Effective June 1, 2019, New York has repealed its state and local sales and use tax exemption for the transportation, transmission, or distribution of gas or electricity when it is purchased from someone other than the vendor of the gas or electricity. This applies to sales made and services rendered on or after June 1, 2019, regardless of when a service contract began. As a result, services for transporting, transmitting, or distributing gas or electricity (T&D) are subject to state and local sales tax when the sale of the commodity is also subject to state and local sales tax. Since sales of gas and electricity for commercial purposes are subject to state and local tax in New York, the charges for T&D are also subject to state and local tax. Since sales of residential energy are exempt from state sales tax, charges for T&D of residential energy are also exempt from state sales tax. Where sales of residential energy are subject to local sales tax, charges for T&D related to those sales are also subject to local sales tax. For the first sales tax quarterly return period after the effective date, the state accepted a reasonable method of ascertaining the tax due for the portion of a billing period occurring on and after June 1, 2019 if the vendor’s billing method did not allow for an accurate meter reading. (TSB-M-19(1)S, New York Department of Taxation and Finance, May 29, 2019)