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!

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!