2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 2 - Imposition of Taxes › 1106 - Transitional Provisions.

§   1106.   Transitional  provisions.  (a)  The  taxes  imposed  under
subdivisions (a), (c) and (d) of section eleven hundred  five  shall  be
paid upon all sales made and services rendered on or after August first,
nineteen  hundred  sixty-five although made on or rendered under a prior
contract, except as provided in section  eleven  hundred  nineteen,  and
except  that  a  delivery or transfer of possession of tangible personal
property made after said date pursuant to an agreement for the  sale  of
said property made before April first, nineteen hundred sixty-five shall
not  be  subject  to  tax  if:  (1)  such agreement for the sale of said
property was made in writing,  (2)  the  particular  item  or  items  of
property  so  sold  or  agreed  to be sold were segregated, before April
first, nineteen hundred sixty-five, from any other similar  property  in
the  possession of the vendor and identified as having been appropriated
to such sale or agreement of sale, and (3) the purchaser, before  August
first,  nineteen  hundred  sixty-five  shall have paid to the vendor not
less than ten percent of the sale price of said property.
(b) The tax imposed under subdivision (b) of  section  eleven  hundred
five  shall  be  paid  with respect to receipts for property or services
sold on or after August first, nineteen hundred sixty-five although made
under a prior contract. Where property or service is sold on a  monthly,
quarterly or other term basis and the bills for such property or service
are  based  on meter readings, the amount received on each bill for such
property or service for a month or other term shall be a receipt subject
to the tax, but such tax shall be  applicable  to  all  bills  based  on
meters  read  on or after August first, nineteen hundred sixty-five only
where more than one-half of the number of days included in the month  or
other  period  billed are days subsequent to July thirty-first, nineteen
hundred sixty-five; provided, however, that where  such  bills  are  for
telephone  or  telegraph  service the tax shall apply to all receipts on
such bills dated on or after August first, nineteen hundred  sixty-five,
for which no previous bill was rendered, excepting, however, charges for
services furnished before the date of the first of such bills.
(c)  The  tax  imposed under subdivision (e) of section eleven hundred
five shall be paid  upon  any  occupancy  on  and  after  August  first,
nineteen  hundred  sixty-five,  although such occupancy is pursuant to a
prior contract, lease or other arrangement. Where  rent  is  paid  on  a
weekly,  monthly  or  other term basis, the rent shall be subject to the
tax imposed under such subdivision (e) to the extent that it covers  any
period  on  and after August first, nineteen hundred sixty-five and such
rent shall be apportioned on the basis of the ratio  of  the  number  of
days  falling  within  said  period  to the total number of days covered
thereby.
(d) Except as otherwise hereinafter provided, the  tax  imposed  under
subdivision  (f)  of  section eleven hundred five shall be applicable to
any admission to or the use  of  facilities  of  a  place  of  amusement
occurring on or after August first, nineteen hundred sixty-five, whether
or not the admission charge has been paid prior to such date, unless the
tickets  were  actually sold and delivered (other than for resale) prior
to August first, nineteen hundred sixty-five to a person  attending  the
performance occurring on or after such date.
(e)  A  refund  or  credit  equal  to  the  amount  of  the  sales  or
compensating use tax paid on  the  sale  or  use  of  tangible  personal
property, under a local law, ordinance or resolution imposed pursuant to
the  authority  of  chapter  eight  hundred seventy-three of the laws of
nineteen  hundred  thirty-four,  as  amended,  or  chapter  two  hundred
seventy-eight  of  the laws of nineteen hundred forty-seven, as amended,
shall be allowed, upon application to the tax commission as provided for
herein, where such property has been used by the purchaser  or  user  in

performing  the  services  subject to tax under paragraphs (1), (2), (3)
and (5) of subdivision (c) of  section  eleven  hundred  five  and  such
property has become a physical component part of the property upon which
the  services  are performed or has been transferred to the purchaser of
the service in conjunction with the performance of the  service  subject
to  tax,  except  that such refund or credit may not exceed the combined
state and local taxes, if any, paid, pursuant to this article and  under
a  tax  imposed pursuant to the authority of article twenty-nine of this
chapter, on the sale or use of the service in connection with which such
property was used. Any refund or credit under this subdivision shall  be
paid  out  of  or charged against the sales and use tax revenues derived
from the taxes imposed under this article and pursuant to the  authority
of  article  twenty-nine  of  this chapter in the same proportion as the
respective rates of such state and local taxes bear to the combined rate
of both such taxes. The amount to be paid  out  of  or  charged  against
sales  and use tax revenues of localities derived from the taxes imposed
pursuant to the authority of article twenty-nine of this  chapter  shall
be  paid  out  of or charged against such revenues of the locality which
imposes the tax on the sale or use of the  service  in  connection  with
which  such  property  was used. An application for the refund or credit
provided for herein may not be made until the tax on the sale or use  of
the service has been reported to the tax commission in the return of the
vendor or the return of the customer, where such return is required, and
such  application  must  be made within three years of the time such tax
was payable to the tax commission. Where an application for  credit  has
been filed, the applicant may immediately take such credit on the return
which  is due coincident with or immediately subsequent to the time that
he files his application for credit. However, the taking of  the  credit
on  the return shall be deemed to be part of the application for credit.
The procedure for granting or denying such applications  for  refund  or
credit  and  review  of  such  determinations  shall  be  as provided in
subdivision (b) of section eleven hundred thirty-nine. No interest shall
be allowed or paid upon any refund made or credit  allowed  pursuant  to
this subdivision.
(f)  With  respect  to  the  additional  tax  of  one  percent imposed
effective April first, nineteen hundred sixty-nine,  the  provisions  of
subdivisions  (a),  (b),  (c), (d) and (e) of this section apply, except
that for the purposes  of  this  subdivision,  all  references  in  said
subdivisions  (a),  (b),  (c)  and (d) to August first, nineteen hundred
sixty-five shall be read as referring to April first,  nineteen  hundred
sixty-nine,  all  references  in  said  subdivision  (a) to April first,
nineteen hundred sixty-five shall  be  read  as  referring  to  December
first,   nineteen   hundred  sixty-eight,  and  the  reference  in  said
subdivision (b) to July thirty-first, nineteen hundred sixty-five  shall
be read as referring to March thirty-first, nineteen hundred sixty-nine.
Nothing  herein contained shall be deemed to exempt from tax at the rate
in  effect  prior  to  April  first,  nineteen  hundred  sixty-nine  any
transaction  which  may  not  be  subject  to the additional tax imposed
effective on that date.
(g) With  respect  to  the  additional  tax  of  one  percent  imposed
effective  June  first,  nineteen hundred seventy-one, the provisions of
subdivisions (a), (b), (c), (d) and (e) of this  section  apply,  except
that  for  the  purposes  of  this  subdivision,  all references in said
subdivisions (a), (b), (c) and (d) to  August  first,  nineteen  hundred
sixty-five  shall  be  read as referring to June first, nineteen hundred
seventy-one, all references in said  subdivision  (a)  to  April  first,
nineteen  hundred  sixty-five  shall  be  read  as referring to February
first,  nineteen  hundred  seventy-one,  and  the  reference   in   said

subdivision  (b) to July thirty-first, nineteen hundred sixty-five shall
be read as referring to May thirty-first, nineteen hundred  seventy-one.
Nothing  herein contained shall be deemed to exempt from tax at the rate
in  effect  prior  to  June  first,  nineteen  hundred  seventy-one  any
transaction which may not be  subject  to  the  additional  tax  imposed
effective on that date.
(h)  With  respect to the tax imposed under subdivision (a) of section
eleven hundred five on retail sales of floor covering, such  as  carpet,
carpet  padding, linoleum and vinyl roll flooring, carpet tile, linoleum
tile and vinyl tile, made  on  or  after  the  effective  date  of  this
subdivision,  the  tax  imposed  under subdivision (c) of section eleven
hundred five on the service of installing floor covering rendered on  or
after  such  effective  date  and the compensating use tax imposed under
section eleven hundred ten on taxable uses of floor  covering  occurring
on  or  after  such effective date, the provisions of subdivision (a) of
this section apply, except that for the purposes  of  this  subdivision,
all references in said subdivision (a) to August first, nineteen hundred
sixty-five,  shall  be  read  as referring to the effective date of this
subdivision and all references in said subdivision (a) to  April  first,
nineteen hundred sixty-five, shall be read as referring to the date four
months  prior  to such effective date. Nothing herein contained shall be
deemed to change the taxable status of any sale or use which occurred or
service which was rendered prior to such effective date.
(i) The taxes imposed under  paragraph  five  of  subdivision  (c)  of
section  eleven  hundred  five  with  respect  to  interior cleaning and
maintenance services performed on a regular contractual basis for a term
of not less than thirty days and under paragraphs six through  eight  of
such  subdivision  shall be paid with respect to receipts from all sales
of services rendered after May thirty-first,  nineteen  hundred  ninety,
although rendered under a prior contract.
(j)  (i)  The  tax imposed under subparagraph (i) of paragraph nine of
subdivision (c) of section  eleven  hundred  five  shall  be  paid  with
respect  to  receipts  from  all sales of services rendered after August
thirty-first, nineteen hundred ninety, although rendered under  a  prior
contract. Nothing herein contained shall be deemed to change the taxable
status  of  any  service  which  was  rendered prior to September first,
nineteen hundred ninety.
(ii) The tax imposed under subparagraph  (ii)  of  paragraph  nine  of
subdivision  (c)  of  section  eleven  hundred  five  shall be paid with
respect  to  the  furnishing  or  provision  of  services  after  August
thirty-first,  nineteen  hundred  ninety-three,  although  furnished  or
provided under a prior contract.
(l) The tax imposed by paragraph ten of  subdivision  (c)  of  section
eleven  hundred  five of this part must be paid with respect to receipts
from all sales of services on  or  after  the  effective  date  of  such
paragraph  although  rendered  or  agreed  to  be rendered under a prior
contract. Where a service is sold on a monthly,  quarterly,  yearly,  or
other  term basis, the charge for the service will be subject to the tax
imposed by that paragraph to the extent that the charge is applicable to
any period on or after the date  the  tax  becomes  effective,  and  the
charge  must  be  apportioned on the basis of the ratio of the number of
days falling within the period to the total number of days in  the  full
term or period.