New York does not consider furnished leased apartments to be hotels, therefore the leases for these apartments are not subject to sales tax.

The primary distinction that separates these apartments from hotels is that the leases for these furnished apartments are true contractual agreements like those of standard apartment landlord/tenant agreements. The lease periods are one month to one year or longer in length. The apartments are located in regular residential apartment buildings. (New York Commissioner of Taxation and Finance, TSB-A-03(15)S, April 4, 2003.)