New York has issued guidance outlining the method to use when determining the delivery location of credit rating services for purposes of the New York City sales tax. New York City imposes a local sales tax on credit rating services. The best method to determine the delivery location of a credit rating service subject to New York City’s local sales tax is to use the address to which the invoice for the service is sent. A credit rating service that is invoiced to an address within New York City is subject to the City’s 4.5% local sales tax. No sales tax is due to either the State or New York City if the credit rating service is invoiced to an address outside of New York City. The rule outlined in the memorandum applies to all taxable sales of credit rating services originally invoiced to an address within New York City on or after September 1, 2015. The rule supersedes the conclusion in TSB-A-13(27)S that delivery of a credit rating service occurs at the location of the representative of a client who signs an engagement letter, but that advisory opinion remains valid in all other respects. Credit rating agencies that have not previously been put on notice by the New York Department of Taxation and Finance to begin collecting tax on these services will not be penalized for under collecting tax or using a different method of sourcing prior to September 1, 2015. However, any sales tax that has been collected must be remitted to the department.(TSB-M-15(4)S, New York Department of Taxation and Finance, July 24, 2015, effective September 1, 2015)