

I find this list useful because it addresses the requirements of specific industries, as well as general information such as what new businesses need to know. Some examples: Veterinarians, Hotel and Motel Operators, Drugstores and Pharmacies, Broadcasters, the Film Industry, Snowmobile Dealers, Manufacturers, Exempt Organizations, and Residential Energy Sources and Services, the latter updated as of September 1, 2010.

If you have a mail order/Internet business in New York State, and you have NYS customers, you need to charge sales tax on the eligible items at the rate of the location of the purchaser. This can seem quite onerous. Fortunately there is an electronic Sales Tax Jurisdiction and Rate Lookup . You type in the street address and ZIP Code and it will generate the correct rate. Incidentally, trying to find a list of sales tax rates by ZIP Code would be fruitless, since ZIP Codes are no respecters of county boundary. One thing this lookup does NOT do, however, is to indicate which counties have set aside, at the county level, the sales tax on individual clothing items that cost $110 or less. You need to check this chart .

By Sharon St. John, The Mohawk Valley Small Business Development Center, SUNY Institute of Technology, Utica, NY One of my colleagues posed a question about a New York State for-profit business that would contract with banks so that after a foreclosure, the contractors would come in to clean, change locks, mow the lawn, and keep the property maintained until the bank sells it again. Should they be registered as sales tax vendors since what they're doing seems to fall into maintenance and repair? I noted that there are two NYS publications that I recommend for all my clients who are in any kind of construction business. Publication 750, A Guide To Sales Tax in New York State (PDF) , notes on page 20 under Specifically Enumerated Services: "maintaining, servicing or repairing real property both inside and outside of buildings (for example, cleaning, painting, gardening, snow plowing, trash removal and general repairs)" are subject to sales tax. My conclusion is that the com

Someone asked some interesting questions about sales tax on clothing items valued at under $110 when sold by mail, answered here . One of the examples that caught my attention was this, and it's not limited to the mail order aspect: If one is selling a shirt, cufflinks and a tie tack as a package for $50, then the whole thing is taxable because the accessories are taxable, even though the shirt would otherwise not be.

There are those of you who have probably already filed your taxes, and may have found your refunds delayed by last-minute Congressional action . Then there are those who wait until the last minute. For you folks, you'll have an extra day. Read Announcement Regarding a Change in the Due Date for Certain 2006 New York State Tax Returns to April 17, 2007 , which applies not only to those who file in Andover, Massachusetts, but everyone. Here's a Summary of Personal Income Tax Legislative Changes Enacted in 2006 and Summary of Corporation Tax Legislative Changes Enacted in 2006 . New York State and Local Sales and Use Tax Quick Reference Guide . New York taxpayers who are preparing their personal income tax returns can take advantage of a host of family-friendly credits that may lower their tax bills and increase their refunds. Some tax breaks, like the New York State and New York City Earned Income Tax Credits, may result in a refund even when no tax is owed. To view the entire d

The number of small business loans outstanding under $100,000 increased 25 percent between June 2004 and June 2005, according to a report released by the Office of Advocacy of the U.S. Small Business Administration. The increase came mostly from credit card use by small business. The report also noted that the number of small business loans outstanding between $100,000 and $1 million increased 5 percent during the same period. The report, "Small Business and Micro Business Lending in the United States, for Data Years 2004-2005," uses both Consolidated Reports of Condition and Income (Call Reports) from June 2005 and Community Reinvestment Act (CRA) reports for 2004 to review small business lending activities by financial institutions. This year's edition expands to include savings banks, savings and loan institutions, and American Territories. The report also ranks lenders in each state by their small business lending activities, as well as ranking large national financia