Stay up to date with sales tax: Join our mailing list!

The deadline to apply for New York City’s sales tax exemption provided under the Hurricane Emergency Sales Tax Exemption Program has been extended from February 1, 2013, to April 1, 2013. The program provides emergency assistance to small businesses impacted by Hurricane Sandy.  The program provides sales tax exemptions of up to $100,000 for each affected company on purchases of building, construction and renovation materials, machinery and equipment need to rebuild after the storm.  The program is limited to 250 companies.  Click here for the application form and additional information on the program. (Notice, New York City Industrial Development Agency, January 31, 2013)


New York City Mayor Michael Bloomberg announced that a temporary New York state and New York City sales tax deferment on materials needed for rebuilding larger businesses damaged by Hurricane Sandy will take place. (Press Release, New York City Mayor Michael R. Bloomberg, November 4, 2012)


A taxpayer’s sales of drawings delivered electronically as PDF files are not subject to New York sales and use tax. The taxpayer sells drawings for patent applications, for courtroom presentations, and for presentation at mediation and arbitrations. When drawings are delivered electronically with no tangible format, the sales of those drawings are not receipts from the sale of corporeal personal property. As a result, the transaction is not a sale of tangible personal property and is not subject to sales and use tax. If however, the drawings are delivered in paper or another tangible medium, they are subject to sales tax as they are considered tangible personal property.  (TSB-A-12(23)S, New York Commissioner of Taxation and Finance, September 20, 2012)


New Jersey is reminding taxpayers that the New Jersey/New York Cooperative Interstate Tax Program ended on December 31, 2010.  Since that date, any returns or payments received by the Division of Taxation have been forwarded to New York.  Effective September 1, 2012, any interstate returns and payments that include New York sales tax will no longer be forwarded to New York. Instead, all sales tax payments will be applied to New Jersey sales tax accounts.  If a business submits an interstate return and payment with New York tax after September 1, 2012 in error, it must apply for a refund of the overpayment with the state of New Jersey using form A-3730. (Release, New Jersey Division of Taxation, September 19, 2012)


A painting business’ purchase and installation of a platform used to contain debris and pollutants when painting and coating a bridge was not subject to New York sales tax because the platform was a temporary facility at a construction site that was a “necessary prerequisite to the construction of a capital improvement.” The Division of Taxation uses an “end result” test to distinguish capital improvements to real property from taxable real property maintenance services. The court determined that the activities met the statutory definition of a capital improvement, and were deemed as such under the “end result” test. Further, the containment of debris and pollutants from the work on the bridge was legally necessary for reasons of public health and safety. As such, it was a necessary prerequisite to the construction of a capital improvement. Therfore, the cost of the purchase and installation of the platform was exempt from New York sales tax. (L & L Painting Co., Inc., New York Division of Tax Appeals, Tax Appeals Tribunal, DTA Nos. 822266 and 822227, June 2, 2011)



Scroll to Top