2023 New York Laws › TAX - Tax › Article 28 - Sales and Compensating Use Taxes › Part 2 - Imposition of Taxes › 1105 - Imposition of Sales Tax.

§  1105.  Imposition  of  sales tax. On and after June first, nineteen
hundred seventy-one, there is hereby imposed and there shall be  paid  a
tax of four percent upon:
(a) The receipts from every retail sale of tangible personal property,
except as otherwise provided in this article.
(b)  (1) The receipts from every sale, other than sales for resale, of
the following: (A) gas, electricity, refrigeration and steam,  and  gas,
electric,  refrigeration and steam service of whatever nature, including
the transportation, transmission or distribution of gas or  electricity,
even  if sold separately; (B) telephony and telegraphy and telephone and
telegraph service of whatever nature except interstate and international
telephony and telegraphy and telephone and telegraph service and  except
any  telecommunications  service the receipts from the sale of which are
subject to tax under paragraph two of this subdivision; (C) a  telephone
answering service; and (D) a prepaid telephone calling service.
(2)  The receipts from every sale of mobile telecommunications service
provided by a home service provider, other than sales for  resale,  that
are  voice  services,  or  any  other  services  that  are taxable under
subparagraph (B) of paragraph one of this subdivision, sold for a  fixed
periodic  charge (not separately stated), whether or not sold with other
services.
(3) The tax  imposed  pursuant  to  this  subdivision  is  imposed  on
receipts  from  charges for intrastate mobile telecommunications service
of whatever  nature  in  any  state  if  the  mobile  telecommunications
customer's place of primary use is in this state.
(4)  (A)  For the purpose of subparagraph (B) of paragraph one of this
subdivision, receipts from the sale of telephony  or  telephone  service
constituting the actual delivery of telephony or telephone service under
a  prepaid  telephone calling service (for instance, when the receipt is
represented by a debit to a prepaid account) shall be excluded from  the
receipts subject to tax under such subparagraph; and (B) for purposes of
subparagraph (B) of paragraph one and paragraph two of this subdivision,
a  particular  sale  of  telephony or telephone service to a vendor that
resells such telephony or telephone service as a component of a  prepaid
telephone calling service shall be deemed a sale for resale of telephony
or telegraph service.
(c)  The receipts from every sale, except for resale, of the following
services:
(1)  The  furnishing  of  information  by  printed,  mimeographed   or
multigraphed  matter  or by duplicating written or printed matter in any
other  manner,  including  the  services  of  collecting,  compiling  or
analyzing  information  of  any  kind  or  nature and furnishing reports
thereof to other persons, but excluding the  furnishing  of  information
which is personal or individual in nature and which is not or may not be
substantially  incorporated  in  reports furnished to other persons, and
excluding the services of advertising or other agents, or other  persons
acting  in  a  representative capacity, and information services used by
newspapers, electronic news services, radio broadcasters and  television
broadcasters  in the collection and dissemination of news, and excluding
meteorological services.
(2)  Producing,  fabricating,  processing,  printing   or   imprinting
tangible  personal  property,  performed  for  a  person who directly or
indirectly furnishes the tangible personal property,  not  purchased  by
him for resale, upon which services are performed.
(3) Installing tangible personal property, excluding a mobile home, or
maintaining,   servicing   or   repairing  tangible  personal  property,
including a mobile home, not held for sale  in  the  regular  course  of
business, whether or not the services are performed directly or by means

of coin-operated equipment or by any other means, and whether or not any
tangible  personal  property  is  transferred  in conjunction therewith,
except:
(i) such services rendered by an individual who is engaged directly by
a  private home owner or lessee in or about his residence and who is not
in a regular trade or business offering his services to the public; and
(ii) any receipts from laundering, dry-cleaning,  tailoring,  weaving,
pressing, shoe repairing and shoe shining; and
(iii)  for  installing property which, when installed, will constitute
an addition or capital improvement to real property, property  or  land,
as  the  terms  real  property, property or land are defined in the real
property tax  law  as  such  term  capital  improvement  is  defined  in
paragraph  nine of subdivision (b) of section eleven hundred one of this
chapter; and
(iv) such services rendered with respect  to  commercial  vessels  and
property  used  by  or  purchased  for  the use of such vessels, as such
vessels and property are specified in paragraph eight of subdivision (a)
of section eleven hundred fifteen of this article; and
(v) such  services  rendered  with  respect  to  commercial  aircraft,
machinery  or equipment and property used by or purchased for the use of
such aircraft as such aircraft, machinery or equipment, and property are
specified in paragraph twenty-one of subdivision (a) of  section  eleven
hundred fifteen of this article; and
(vi) such services rendered with respect to tangible personal property
for  use  or consumption predominantly either in the production for sale
of tangible personal property  by  farming  or  in  a  commercial  horse
boarding  operation,  or  in both, as such tangible personal property is
specified in paragraph six of subdivision (a) of section eleven  hundred
fifteen of this article.
(vii)  such  services  rendered  with  respect  to fishing vessels and
property used by or purchased for  such  vessels  as  such  vessels  are
specified  in paragraph twenty-four of subdivision (a) of section eleven
hundred fifteen of this article.
(viii) such services rendered with respect to railroad  rolling  stock
primarily  engaged  in  carrying  freight  in  intrastate, interstate or
foreign commerce, but not  including  any  charge  for  parts  or  other
tangible  personal  property whether 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 services in conjunction
with the performance of the services subject to the tax.
(ix) such services rendered with respect to tangible property used  or
consumed directly and predominantly in the production for sale of gas or
oil  by  manufacturing,  processing,  generating,  assembling, refining,
mining, or extracting.
(x) such services rendered  with  respect  to  property  described  in
paragraph  twelve-a of subdivision (a) of section eleven hundred fifteen
of this article.
* (xi) Such services rendered with respect to  property  described  in
paragraph twelve-b of section eleven hundred fifteen of this article.
* NB Expired September 1, 2003
Provided,  however,  that  nothing  contained  in this paragraph three
shall be construed to exclude from tax under  this  paragraph  or  under
subdivision  (b) of this section any charge, made by a person furnishing
service subject to tax  under  subdivision  (b)  of  this  section,  for
installing  property  at  the  premises of a purchaser of such a taxable
service for use in connection with such service.
(4) Storing all tangible personal property not held for  sale  in  the
regular  course  of  business  and  the  rental of safe deposit boxes or
similar space.
(5)  Maintaining,  servicing  or  repairing real property, property or
land, as such terms are defined in the real property  tax  law,  whether
the services are performed in or outside of a building, as distinguished
from  adding  to or improving such real property, property or land, by a
capital improvement as such  term  capital  improvement  is  defined  in
paragraph  nine of subdivision (b) of section eleven hundred one of this
article, but excluding (i) services rendered by an individual who is not
in a regular trade or business offering his services to the public, (ii)
services rendered directly with respect to real  property,  property  or
land  used  or consumed directly and predominantly in the production for
sale of gas or oil by manufacturing, processing, generating, assembling,
refining, mining, or extracting, (iii) services rendered with respect to
real property, property or land used or consumed predominantly either in
the production of tangible personal property, for sale, by farming or in
a commercial horse boarding operation, or in both and (iv)  services  of
removal  of  waste  material  from  a  facility  regulated as a transfer
station or construction and demolition debris processing facility by the
department  of  environmental  conservation,  provided  that  the  waste
material to be removed was not generated by the facility.
(6)  Providing  parking,  garaging  or  storing  for motor vehicles by
persons operating a garage  (other  than  a  garage  which  is  part  of
premises  occupied  solely  as  a  private  one or two family dwelling),
parking lot or other place of business  engaged  in  providing  parking,
garaging or storing for motor vehicles provided, however, this paragraph
shall  not  apply  to  such  facilities  owned  and operated by a public
corporation, as defined by section sixty-six of the general construction
law, other than a public benefit corporation, as defined by such section
sixty-six, created by interstate compact  or  at  least  half  of  whose
members  are appointed by the governor, or any agency or instrumentality
of a municipal corporation or district corporation as  defined  by  such
section sixty-six. Provided, however, receipts for such services paid to
a  homeowner's association by its members or receipts paid by members of
a homeowner's association to a person leasing the parking facility  from
the  homeowner's  association shall not be subject to the tax imposed by
this  paragraph.  For  purposes  of  this   paragraph,   a   homeowner's
association  is  an  association  (including  a  cooperative  housing or
apartment  corporation)  (i)  the  membership  of  which  is   comprised
exclusively  of  owners  or  residents  of  residential  dwelling units,
including owners of units in a condominium, and  including  shareholders
in  a cooperative housing or apartment corporation, where such units are
located in a defined geographical area such as a housing development  or
subdivision  and  (ii)  which  owns or operates a garage, parking lot or
other place of  business  engaged  in  providing  parking,  garaging  or
storing  for motor vehicles located in such area for use (whether or not
exclusive) by such owners or residents.
(7) Interior decorating and designing services,  (whether  or  not  in
conjunction  with the sale of tangible personal property), by whomsoever
performed, including interior decorators and  designers,  architects  or
engineers;  notwithstanding  the  foregoing,  such  services  shall  not
include services which consist  of  the  practice  of  architecture,  as
defined  in  section  seventy-three hundred one of the education law, or
the practice of engineering, as defined in section  seventy-two  hundred
one  of the education law, if the services are performed by an architect
or engineer having a license or permit under the education law.
* (8) Protective and detective services, including,  but  not  limited
to,  all  services provided by or through alarm or protective systems of
every  nature,  including,  but  not  limited  to,  protection   against
burglary,  theft,  fire,  water  damage or any malfunction of industrial
processes or any other malfunction of or damage to property or injury to
persons,  detective agencies, armored car services and guard, patrol and
watchman services of every nature other than  the  performance  of  such
services by a port watchman licensed by the waterfront commission of New
York harbor, whether or not tangible personal property is transferred in
conjunction therewith.
* NB Effective until June 30, 2024
* (8)  Protective  and  detective services, including, but not limited
to, all services provided by or through alarm or protective  systems  of
every   nature,  including,  but  not  limited  to,  protection  against
burglary, theft, fire, water damage or  any  malfunction  of  industrial
processes or any other malfunction of or damage to property or injury to
persons,  detective agencies, armored car services and guard, patrol and
security services of every nature other than  the  performance  of  such
services  by  a  security  officer  licensed  by the New York Waterfront
Commission or the waterfront commission of New York harbor,  whether  or
not tangible personal property is transferred in conjunction therewith.
* NB Effective June 30, 2024
(9)  (i) The furnishing or provision of an entertainment service or of
an information service (but not an information service  subject  to  tax
under  paragraph one of this subdivision), which is furnished, provided,
or delivered by  means  of  telephony  or  telegraphy  or  telephone  or
telegraph service (whether intrastate or interstate) of whatever nature,
such  as  entertainment  or information services provided through 800 or
900 numbers or mass announcement  services  or  interactive  information
network  services.  Provided,  however,  that  in no event (i) shall the
furnishing or provision of an information service be  taxed  under  this
paragraph  unless  it  would  otherwise  be  subject  to  taxation under
paragraph one of this subdivision  if  it  were  furnished  by  printed,
mimeographed or multigraphed matter or by duplicating written or printed
matter  in  any  other  manner  nor  (ii)  shall  the provision of cable
television service to customers be taxed under this paragraph.
(ii) Notwithstanding the rate  and  date  set  forth  in  the  opening
undesignated  paragraph  of this section and notwithstanding the opening
undesignated paragraph of  this  subdivision,  on  and  after  September
first,  nineteen  hundred  ninety-three,  in  addition  to any other tax
imposed under this section, and in addition to  any  other  tax  or  fee
imposed  under  any  other provision of law, there is hereby imposed and
there shall be paid an additional tax at the rate of five  percent  upon
the  receipts  which  are  subject to tax under subparagraph (i) of this
paragraph  on  the  furnishing  or  provision  of  an  entertainment  or
information  service which is received by the customer exclusively in an
aural manner. Such additional tax shall not be imposed by section eleven
hundred seven, eleven hundred eight  or  eleven  hundred  nine  of  this
article  and  shall  not  be  included  among the taxes authorized to be
imposed pursuant  to  the  authority  of  article  twenty-nine  of  this
chapter.
(10)  Transportation  service,  whether  or  not any tangible personal
property is transferred in  conjunction  therewith,  and  regardless  of
whether  the charge is paid in this state or out of state so long as the
service is provided in this state.
Wages, salaries and other compensation  paid  by  an  employer  to  an
employee  for  performing  as  an  employee  the  services  described in

paragraphs (1) through (9) of this  subdivision  (c)  are  not  receipts
subject to the taxes imposed under such subdivision.
(d)  (i) The receipts from every sale, other than sales for resale, of
beer, wine or other alcoholic  beverages  or  any  other  drink  of  any
nature,  or  from  every  sale, other than sales for resale, of food and
drink of any nature or of food alone, when sold in  or  by  restaurants,
taverns or other establishments in this state, or by caterers, including
in  the  amount  of  such  receipts any cover, minimum, entertainment or
other charge made to patrons or customers (except those  receipts  taxed
pursuant to subdivision (f) of this section):
(1) in all instances where the sale is for consumption on the premises
where sold;
(2)  in  those instances where the vendor or any person whose services
are arranged for by the vendor, after the delivery of the food or  drink
by  or  on  behalf of the vendor for consumption off the premises of the
vendor, serves or assists in serving, cooks,  heats  or  provides  other
services with respect to the food or drink; and
(3)  in  those  instances  where  the  sale  is made through a vending
machine that is activated by use of coin, currency, credit card or debit
card (except the sale of drinks in a heated state made  through  such  a
vending  machine)  or is for consumption off the premises of the vendor,
except where food (other than sandwiches) or drink or both are (A)  sold
in  an  unheated  state  and,  (B)  are  of  a  type  commonly  sold for
consumption off the  premises  and  in  the  same  form  and  condition,
quantities  and packaging, in establishments which are food stores other
than those principally engaged in selling foods prepared and ready to be
eaten.
(ii) The tax imposed by this subdivision shall not apply to:
(A) food or drink which is sold to an air line for  consumption  while
in flight;
(B) food or drink sold to a student of a nursery school, kindergarten,
elementary  or  secondary school at a restaurant or cafeteria located on
the premises of such a school, or food or drink, other than beer,  wine,
or  other  alcoholic  beverages,  sold  at a restaurant, tavern or other
establishment located on the premises of  a  college,  university  or  a
school  (other  than  a  nursery  school,  kindergarten,  elementary  or
secondary school) to a student enrolled therein who purchases such  food
or  drink  under  a contractual arrangement whereby the student does not
pay cash at the time he is  served,  provided  the  school,  college  or
university  described  in  this  subparagraph  is  operated by an exempt
organization described in subdivision  (a)  of  section  eleven  hundred
sixteen,  or  is  created,  incorporated, registered, or licensed by the
state legislature or pursuant to the education law or the regulations of
the commissioner of education, or is incorporated by the regents of  the
university of the State of New York or with their consent or the consent
of  the  commissioner  of  education  as provided in section two hundred
sixteen of the education law; and
(C) Sales by  a  brewery  licensed  under  section  fifty-one  of  the
alcoholic beverage control law, or a farm brewery licensed under section
fifty-one-a  of  such  law,  of  no  more  than four samples of beer not
exceeding four fluid ounces each, and each sample shall be  a  different
beer  than  the  others.  Only  a  customer's first purchase during each
calendar day  at  each  licensed  entity  shall  be  exempt  under  this
subparagraph.
(e)  (1) The rent for every occupancy of a room or rooms in a hotel in
this state, except that  the  tax  shall  not  be  imposed  upon  (i)  a
permanent  resident, or (ii) where the rent is not more than at the rate
of two dollars per day.
(2) Except as provided in subdivision (r) of  section  eleven  hundred
eleven   of  this  part,  when  occupancy  is  provided,  for  a  single
consideration, with property, services, amusement charges, or any  other
items,  the  separate  sale  of  which  is not subject to tax under this
article,  and  the rent paid for such occupancy does not qualify for the
exemption in subdivision (kk) of section eleven hundred fifteen of  this
article,  the  entire  consideration shall be treated as rent subject to
tax under paragraph one of this  subdivision;  provided,  however,  that
where the amount of the rent for occupancy is stated separately from the
price  of such property, services, amusement charges, or other items, on
any sales slip, invoice, receipt, or other statement given the occupant,
and such rent is reasonable in relation to the value of  such  property,
services,  amusement charges or other items, only such separately stated
rent will be subject to tax under paragraph one of this subdivision.
(f) (1) Any admission charge where such admission charge is in  excess
of  ten  cents to or for the use of any place of amusement in the state,
except charges for admission to combative sports which charges are taxed
under any  other  law  of  this  state,  or  dramatic  or  musical  arts
performances,  or  live circus performances, or motion picture theaters,
and except charges to a patron for admission to, or use  of,  facilities
for  sporting  activities  in  which such patron is to be a participant,
such as bowling alleys and swimming pools. For  any  person  having  the
permanent  use  or  possession of a box or seat or a lease or a license,
other than a season ticket, for the use of a box or seat at a  place  of
amusement,  the  tax shall be upon the amount for which a similar box or
seat is sold for each performance or exhibition at which the box or seat
is used or reserved by the holder, licensee or lessee, and shall be paid
by the holder, licensee or lessee.
(2) (i) The dues paid to any social or athletic club in this state  if
the  dues  of  an active annual member, exclusive of the initiation fee,
are in excess of ten dollars per year, and on the initiation fee  alone,
regardless of the amount of dues, if such initiation fee is in excess of
ten  dollars.  Where  the  tax  on  dues  applies  to any such social or
athletic club, the tax shall be paid by all members, other than honorary
members, thereof regardless of the amount of their dues,  and  shall  be
paid  on all dues or initiation fees for a period commencing on or after
August first, nineteen  hundred  sixty-five.  In  the  case  of  a  life
membership,  the  tax  shall  be upon the amount paid as life membership
dues, however, a life member, other than an honorary member,  paying  an
annual  sales  tax,  based on the dues of an active annual member, shall
continue such payments until the total amount of such tax paid is  equal
to the amount of tax that would have otherwise been due had the tax been
imposed  at the time such paid life membership has been purchased and at
the then applicable rate.
(ii) Dues and initiation fees paid  to  the  following  shall  not  be
subject to the tax imposed by this paragraph:
(A)  A  fraternal  society,  order  or association operating under the
lodge system;
(B) Any fraternal association of students of a college or university;
(C) A homeowners association. For purposes  of  this  subparagraph,  a
homeowners  association  is  an  association  (including  a  cooperative
housing or  apartment  corporation)  (I)  the  membership  of  which  is
comprised  exclusively  of  owners  or residents of residential dwelling
units, including  owners  of  units  in  a  condominium,  and  including
shareholders  in  a  cooperative housing or apartment corporation, where
such units are located in a defined geographical area such as a  housing
development  or  subdivision  and (II) which operates social or athletic

facilities located in such area for use (whether or  not  exclusive)  by
such owners or residents.
(3)  The  amount  paid  as  charges of a roof garden, cabaret or other
similar place in the state.