New York rock salt and rock salt spreading service taxable.

A New York company which provides rock salt spreading and snow removal services petitioned the Department of Taxation and Finance to make a determination of their belief that the spreading of rock salt without “the provision of snow removal services” is not taxable. The company also believes when the rock salt is applied to driveways, sidewalks, etc. it becomes a physical component of that real property thus making it an exempt sale for resale. The Department of Taxation, citing Ruston Paving Co., Dec State Tax Commn, 09/15/86, TSB-H-87(222)S, says the true object is the maintenance/servicing activity which is the snow removal service. Whether the maintenance service is part of the snow removal services is immaterial and the rock salt used to maintain real property does not become a physical component of the real property. (New York Commissioner of Taxation and Finance, TSB-A-03(40)S, November 19, 2003)

Posted on January 15, 2004