Sales Tax Registration

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NYS Updates: Enlarged City School District of Troy Increases its Sales and Use Tax on Utility Services Effective September 1, 2010!

Attention Tax Payers:

All persons required to collect sales tax, pay compensating use tax, or both: The Board of Education of the Enlarged City School District of Troy has passed a resolution increasing its 2% sales tax on consumer utilities to 3% effective September 1, 2010. This change will affect your tax collections and payments if you make taxable sales or deliveries to customers, or if you make taxable uses, within the Enlarged City School District of Troy.

Therefore, beginning September 1, 2010, all taxable sales and deliveries of consumer utilities made within the Enlarged City School District of Troy are subject to tax at the 3% rate, except as otherwise provided by the special transitional provisions.

To Read More Updates Please Click Here To Our Knowledge Center!

Source: Business Documents Filings In All 50 States!

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

State of North Dakota-Sales Tax-Grocery Stores, Convenience-Stores & Delicatessens

Food and Food Ingredients

Generally food and food ingredients sold for domestic home consumption qualifies for the sales tax exemption. While most grocery store sales of food and food ingredients are tax exempt, sales tax is due on prepared food for immediate consumption, gross receipts from sales of candy, chewing gum, soft drinks and other generally recognized soft drinks (including fruit drinks which contain 50% or less fruit juice). Bottled drinking water (including mineral, carbonated, and distilled water) is considered food and is exempt from tax. However, if the water contains natural or artificial sweeteners then it is considered a soft drink excluded from the definition of food and is taxable. Flavored water would be a food unless it also includes a natural or artificial sweetener. Ice is generally considered food and is generally not taxable, including ice sold by grocery, convenience, or similar stores.

Food Stamp Purchases

When purchases are made using Food Stamps or WIC food vouchers, no sales tax applies to such purchases.

Nontaxable Food Products

• Baby food and formulas (including infant and adult formula)
• Baking ingredients (including baking chocolate)
• Bakery items (including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, pies, tarts, muffins, bars, cookies, and tortillas)
• Baking soda other forms of leavening agents
• Beverages containing more than 50% fruit or vegetable juice or containing milk, milk products, or milk substitutes
• Broths and bouillons
• Cereal products
• Cocoa and cocoa powdered drink mixes
• Coconut (whether whole, shredded, sweetened, processed, or raw)
• Coffee and coffee substitutes (beans, grounds, freeze dried, bags, and instant only)
• Condiments and spices
• Cooking oils
• Deli items when sold unheated by weight or volume as a single item
• Deli trays that only contain exempt items
• Eggs and egg products or substitutes
• Extracts and flavorings intended as a cooking ingredient
• Fish and fish products (including all other forms of seafood)
• Flour
• Food coloring
• Food sold by a seller whose primary NAICS classification
• is manufacturing in sector 311, except sub sector 3118 (bakeries)
• Food sold by weight or volume as a single item
• Frozen drink mix
• Frozen foods and dinners
• Fruit and fruit products (whether fresh, frozen, cannedor,dehydrated, excludes items on salad bars)
• Gelatins (whether powdered or prepared)
• Granola
• Gravy and gravy mixes
• Honey
• Ice
• Ice cream (including toppings and novelties)
• Jams, jellies and preserves
• Ketchup
• Marshmallows (including marshmallow crème)
• Meat and meat products, including beef jerky
• Meat seasoning
• Milk and milk products
• Mustard
• Nuts (including salted, but not chocolate candied, or honey coated nuts)
• Oleomargarine
• Olive oil
• Peanut butter
• Pepper
• Pickles
• Popsicles
• Powdered drink mixes (including sweetened)
• Pudding/gelatin
• Relishes
• Salad dressings and mixes
• Salt
• Sauces
• Sherbets and sorbets
• Shortenings
• Soups
• Soy products
• Snack chips and pieces (including potato chips, corn chips, pork rinds, pretzels, and trail mixes)
• spreads
• Sugar, sugar products, and sugar substitutes
• Syrups (including molasses and dietetic syrups and similar products)
• Tea (bags, leaves, or instant only)
• Vegetables and vegetable products (whether fresh,frozen,canned or dehydrated, excludes items on salad bars)
• Vegetable oils
• Water (including carbonated, distilled, and mineral)

Taxable Products

• Alcoholic beverages
• Aspirin
• Bird feed
• Breath mints
• Candy and confections
• Canning supplies
• Chewing gum
• Chocolate covered nuts, candy coated nuts, and honey roasted nuts
• Cigarettes and tobacco products
• Cleaning products and supplies
• Cocktail mixes (liquid)
• Cooking utensils
• Cosmetics
• Cough drops
• Dietary supplements (including energy bars containing “supplemental facts” box)
• Film and film processing
• Flowers
• Fruit juice containing 50% or less juice content
• Garden seed
• Ice used as a refrigerant and not sold at a grocery, convenience or similar store
• Laundry products and supplies
• Laxatives
• Light bulbs
• Lozenges
• Magazines and books
• Over the counter medicine (nonprescription)
• Paper and tin products
• Personal hygiene products
• Pet food
• Plants
• Prepaid telephone calling cards
• Prepared foods, including heated foods such as pizza, sandwiches, hot dogs, barbeques, bratwurst, nachos and cheese, sandwiches prepared by customer or at customer’s request
• Rehydration solutions (Pedialyte, Ceralyte, Infalyte, etc.)
• Soap and soap products
• Soft drinks
• Sports/Energy drinks
• Tonics
• Toothpaste and mouthwash
• Vegetable juice containing 50% or less juice content
• Video rentals
• Vitamins
• Water softener salt
• Water-sweetened (including artificially)
• Food sold in a heated state or heated by the seller is taxable.
• Food sold with eating utensils, provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or straws is taxable.

Candy, Dietary Supplements, and Soft Drinks

Candy

Sales of candy are taxable, and are defined as preparations of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. Candy does not include any preparation containing fl our or any item requiring refrigeration.

Dietary Supplements

Dietary Supplements are taxable, and means and product intended to supplement the diet. The easiest method for determining if a product is a dietary supplement subject to tax is to look for a product label containing a “supplemental facts” box. If the label contains a “nutrition facts” box, the product is regarded as a food and is exempt from tax.

Soft Drinks

Soft drinks are taxable, and include nonalcoholic beverages that contain natural or artificial sweeteners, pop and fruit drinks or fruit punches that are fifty percent (50%) or less juice by volume. Products that are not soft drinks are those containing milk or milk products, soy, rice, or similar milk substitutes, or that contain greater than fifty percent (50%) vegetable or fruit juice by volume.

The deposit, which may be required on returnable bottles or containers, is exempt from sales tax.

Prepared Food

Prepared foods remain subject to sales tax. Prepared food includes food sold in a heated state or heated by the seller, or food that is prepared by mixing or combining two or more food ingredients for sale as a single item, or food sold with eating utensils, such as plates, knives, forks, spoons, glasses, cups, napkins, or straws provided by the seller. Food sold in an unheated state by weight or volume as a single item is taxable only if sold with eating utensils.

Taxable food includes self-service food such as that provided by salad bars and drink islands. Taxable food also includes meals, sandwiches, or other food intended for consumption on or near the seller’s premises.

All food sold and catered is regarded as prepared food subject to tax.

Bakery items are not taxable unless they are sold with eating utensils by the seller or sold in a heated state.

Discount Coupons

When a manufacturer, processor, or wholesaler issues a coupon entitling a purchaser to credit on the item purchased, tax is due on the total gross selling price.

Example: If a manufacturer, processor, or wholesaler issues a coupon entitling the holder to a credit allowance of one dollar on the purchase of its product from a retailer, sales tax is computed as follows:

Regular price 5.00

Sales tax at 5 percent .25

Subtotal 5.25

Credit for coupon 1.00

Amount due from purchaser 4.25

When a retailer issues a coupon entitling the purchaser to a discounted price on an item and when the retailer received no reimbursement from a manufacturer, processor, or wholesaler, sales tax is due only on the discounted price. Example: If a retailer issues a coupon entitling the holder to a credit allowance of one dollar on the purchase of a product, sales tax is computed by the retailer as follows:

Regular price 5.00

Credit for coupon 1.00

Subtotal 4.00

Sales tax at 5 percent .20

Amount due from purchaser 4.20

Sales to Churches and Other Religious Organizations

Churches and other religious organizations are subject to sales and use tax in North Dakota and are required to pay sales tax on all items purchased for final use except for food and other items expressly exempt from North Dakota sales or use tax. These organizations must pay sales tax on maintenance supplies and any miscellaneous supplies for final use by the church or religious group.

Sales to Schools - Public and Private

Sales of food supplies and groceries to either a public or private school for the operation of a school lunch program are exempt from sales tax. Similarly, cleaning material and supplies, such as soap, bleach, disinfectant, paper towels, toilet tissue and similar items, are exempt when sold to either a public school or a private, nonprofit school or college.

Freight, Delivery, or Other Transportation Charges

Freight, delivery, and other transportation charges, including shipping and handling charges, are considered to be part of the selling price. If the sale is taxable, the freight, delivery, and other transportation charges are taxable. If the product being delivered is exempt from sales tax, then the freight, delivery, and other transportation charges are also exempt.

Delivery charges billed directly to the customer by the delivery services that are not making the sale of tangible personal property remain exempt from sales and use tax.

Purchases Subject to Tax

All stores are required to pay sales or use tax on purchases of equipment and supplies for their own use. Examples of these items include: cash registers, file cabinets, light bulbs, paper towels, cash register tapes. If these items are purchased from a North Dakota supplier, the North Dakota sales tax should be paid directly to the supplier. If these items are purchased from a supplier who fails to charge North Dakota sales tax or from a supplier who does not have a North Dakota sales and use tax permit, the buyer must include the cost of such purchases as “items subject to use tax” on the North Dakota sales and use tax return and remit use tax on those items to the Office of State Tax Commissioner.

Food and food products given as samples to consumers for consumption on the premises of a food store are exempt from sales and use tax. The disposable paper products and tableware used to provide the exempt samples to consumers are also exempt from sales and use tax. Samples or giveaways of pop and candy continue to be subject to tax based upon the cost of the products to the food store and are to be included as “items subject to use tax” on the tax return.

To Read More: State of North Dakota-Sales Tax-Grocery Stores, Convenience-Stores & Delicatessens

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.

State of Pennsylvania-Tax Exempt Sales!

TAX EXEMPT SALES

The following sales are not subject to tax:

The services of repairing, altering, mending, pressing, fitting, dyeing, laundering, dry cleaning or cleaning wearing apparel including formal wear and shoes. Alterations on formal wear, when purchased in conjunction with the original formal wear purchase, are taxable. The services of laundering or dry cleaning of wearing apparel or household goods when performed by coin operated equipment. Residential use of steam; natural, manufactured and bottled gas; fuel oil; electricity; basic telephone service and subscriber line charges. Gasoline on which Liquid Fuels or Fuel Use Tax is paid. Wrapping supplies when use is incidental to delivery of property. Drugs or medical supplies (See Publication), Coal Grocery store food, Water Wearing apparel, except formal apparel, sporting goods and clothing and real or imitation fur articles, Newspapers of general circulation that are qualified to carry a legal advertisement,Caskets, burial vaults and grave markers, Flags of the United States and Pennsylvania,Textbooks for use in schools.

To Read More: State of Pennsylvania-Tax Exempt Sales!

Source: Business Document Filling in All 50 States.

State of Pennsylvania- Hotel Occupancy Tax Exemptions!

State of Pennsylvania- Hotel Occupancy Tax Exemptions!

After the completion of 30 consecutive days involving occupancy of a room or rooms in a hotel, an occupant is considered to be a permanent resident and is not required to pay Hotel Occupancy Tax.

The occupancy of a room or rooms by an ambassador, minister, or other diplomatic representative of a foreign government properly accredited by the U.S. Government is not subject to tax.

The occupancy of a room or rooms by employees or representatives of the U.S. Government is subject to tax unless the employee is on official business, provides the required supervisory approved documentation and the rent is paid by the U.S.Government.

To Read More : State of Pennsylvania- Hotel Occupancy Tax Exemptions!

Source: Business Documents Filling in All 50 States

State of Pennsylvania-Hotel Occupancy Tax!

Hotel Occupancy Tax is imposed upon the rent paid for the occupancy of a room or rooms in a hotel within the Commonwealth. The term hotel is defined as a building or buildings in which the public may,for a consideration, obtain sleeping accommodations. The term hotel shall not include any charitable, educational or religious summer camp for children, hospital or nursing home. An additional local Hotel Occupancy Tax is imposed on the occupancy of rooms in hotels within a county or city which imposes a local tax. Hotel Occupancy Taxes are in addition to any other room rental taxes imposed.

To Read More: State of Pennsylvania-Hotel Occupancy Tax!

Source: Business Documents Filing In All 50 States

Indiana Secretary of State alerts mortgage professionals of impending test deadline !

Mortgage loan originators and principal managers in Indiana must pass exam by July 1 or risk losing license; only 41 percent have passed to date

(Indianapolis) – Indiana Secretary of State Todd Rokita is alerting Hoosier mortgage professionals of an impending deadline requiring all mortgage loan originators and principal managers to pass the National Component SAFE Test by July 1, 2010.

“It is critical that all mortgage professionals in the state be aware of the July 1 deadline,” said Secretary Rokita. “My office is reaching out to all mortgage loan originators and principal managers to let them know they must take action in order to maintain their license.”

By July 1, 2010, all mortgage loan originators and principal managers must pass the National Component SAFE Test. The test is mandatory based on the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). The SAFE Act does not allow for any waiver of the test. There is a 30 day waiting period after each unsuccessful attempt at taking the test.

Secretary Rokita’s Indiana Securities Division began sending communications to licensed mortgage loan originators and principal managers in February to alert them of the upcoming deadline. Indiana has 1,086 licensed mortgage loan originators and principal managers. As of May 18, 2010, only 41 percent have passed the SAFE Test.

If a mortgage loan originator or principal manager fails to pass the SAFE Test by July 1, his or her license will be revoked. In accordance with Indiana law, if a license is revoked the Indiana Securities Commissioner must deny all future license applications by that individual.

Mortgage loan originators and principal managers also have the option of surrendering their licenses with the Securities Division prior to July 1, 2010, in order to avoid revocation of the license for failure to pass the exam.

To read more! Indiana Secretary of State alerts mortgage professionals of impending test deadline ! Source: InfoTaxSquare Business Documents Filing In All Fifty 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!

Why should I register to collect sales tax for another state?

When a state revenue agency discovers your customer’s untaxed purchase, it will bill the customer for the use tax, penalty, and interest. Use tax is also due when the purchaser pays sales tax, but the item is brought into a state with a higher rate. For example, if you charge sales tax at Florida’s rate, but the customer lives in a state with a higher rate, that state can bill your customer for the difference.

When your customer receives a bill, a dispute could arise over whose responsibility it is to collect the tax. Even though you may not be technically liable, you provide a service to your customers when you voluntarily register and collect tax. They do not have to worry about paying tax to the other state.

To read more! Why should I register to collect sales tax for another state? 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!

Excise Tax On Tanning Services

WASHINGTON — The Internal Revenue Service today issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.

The regulations were published today in the Federal Register.

In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

The tax does not apply to photo therapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.

To read more! Excise Tax On Tanning Services Source: InfoTaxSquare Business Documents Filing In All Fifty States!

What is sales tax?

Sales tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. In other words a sales tax is a tax on the end-purchase of a good, so it normally does not apply if a sale is for re-sale or for subsequent processing. Sales tax normally a certain percentage that is added onto the price of a good or service that is purchased.

Your sales tax responsibilities as a new business owner, whether you start a business or buy an existing business, will vary depending on the type of organization or entity you operate. Besides state level, estimation of sales tax is also done on municipal or county levels. Payment of state sales tax depends on your sales and your state's regulations.

Normally it is the consumers who are burdened with sales tax. The re-sellers on the other hand, are exempted from sales tax, provided they do not use the goods on which sales tax is levied.

Source Infotaxsqaure