New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter A - Sales And Use Taxes › Part 527 - Taxable Transactions › Section 527.5 - Installing, repairing, servicing and maintaining tangible personal property

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 1105(c)(3)
(a)
Imposition.
(1) The tax is imposed on receipts from every
				  sale of the services of installing, maintaining, servicing or repairing
				  tangible personal property, by any means including coin-operated machines,
				  whether or not any tangible personal property is transferred in conjunction
				  with the services.
(2) Installing
				  means setting up tangible personal property or putting it in place for use.
Example 1:
An individual pays for the installation of a washer and
					 dryer to existing wiring and plumbing in his home. The charge for installation
					 is taxable.
Example 2:
An individual contracts with a company for a central
					 station burglar alarm and guard service. The company charges him a fee at the
					 commencement of the contract for installing wiring and alarm devices. The
					 charge to the customer is taxable as an installation charge.
(3) Maintaining, servicing and repairing are
				  terms used to cover all activities that relate to keeping tangible personal
				  property in a condition of fitness, efficiency, readiness or safety or
				  restoring it to such condition.
Example 3:
The charge for the repair and tuning of a piano is
					 taxable.
Example 4:
The charge for the service of lubricating a motor vehicle
					 is taxable.
Example 5:
The charge for washing an automobile is taxable, whether
					 the washing is performed manually or by a coin-operated machine.
Example 6:
A company operates a diagnostic service in which it tests
					 an appliance for a set fee, but does not repair the appliance. The charge for
					 the diagnostic service is taxable.
Example 7:
A company operating a central station burglar alarm system
					 charges its customers a fee for repairs to the system necessitated by damage
					 beyond the control of the company. It does not charge its customers for repairs
					 required by malfunctioning of the system. The charge by the company is taxable
					 as a charge for repair.
(4)
				  The installation of tangible personal property by a person furnishing services
				  subject to tax under section 1105 (b)  of the Tax Law
				  (utility services) is a service subject to the tax imposed under section 1105 (c)(3)  of the Tax Law
				  when:
(i) the tangible personal property is
				  installed at the premises of the purchaser of the utility service;
(ii) the tangible personal property installed
				  is for use in connection with a utility service; and
(iii) the tangible personal property is
				  purchased and owned by the person purchasing the utility service. For
				  application of the tax on the installation of tangible personal property owned
				  by a person furnishing a utility service, see section
				  527.2(d) 
				  of this Part.
Example 8:
A person purchases a unique type telephone and requests the
					 telephone company to install it in his home for use in connection with the
					 telephone service subscribed to. The installation service is taxable under
					 section 1105 (c)(3)  of the Tax
					 Law.
(5)
(i) The installation of floor covering is
				  subject to tax unless it is the installation of the initial finished floor
				  covering in new construction, in a new addition to existing construction or in
				  a total reconstruction of existing construction.
(ii) The term floor covering includes carpet,
				  carpet tile, carpet padding, linoleum and vinyl roll floor covering, linoleum
				  tile, vinyl tile and other similar floor coverings.
Example 9:
A floor covering contractor removes wall-to-wall carpet and
					 installs new wall-to-wall carpet padding and carpeting as its replacement. The
					 total charge for the installation and sale of the padding and carpet is subject
					 to sales tax because this is merely the replacement of the existing floor
					 covering.
Cross-reference:
For a detailed discussion of the taxability of the
					 installation of floor covering, see section
					 541.14 
					 of this Title.