New York-Minimum Wholesale and Retail Cigarette Prices

As a result of price increases by manufacturers, the minimum wholesale and retail prices for certain brands of cigarettes in New York have changed. Minimum wholesale and retail cigarette prices must be determined by referencing manufacturers’ list prices. When a minimum price change occurs because of a manufacturer’s price increase or decrease, the enforcement date of the change is the second Monday after the price change is announced. If a price change is announced on a Monday, that day is considered to be the first Monday. The enforcement date is in effect whether or not a manufacturer notifies the Tax Department of the price change. After one manufacturer announces a price change, if other manufacturers also change their prices before the second Monday after the initial price change is announced, then those subsequent price changes will also be effective for enforcement purposes on the same second Monday. When a minimum price change occurs because of an excise tax rate change, the enforcement date of the change is the date the rate

Change takes effect. you must refer to the manufacturer’s price list. If you are unable to obtain the price list, please ask your supplier for assistance. You must charge your customers the minimum price or any price in excess of the minimum price. You may not offer merchandise for sale as a tie‑in with cigarettes if the total price of the items sold is less than the minimum price of cigarettes plus your cost for the other merchandise.

<>Furthermore, it is illegal for any cigarette agent, wholesale dealer, or retail dealer to induce, or attempt to induce, or to procure the purchase of cigarettes at a price less than the minimum price set by law. The Tax Department will issue this publication as notification for changes in the minimum prices each time a manufacturer’s price change occurs or a state or city excise tax changes. The prepaid sales tax is paid by the agent at the time the cigarette tax stamps are purchased. The prepaid sales tax is passed along in each subsequent sale down to and including the retail dealer (but is not passed down to the consumer). At the time of delivery, the seller must give the purchaser either Form ST‑133, Certificate of Prepayment of Sales Tax on Cigarettes, or have the required information included on the invoice. State and local sales taxes — State and local sales taxes must be collected from the consumer at the time of the retail sale. Sales tax must be collected upon the total retail sale price, including sales in New York City (effective September 1, 2003). For more information, see Important Notice N‑03‑22,Computation of Sales Tax on Cigarettes Sold within the City of New York. Computing the minimum wholesale cigarette pricesPublication 508, Minimum Price List for Cigarettes, lists the minimum prices for standard and nonstandard brands of cigarettes by the carton (20 cigarettes per pack, 10 packs per carton). The basic cost of cigarettes means the invoice cost of cigarettes to the agent who purchases from the manufacturer, or the replacement cost of cigarettes to the agent, in the quantity last purchased (whichever is lower), less all trade discounts (except discounts for cash), to which is added the full face value of any stamps (excise tax only) that are required by law. (The federal excise tax placed on the manufacturer would be included in the invoice cost of cigarettes from the manufacturer.) The basic cost of cigarettes does not include any sales tax prepaid by the agent at the time the cigarette tax stamps were purchased.

Carrying renewed retail cigarette and tobacco licenses and sales tax permit is mandatory to sell any tobacco items in the state of New York. Certificate of Authority and Retail cigarette license must be displayed at location prominently.

To Read More : New York-Minimum Wholesale and Retail Cigarette Prices

Source : Business Documents Filing in all 50 States

Tips To Follow Business Taxes and other required filing requirements!

If you are a sole proprietor or a partnership:

• You may need to file sales and use taxes if are engaged selling taxable product(s) or service(s).
• You may need to file Payroll Taxes if have employee(s).
• You may need to file local, state and federal estimated taxes based on your income.
• You are required to file business return(s) end of the year
• You may need to renew your license(s)
• You may need to renew your insurance(s)
• You may need to renew your permit(s)
• You may need to file excise tax
• Time to time during the year should prepare cash flow statements to control your receivables, payables and cash in hand. It is a very important element for any business to analyze the current cash flow position and see the strength of the company to run a successful business.

If you are incorporated: for instance; Corporation, LLC, LP, Professional Corporation, Professional LLC Etc.

• You may need to file sales and use taxes if are engaged selling taxable product(s) or service(s).
• You may need to file Payroll Taxes if applicable. Officer(s) and member(s) of the company may be exempted depends on the structure of the company.
• You may need to file local, state and federal estimated taxes based on your income.
• You are required to file business returns end of the year
• You are also required to file annual reports or other reports based on your state requirements to keep your company in good standing.
• You also may request to your state to provide a certificate of good standing or certificate of existence to see if your company is following state guidelines to file taxes.
• You may need to renew your license(s)
• You may need to renew your insurance(s)
• You may need to renew your permit(s)
• You may need to file excise tax
• You may need to distribute K-1 among your members or stockholders to file their personal income tax return(s)
• Time to time during the year should prepare cash flow statements to control your receivables, payables and cash in hand. It is a very important element for any business to analyze the current cash flow position and see the strength of the company to run a successful business.

To Read More : Tips To Follow Business Taxes and other required filing requirements!
Source : Business Documents Filing in 50 Stateshttp://www.infotaxsquare.com/sole-proprietorship.html

NYS-Tax Law provides an exemption from the tax imposed on sales of tangible personal property for food sold for human consumption!

NYS-Tax Law provides an exemption from the tax imposed on sales of tangible personal property for food sold for human consumption. The sales and use tax regulations provide that the phrase sold for human consumption means that the items sold are, in their normal use, regarded as being for human consumption.” Pie pumpkins (i.e., sugar, deep red, golden cushaw, etc.) and similar gourds generally used by a purchaser in cooking pies, cakes, breads, cookies, etc. constitute food sold for human consumption and are not subject to sales tax.

Decorative and carving pumpkins (e.g., Connecticut field, etc.), like other decorative gourds, are not being marketed or sold, in their normal or intended use, for human consumption. Thus, decorative and carving pumpkins and other decorative gourds whether sold at supermarkets, farm stands, nurseries, or other businesses, are not sold as food, and constitute tangible personal property subject to sales tax.

To Read More: NYS-Tax Law provides an exemption from the tax imposed on sales of tangible personal property for food sold for human consumption!

Source: Business Documents Filing In All 50 States

NYS-Sales and Compensating Use Tax Treatment of Certain Information Services

Tax Department policy regarding taxable information services:

A wide variety of businesses are engaged in furnishing taxable information services. As a general rule, furnishing information created or generated from a common database, or information that is widely accessible, is a taxable information service. The sale of a report that uses or relies on statistical models or historical data is also generally considered to be a taxable information service, as is the service of gathering information from a variety of sources and recasting that information into a report. The resulting reports are not considered personal or individual in nature because they contain information that can be incorporated into reports furnished to other persons. A sale includes the sale of a single report and also includes an ongoing payment for access to information, such as a subscription.

Whether a service qualifies as an information service depends on its primary function. The fact that one element of a service is an information service does not mean that the service as a whole is taxable as an information service. The Tax Department will determine a service’s primary function based on an examination of the nature of the service being sold and what is being paid for by the purchaser. How the buyer subsequently uses the information purchased is not relevant to this inquiry. If a customer’s chief purpose in paying for a service is to receive information from that service, whether it is the price of a stock, the chain of ownership of real property, or contact information for a person meeting certain qualifications, the service as a whole qualifies as an information service. This result holds true even if the customer receives other benefits as part of the service. A service is taxable as an information service if its primary function is one of the following:

• Advertising rate reports for a given medium or market
• Archive services (examples include sales of access to historical information, documents and manuscripts, archived articles or journals)
• College selection services and financial assistance information services (examples include college and scholarship search services)
• Consumer product reports, such as product evaluations
• credit monitoring services
• Directory and mailing list services (examples include the sale of customer lists, lists of postal mailing addresses, lists of e-mail addresses, lists of bad checks, telephone directories, business directories, collections of fact, price lists and almanacs, collections or compilations of proprietary drug trials, and compilations of legal case results)
• Employment history reports
• Employment placement reports and employment registries (examples include
• Employment databases, babysitting registries, and model registries), but not charges merely to post information
• genealogical research services;
• Information furnished by credit reporting bureaus;
• Internet-based data and Web search services (examples include Internet entertainment information sites, Internet sports information sites, Internet newsletters, and Internet search portals and search Web sites);
• Investment reports and services (examples include stock market reports and forecasts, mutual fund rating services, and stock quotation services);
• Matching or networking services (examples include online dating services, physician matching services, and contractor locator services), but not charges merely to post information;
• News clipping services (examples include services providing individual news or
• Magazine articles on a given subject);
• Newsletter subscriptions (however, newspapers and periodicals are not taxable);
• Online telephone or address directory services;
• Patent search services (unless provided by an attorney in the practice of law);
• Pedigree record services (for example, an online directory);
• People or parts locator services (examples include online classmate locator services or online vintage car parts locator services);
• Public records furnished (electronically or in paper format) by a private entity, such as a document retrieval service (examples include real property deeds, motor vehicle accident or violation reports, etc.; however, public records sold by a governmental entity, such as a county clerk, are not subject to tax; for more information, see Public documents sold by private entities below);
• Real property information databases (but if the database provides only access to public documents as such see Public documents sold by private entities below);
• Reporting services that compile news stories or issues related to a certain topic;
• Reports or databases of information on movies, books, or other media;
• Sports scouting reports;
• Sports statistics or athletic performance reports (examples include horse racing handicapping or tip sheets, and fantasy baseball or fantasy football reports); and survey results (examples include marketing and public opinion research reports).

The absence of a service from this list does not mean that it is not subject to tax under Voluntary Disclosure and Compliance program.

Taxpayers, including sellers of information services, are eligible for the Tax Department’s Voluntary Disclosure and Compliance program. The goal of the program is to encourage taxpayers to voluntarily disclose and correct delinquent tax liabilities and avoid penalties.

To Read More: NYS-Sales and Compensating Use Tax Treatment of Certain Information Services

Source: Business Document Filing in All 50 States.

Tax exemption

In many countries, nonprofits may apply for tax exempt status, so that the organization itself may be exempt from income tax and other taxes. In the United States, to be exempt from federal income taxes the organization must meet the requirements set forth by the Internal Revenue Service.

After a recognized type of legal entity has been formed at the state level, it is customary for the nonprofit organization to seek tax exempt status with respect to its income tax obligations. That is typically done by applying to the Internal Revenue Service (IRS), although statutory exemptions exist for limited types of not for profit organizations. The IRS, after reviewing the application to ensure the organization meets the conditions to be recognized as a tax exempt organization (such as the purpose, limitations on spending, and internal safeguards for a charity), may issue an authorization letter to the nonprofit granting it tax exempt status for income tax payment, filing, and deductibility purposes. The exemption does not apply to other Federal taxes such as employment taxes. Additionally, a tax-exempt organization must pay federal tax on income that is unrelated to their exempt purpose. Failure to maintain operations in conformity to the laws may result in an organization losing its tax exempt status.
Individual states and localities offer nonprofits exemptions from other taxes such as sales tax or property tax. Federal tax-exempt status does not guarantee exemption from state and local taxes, and vice versa. These exemptions generally have separate application processes and their requirements may differ from the IRS requirements. Furthermore, even a tax exempt organization may be required to file annual financial reports (IRS Form 990) at the state and federal level.

To Read More: Tax exemption

Source: Business Document Filing in All 50 States.

NYS-Sales and Use Tax on retail sales of tangible personal property and enumerated services!

Tax Law section 1105 imposes sales and use tax on retail sales of tangible personal property and enumerated services. Prewritten computer software is included within the definition of tangible personal property, “regardless of the medium by means of which such software is conveyed to the purchaser.” Tax Law §1101(b)(6). Prewritten software, even though modified or enhanced to the specifications of a specific purchaser, remains prewritten software subject to tax. However, if a charge for the custom modification or enhancement is reasonable and separately stated on the invoice or billing statement, then the separately stated charge for the custom modification or enhancement is not subject to tax. See Tax Law §1101(b)(6); State and Local Sales and Compensating Use Taxes Imposed on Certain Sales of Computer Software, TSB-M-93(3)S.

Section 526.7(e) of the Sales and Use Tax Regulations provides generally that “a sale is taxable at the place where the tangible personal property or service is delivered, or the point at which possession is transferred by the vendor to the purchaser or his designee.” Section 526.7(e)(4) further provides that, with respect to a “license to use,” a transfer of possession has occurred if there is a transfer of actual or constructive possession, or if there has been a transfer of “the right to use, or control or direct the use of, tangible personal property.”

To the extent that the CSA also involves custom modifications of software, separate charges for that service would not be subject to tax if the charges are reasonable in relation to the total charges.

To Read More: NYS-Sales and Use Tax on retail sales of tangible personal property and enumerated services!

Source: Business Documents Filing In All 50 States

NYS-Sales and Compensating Use Tax Treatment of Certain Information Services

Sales and Compensating Use Tax Treatment of Certain Information Services

Tax Department policy regarding taxable information services:

A wide variety of businesses are engaged in furnishing taxable information services. As a general rule, furnishing information created or generated from a common database, or information that is widely accessible, is a taxable information service. The sale of a report that uses or relies on statistical models or historical data is also generally considered to be a taxable information service, as is the service of gathering information from a variety of sources and recasting that information into a report. The resulting reports are not considered personal or individual in nature because they contain information that can be incorporated into reports furnished to other persons. A sale includes the sale of a single report and also includes an ongoing payment for access to information, such as a subscription.

Whether a service qualifies as an information service depends on its primary function. The fact that one element of a service is an information service does not mean that the service as a whole is taxable as an information service. The Tax Department will determine a service’s primary function based on an examination of the nature of the service being sold and what is being paid for by the purchaser. How the buyer subsequently uses the information purchased is not relevant to this inquiry. If a customer’s chief purpose in paying for a service is to receive information from that service, whether it is the price of a stock, the chain of ownership of real property, or contact information for a person meeting certain qualifications, the service as a whole qualifies as an information service. This result holds true even if the customer receives other benefits as part of the service. A service is taxable as an information service if its primary function is one of the following:

· advertising rate reports for a given medium or market

· archive services (examples include sales of access to historical information, documents and manuscripts, archived articles or journals)

· college selection services and financial assistance information services (examples include college and scholarship search services)

· consumer product reports, such as product evaluations

· credit monitoring services

· directory and mailing list services (examples include the sale of customer lists, lists of postal mailing addresses, lists of e-mail addresses, lists of bad checks, telephone directories, business directories, collections of fact, price lists and almanacs, collections or compilations of proprietary drug trials, and compilations of legal case results)

· employment history reports

· employment placement reports and employment registries (examples include

· employment databases, babysitting registries, and model registries), but not charges merely to post information

· genealogical research services;

· information furnished by credit reporting bureaus;

· Internet-based data and Web search services (examples include Internet entertainment information sites, Internet sports information sites, Internet newsletters, and Internet search portals and search Web sites);

· investment reports and services (examples include stock market reports and forecasts, mutual fund rating services, and stock quotation services);

· matching or networking services (examples include online dating services, physician matching services, and contractor locator services), but not charges merely to post information;

· news clipping services (examples include services providing individual news or

· magazine articles on a given subject);

· newsletter subscriptions (however, newspapers and periodicals are not taxable);

· online telephone or address directory services;

· patent search services (unless provided by an attorney in the practice of law);

· pedigree record services (for example, an online directory);

· people or parts locator services (examples include online classmate locator services or online vintage car parts locator services);

· public records furnished (electronically or in paper format) by a private entity, such as a document retrieval service (examples include real property deeds, motor vehicle accident or violation reports, etc.; however, public records sold by a governmental entity, such as a county clerk, are not subject to tax; for more information, see Public documents sold by private entities below);

· real property information databases (but if the database provides only access to public documents as such see Public documents sold by private entities below);

· reporting services that compile news stories or issues related to a certain topic;

· reports or databases of information on movies, books, or other media;

· sports scouting reports;

· sports statistics or athletic performance reports (examples include horse racing handicapping or tip sheets, and fantasy baseball or fantasy football reports); and survey results (examples include marketing and public opinion research reports).

The absence of a service from this list does not mean that it is not subject to tax under

Voluntary Disclosure and Compliance program

Taxpayers, including sellers of information services, are eligible for the Tax Department’s Voluntary Disclosure and Compliance program. The goal of the program is to encourage taxpayers to voluntarily disclose and correct delinquent tax liabilities and avoid penalties.

To Read More: NYS-Sales and Compensating Use Tax Treatment of Certain Information Services

Source: Business Documents Filing In All 50 States

NY State and local sales and use taxes on long-term motor vehicle leases!

Sales and use taxes are commonly referred to as sales tax. It also includes any lease for a period of less than one year that includes one or more options to renew or contains similar contract provisions which, if exercised, would make the total period of the lease one year ormore. Motor vehicle means a motor vehicle as defined in section 125 of the Vehicle and Traffic Law, with a gross vehicle weight of 10,000 pounds or less. The term motor vehicle includes any motorized vehicle operated or driven on a public highway. Cars, light trucks, vans, motorcycles, and motorbikes are examples of motor vehicles.

The following vehicles are not considered motor vehicles:

• Electrically-driven mobility assistance devices operated or drivenby a person with a disability;
• Snowmobiles;
• All terrain vehicles (ATVs);
• Fire and police vehicles (other than ambulances);
• Farm tractors and other farm equipment used exclusively for agricultural purposes or for snow plowing; and
• Self-propelled caterpillar or crawler-type equipment while operated on a construction site.

General Section 1111(i) of the Tax Law provides special rules for computing and paying State and local sales and use taxes on long-term motor vehicle leases. In general, all receipts due or consideration given, or contracted to be given, for the leased motor vehicle for the entire period of the lease (including any option to renew or similar provision) are subject to sales tax at the inception of the lease, even if the payments are not required to be made at that time. The total sales tax due must be paid by and collected from the lessee on the date the first lease payment is due or the date the vehicle is registered with the New York State Department of Motor Vehicles (DMV), whichever is earlier.

Certain long-term motor vehicle leases by nonresidents not subject to tax:

New York State and local sales taxes do not apply to the long-term lease of a motor vehicle, even if the lessee enters into the lease and takes physical possession of the vehicle in New York State, if at the time of taking delivery, all of the following conditions are met:

• The lessee is a nonresident of New York State;
• The lessee has no permanent place of abode in New York State;
• The lessee is not engaged in carrying on in New York State any employment, trade, business, or profession in which the vehicle will be used in this state;
• The dealer does not issue to the lessee a New York State temporary or other similar certificate of registration as provided in section 420 or 420-a of the New York Vehicle and Traffic Law;
• The lessee does not register the vehicle in New York State prior to registering the vehicle in another state or jurisdiction; and
• Prior to the time the lessee takes delivery of the vehicle, the lessee gives the dealer a properly completed Form DTF-820, Certificate of Nonresidency of New York State and/or Local Taxing Jurisdiction. A dealer who obtains Form DTF-820 from the lessee prior to the time the vehicle is delivered to the lessee, and who retains Form DTF-820 and makes it available for inspection by the Tax Department, will not be liable for failing to collect sales tax on the lease transaction, provided the dealer does not know that the document issued by the lessee is false.

• To Read More: NY State and local sales and use taxes on long-term motor vehicle leases!

  Source: Business Documents Filing In All 50 States

NYS-Movies received by satellite are not subject to sales tax and Movies received in a tangible format are subject to tax!

Rentals of movies delivered by satellite transmission or otherwise delivered electronically are not subject to sales tax. These rentals are considered to be sales of intangible property.

Rentals of movies in a tangible format such as tapes or disks are subject to sales tax as sales of tangible personal property, unless otherwise exempt. When rents a movie from the film studio by receipt of a hard drive, purchasing the movie in a tangible format. The hard drive is tangible personal property regardless of the fact that must receive an electronic key to convert the digital.

To Read More: NYS-Movies received by satellite are not subject to sales tax and Movies received in a tangible format are subject to tax!

Source: Business Documents Filing In All 50 States

SALES ON WHICH NO PUBLIC TRANSPORTATION ASSISTANCE FUND TAXES (PTA) AND FEES ARE TO BE COLLECTED!

New tires for highway use by a governmental entity, leases and rentals of motor vehicles that qualify for a Sales and Use Tax exemption are not subject to PTA Taxes or Fees.

To Read More: SALES ON WHICH NO PUBLIC TRANSPORTATION ASSISTANCE FUND TAXES (PTA) AND FEES ARE TO BE COLLECTED!

Source: Business Document Filling in all 50 States.

Who is required to collect sales tax in the state of Pennsylvania?

PERSONS REQUIRED TO BE LICENSED:

a. Sales, Use and Hotel Occupancy Taxes

Every person, association, fiduciary, partnership, corporation, or other entity making taxable sales of tangible personal property or services must obtain a Sales Tax license. Sales include leasing or renting of tangible personal property and the rental of hotel or motel rooms. Failure to be licensed may subject the seller to a fine. Entities which make taxable purchases but did not pay sales tax upon purchase should report use tax directly to the Department.

b. Public Transportation Assistance Fund Taxes and Fees

(Every person, association, fiduciary, partnership, corporation, or other entity selling new tires for highway use, or renting, or leasing of motor vehicles must obtain a separate license. Failure to do so may subject the seller to a fine. Entities leasing motor vehicles from no registered vendors should report tax directly to the Department.

To Read More: Who is required to collect sales tax in the state of Pennsylvania?

Source: Business Documents Filing In All 50 States

NYS Department of Taxation and Finance- Excise Tax on Cigarettes to increase on July 1, 2010 Cigarette floor tax returns must be filed by September 20

Retail dealers, wholesale dealers, and cigarette stamping agents must pay the increased tax on all stamped packs of cigarettes and UN affixed tax stamps in their possession as of the close of business June 30, 2010.

To comply with the new requirements:

• Dealers and agents must take a physical inventory of all stamped packs of cigarettes on hand as of the close of business June 30, 2010.
• Agents must also take a physical inventory of all UN affixed cigarette tax stamps and UN stamped packs of cigarettes on hand as of this date.
• Dealers and agents must file a cigarette floor tax return by September 20, 2010, and pay a cigarette floor tax. Cigarette excise tax increase (effective July 1, 2010)

Inventory:

Retail dealers, wholesale dealers, and stamping agents, please note:

• If you store or sell cigarettes at more than one business location, you must keep the original inventory report at each location for inspection.
• You must keep all records of the physical inventory used to arrive at the cigarette floor tax due. You will have to produce these records if you are audited by the Tax department.
• You must take your own inventory. You may not rely on the random inventory counts made by Tax Department personnel.

Vending machines:

If you operate cigarette vending machines, it may not be possible for you to conduct a complete physical inventory as of the close of business June 30, 2010. You may calculate your Inventory in the following way:

• Take a physical inventory of as many locations as you can with your available personnel.
• For vending machines that cannot be inventoried as of June 30, 2010, calculate your inventory at one half the machine’s normal fill capacity.
• Base the machine’s normal fill capacity on its individual inventory records.

If you are an agent, you must also calculate the floor tax due on UN affixed cigarette tax stamps and indicate the quantity of unstamped packs of cigarettes possessed as of the June 30, 2010, inventory.

Multiple locations:

If you are a retail dealer, wholesale dealer, or cigarette stamping agent who stores or sells cigarettes at more than one location:

• File one consolidated cigarette floor tax return including inventory from all locations.
• Report the inventory of stamped packs of cigarettes at each separate location.

Payment:

You must pay the entire amount due when you file Form CG-11 on or before September 20, 2010.

Penalties and interest:

Retail dealers, wholesale dealers, and cigarette stamping agents who are subject to the cigarette floor tax must file a return and pay the tax due by September 20, 2010. Failure to file a cigarette floor tax return or to pay the appropriate tax due by the due date:

• Will subject you to the imposition of interest and civil penalties under Article 20 of the tax Law, and
• May result in criminal penalties under Article 37 of the Tax Law.

Amount of penalties:

Cigarette stamping agents – Penalties imposed on agents are based on the period of time for which a return remains UN filed or the tax remains unpaid.

To read more! NYS Department of Taxation and Finance- Excise Tax on Cigarettes to increase on July 1, 2010 Cigarette floor tax returns must be filed by September 20, 2010! Source: InfoTaxSquare Business Documents Filing In All Fifty States!

Will registration with my market states make me liable for any past sales tax?

Registration alone does not make you liable for past uncollected sales tax assuming you did not have a business presence in the state or collect tax on the state's behalf. If you had a business presence in the state, you are liable for past taxes. If you have a past tax liability in your market states, you should make a voluntary disclosure. Contact the revenue agency in each of your market states for more details.

To read more! Will registration with my market states make me liable for any past sales tax? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

What happens if I do not register sales tax voluntarily?

The member states exchange information on businesses and their interstate transactions. If you make sales into a member state and do not register, that state could audit you. If your business presence is established in any other member states, you may be liable for all unpaid taxes, penalties, and interest. If you do not have a business presence in a state and do not voluntarily register to collect the tax, your customers could be billed for the use tax, penalty, and interest on their purchases.

To read more! What happens if I do not register sales tax voluntarily? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

How are out-of-state sales tracked?

The Southeastern Association of Tax Administrators (SEATA) exchanges information to help ensure transactions are taxed fairly across state boundaries. Member states collect and exchange audited sales and purchases information for other member states. Customers who are identified through audit verification will be billed for use tax, penalties, and interest.

The SEATA member states are: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.

To read more! How are out-of-state sales tracked? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

Florida businesses: Do you have out-of-state customers?

If you have a business presence in a state, you must register with that state for tax purposes. Examples of business presence (sometimes referred to as nexus) include:

· Owning property in that state.
· Making regular deliveries of your merchandise.
· Providing repair services.
· Sending your representatives to solicit orders.
If you sell items to customers in another state, but do not have nexus, you do not have to collect sales tax on the items you sell to them. However, your customers are responsible for paying use tax on the items when they receive them.

We encourage businesses to voluntarily register with their market states to collect sales tax from out-of-state customers. If you voluntarily register to collect tax, you can help prevent your customers from receiving a bill from another state for use tax, penalty, and interest.

To read more! Florida businesses: Do you have out-of-state customers? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

Quick Reference Guide for Taxable and Non Taxable (Exempt Property) and Services in the State of New York!

Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt.

Sales of services are generally exempt from New York sales tax unless they are specifically taxable.

This bulletin describes:

• Taxable property and services,
• Exempt property and services, and
• Exemption documents.

Tangible personal property and services

Whether sales of a particular good or service are taxable may depend on many factors. You should consult our publications and tax bulletins for more detailed explanations of what property and services are subject to sales tax. See the listing below for examples of taxable tangible personal property and services.
The term tangible personal property means any kind of physical personal property that has a material existence and is perceptible to the human senses (in other words, something you can see and touch).

Examples of taxable tangible personal property, services, and transactions that are subject to sales tax are:

• Tangible personal property:
◦ Furniture, appliances, and light fixtures;
◦ Certain clothing and footwear;
◦ Machinery and equipment, parts, tools, and supplies;
◦ Computers;
◦ prewritten (canned/off-the-shelf/standard) computer software (whether transferred by CD-ROM, Internet download, remote access, etc.);
◦ Motor vehicles;
◦ Boats and yachts;
◦ Fuels (for example, gasoline, diesel fuel, and kero-jet fuel);
◦ Candy and confections;
◦ bottled water;
◦ Soda and beer;
◦ Cigarettes and tobacco products;
◦ Cosmetics and toiletries;
◦ Jewelry;
◦ Artistic items such as sketches, paintings, and photographs;
◦ Animals (for example, dogs, cats, or pet birds);
◦ Food and supplies for animals; TB-ST-740 (6/10)
◦ trees, shrubs, and seeds;
◦ Coins and other monetary items, when purchased for purposes other than for use as a medium of exchange;
◦ Building materials; and
◦ prepaid telephone calling cards.
• Restaurant food and drink;
• Utility and (intrastate) telecommunication services;
• Telephone answering services;
• prepaid telephone calling services;
• Mobile telecommunication services;
• Certain information services;
• processing, fabricating, printing, or imprinting of tangible personal property for a customer who furnishes the tangible personal property and doesn’t plan to resell it;
• maintaining, installing, servicing, and repairing of tangible personal property;
• storing tangible personal property (does not include certain rentals of mini-storage units that constitute the rental of real property - see TSB-M-86(3)S, Taxable Status of the Rental of Self-Service Mini-Storage Units);
• maintaining, servicing, and repairing real property;
• Certain parking and garaging or storing of motor vehicles;
• Interior decorating and design services;
• Protective and detective services;
• Passenger transportation services with a driver using limousines, black cars, and certain other motor vehicles (not including taxi and bus services - see TSB-M-09(7)S, Additional Guidance Relating to the Sales Tax on Certain Transportation Services);
• furnishing or providing entertainment or information by telephony or telegraphy or by telephone or telegraph service, provided, for example, over phone numbers with an 800 or 900 prefix;
• Hotel occupancy;
• Admission charges to a place of amusement;
• Social and athletic club dues; and
• Certain portions of cabaret charges.

Services subject only to New York City sales tax are:

• Beautician services, barbering, and hair restoring;
• Tanning;
• Manicure and pedicure;
• Electrolysis;
• massage services and services provided by weight control and health salons, gymnasiums, Turkish and sauna baths, and similar establishments;
• Written or oral credit rating services; and
• Oral credit reporting services not delivered by telephone.

Tax exempt property and services

The chart below lists property and services that are generally exempt from sales tax. It also lists:
• Tax Law sections that provide the exemption;
• Department publications, bulletins, and technical memoranda (TSB-Ms) that are relevant to the exemption; and
• Exemption documents, if any, that the customer must give to the seller for the sale to be treated as exempt from tax. TB-ST-740 (6/10)

You should not collect sales tax on exempt sales that do not require an exemption document. However, for sales that require an exemption document, you must collect sales tax unless you receive a properly completed exemption document from the purchaser. You must receive the exemption document within 90 days of the date you delivered the property or rendered the service.
Sales to New York State, its political subdivisions, and to the federal government are also exempt from sales tax. In these cases, you should receive a government purchase order or other suitable documentation, such as Form ST-129, Exemption Certificate - Tax on occupancy of hotel rooms. The general exemption for sales to New York State, its political subdivisions, and to the federal government does not apply to sales of motor fuel or diesel motor fuel that is not used or consumed by the governmental entity (see section 1116(b)(5) of the Tax Law).
See Tax Bulletin, Exemption Certificates for Sales Tax (TB-ST-240).

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. They are accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. TB-ST-740 (6/10) Page 7 of 7 1 Special rules apply to contractors who provide maintenance and other services to real property. For more information, see Publication 862, Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property.

To read more! Quick Reference Guide for Taxable and Non Taxable (Exempt Property) and Services in the State of New York! Source: InfoTaxSquare Business Documents Filing In All Fifty States!

NYS-Is Towing Service Subject To Sales Tax?

The service of towing disabled or inoperative motor vehicles is subject to sales tax, regardless of whether the towing provider itself performs repairs on the vehicles it tows. Transportation of motor vehicles, heavy equipment, and other tangible personal property provided by common or contract carriers is not an enumerated service subject to the sales tax.

The towing of an inoperative or disabled vehicle or equipment, either by tow truck or flatbed, so that repair or maintenance services may be performed on that vehicle or equipment is considered a constituent part of the maintenance service subject to tax pursuant to section 1105(c)(3) of the Tax Law. The charge for the towing service, whether or not separately invoiced, and whether or not separately stated on a bill or invoice to the customer for repair or maintenance, is subject to sales tax under section 1105(c)(3).

Recovery services related to a motor vehicle’s or equipment’s ability to operate properly (e.g., dislodging a vehicle and returning it to the roadway, or removing a disabled vehicle from the roadway) are activities that are related to keeping the motor vehicle or equipment in a condition of fitness, efficiency, readiness, or safety, and therefore constitute repair or maintenance services to the vehicle or equipment. Charges for these services are also subject to sales tax. See section 1105(c)(3) of the Tax Law and section 527.5(a)(3) of the Sales and Use Tax Regulations. It is immaterial whether such services are provided by tow truck or flatbed.


If Mr. X has provided towing service that is subject to tax and its customer is claiming exemption from sales tax, the customer must provide Mr. X with an appropriate and properly- completed exemption document. For example, if the customer’s vehicle is used exclusively by the customer for rental purposes, the customer may provide Mr. X with a properly completed Resale Certificate (Form ST-120) in lieu of paying sales tax on the charges for towing. If the customer’s vehicle or equipment is used directly and predominantly in the production of tangible personal property for sale, Petitioner’s towing service will be exempt from sales tax under section 1105-B(b) of the Tax Law. The customer in that case should provide Mr. X with a properly completed Exempt Use Certificate (Form ST-121) in lieu of paying sales tax on the charges for towing. If the customer’s vehicle or equipment is a tractor trailer or semi trailer of which the gross vehicle weight exceeds 26,000 pounds, the towing services will be exempt under section 1115(g) of the Tax Law. The customer in that case should provide Petitioner a properly completed Exemption Certificate for Tractors, Trailers, Semi trailers, or Omnibuses (Form ST-121.1).



Opinion

In general, charges for the service of towing disabled and inoperative vehicles are subject to sales tax. Charges for the transportation of property, except to the extent that the charge for a transportation or delivery service is part of a vendor’s receipt from the sale of taxable property or services, are not subject to sales tax. See sections 526.5(g)(1) and 526.5(g)(3) of the Sales and Use Tax Regulations.

The service of transporting property from one location to another is generally not a service upon which sales tax is imposed. The transportation of a vehicle or equipment (including as an automobile transporter) from one location to another by Mr. x as a private or common carrier of goods (i.e., transportation subject to regulation pursuant to Transportation Law section 2.8 and Article 8 of the Transportation Law), if not otherwise provided in conjunction with the sale of, or repair, maintenance or storage services to, the transported property (e.g.; Petitioner is merely flat bedding a classic car to or from a car show, transporting a forklift from one customer facility to another, or transporting a repossessed vehicle), constitutes a nontaxable transportation service. Thus, when Petitioner is providing transportation of vehicles (capable of being operated) or equipment pursuant to its Department of Transportation (DOT) certificate and ICC permit as a common carrier or contract carrier of goods by motor vehicle, its charges for such transportation services are not subject to tax.

However, receipts subject to tax includes any charge by the vendor to the purchaser for shipping or delivery regardless of whether such charges are separately stated (see Tax Law section 1101(b)(3)). Accordingly, the charges by a vendor for towing or transportation whether by common carrier, contract carrier or otherwise are subject to sales tax when the towing or transportation relates to the shipping or delivery of the property (including property upon which taxable services were performed) by the vendor to its customer.

Generally, the rate of tax to be collected is determined by the location where the vehicle or other equipment that was the subject of the tow is delivered to the customer (i.e., the vehicle’s owner, operator, etc.) or the customer’s designee. If the charges for the towing service are billed to the vehicle’s owner, operator, etc. by the vendor who performed maintenance services upon the towed vehicle, or sold and installed property in or on the vehicle (e.g., batteries, tires, hoses, belts, etc.), the rate of tax is determined by the location where that vendor delivers the repaired vehicle to the customer upon completion of the maintenance and repair, installation of the property sold, or other taxable sales and services.

To read more! NYS-Is Towing Service Subject To Sales Tax? Source: InfoTaxSquare Business Documents Filing In All Fifty States!

New York State-Sales tax exempt organizations

Organizations that must apply:

Not-for-profit religious, charitable, educational, or other organizations (often called section 501(c)(3)) organizations)
United Nations and other international organizations
United States armed forces posts and organizations

Organizations that don't need to apply:
New York State and United States governmental entities (because they are already exempt)
Other states and political subdivisions (because they don't qualify)
Organizations that are organized and/or operated under some other New York State or federal statute that exempts them from state and/or local sales taxes

If you're granted sales tax exempt status

NYS issues Form ST-119, Exempt Organization Certificate, to you. It will contain your six-digit New York State sales tax exemption number. (Note that the nine-digit federal employer identification number issued by the Internal Revenue Service is not a sales tax exemption number.) You'll also receive Form ST-119.1, Exempt Purchase Certificate.

To make tax exempt purchases:

Complete Form ST-119.1 (This form is mailed with your exemption certificate, and is not available on our Web site. To get additional copies of this form, contact our sales tax exempt organizations unit.)
Present the completed form to the store at the time of purchase. All purchases made by an exempt organization are exempt from sales tax.
New York State and United States governmental entities that are already exempt should make exempt purchases by presenting governmental purchase orders or a letterhead.
Acceptable exempt certificate use

You may only use your exempt organization certificate to make exempt purchases on behalf of the approved organization.

An officer, member, or representative of the organization may not use the certificate to make personal purchases.
Only the organization that was issued the certificate may use it.
The exempt organization must be the purchaser and payer of record.
Misuse of your exempt organization certificate is punishable by imprisonment and a fine of up to $20,000.

To read more! New York State-Sales tax exempt organizations Source: InfoTaxSquare Business Documents Filing In All Fifty States!

Sales Tax On Roaming Service In The State of New York

1. Are the roaming services excluded from New York State and local sales taxes and the telecommunications excise tax under the federal Mobile Telecommunications Sourcing Act on the ground that they are provided to a customer with a place of primary use outside New York State?

2. Alternatively, are the roaming services provided to customers of foreign mobile telecommunications carriers excluded from New York State and local sales taxes and the telecommunications excise tax as sales for resale?

Analysis

Sales of roaming services are not subject to State and local sales taxes or the telecommunications excise tax because they are provided to mobile telecommunications customers with places of primary use outside New York State. Tax Law section 1111(l), which incorporates the provisions of the federal Mobile Telecommunications Sourcing Act (4 USC § 116, et seq.) for purposes of New York State and local sales taxes, provides:

Any charge for a service or property billed by or for a mobile telecommunications customer’s home service provider shall be deemed to be provided by such mobile telecommunications customer’s home service provider.
(Charges for mobile telecommunications service that are provided or deemed to be provided by a mobile telecommunications customer’s home service provider shall be sourced to the taxing jurisdiction where the mobile telecommunications customer’s place of primary use is located, regardless of where the mobile telecommunications service originates, terminates or passes through.

A “home service provider” is a facilities-based carrier or reseller, with which the mobile telecommunications customer contracts for the provision of mobile telecommunications service.

“Mobile telecommunications customer” means either:

(A) a person or entity that contracts with a home service provider for mobile telecommunications services; or (B) if the end user of mobile telecommunications services is not the contracting party, the end user of the mobile telecommunications service, but this clause (B) applies only for the purpose of determining the place of primary use. “Mobile telecommunications customer” does not include either (a) a reseller of mobile telecommunications service; or (b) a serving carrier under an arrangement to serve a mobile telecommunications customer outside the home service provider’s licensed service area.

[T]he street address representative of where a mobile telecommunications customer’s use of the mobile telecommunication service primarily occurs, and must be

(i) the residential street address or the primary business street address of the mobile telecommunications customer and

(ii) within the licensed service area of the home service provider.

(A) Any charge for a service or property billed by or for a mobile telecommunications customer’s home service provider shall be deemed to be provided by such mobile telecommunications customer’s home service provider.
(B) Charges for mobile telecommunications service that are provided or deemed to be provided by a mobile telecommunications customer’s home service provider shall be sourced to the taxing jurisdiction where the mobile telecommunications customer’s place of primary use is located, regardless of where the mobile telecommunications service originates, terminates or passes through.

Tax Law section 186-e.1(a) contains identical provisions covering the telecommunications excise tax.

A “home service provider” is a facilities-based carrier or reseller, with which the mobile telecommunications customer contracts for the provision of mobile telecommunications service.

To read more! Sales Tax On Roaming Service In The State of New York Source: InfoTaxSquare Business Documents Filing In All Fifty States!