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 528 - Exemptions › Section 528.7 - Farming and commercial horse boarding operations

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 1101(b)(19), (20); 1105(c)(3)(vi), (5)(iii);
					 1115(a)(6), (15), (16), (c)(2)
(a)
Exemption.
(1) All tangible
				  personal property, whether or not incorporated in a building or structure, 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) is exempt from the New York State and local sales and compensating use
				  taxes. (See sections 1115[a][15] and [16] of the Tax Law exempting certain
				  tangible personal property sold to a contractor, subcontractor, or repairperson
				  when the property is to become an integral component part of a structure,
				  building, or real property used predominantly either in the production phase of
				  farming or in a commercial horse boarding operation, or in both.)
(2) The services of installing, maintaining,
				  servicing, and repairing the tangible personal property specified as exempt in
				  paragraph (1) of this subdivision are excluded from the State and local sales
				  and compensating use taxes. (See section
				  527.5 
				  of this Title for rules pertaining to installing, maintaining, servicing, and
				  repairing tangible personal property.)
Example:
A farmer (or an operator of a commercial horse boarding
					 operation) in this State has a tractor repaired. The tractor is used
					 predominantly in farm production (or in a commercial horse boarding operation).
					 The charge for materials is $100, and the charge for labor is $50. The farmer
					 gives the vendor a timely filed and properly completed exemption certificate
					 and is not required to pay the New York State and local sales and compensating
					 use taxes on the total charge for materials and labor. It does not matter
					 whether the vendor's invoice separately states the charges for the materials
					 and labor since neither is subject to tax.
(3) The services of maintaining, servicing,
				  and repairing real property, property, or land that is used or consumed
				  predominantly either in the production for sale of tangible personal property
				  by farming or in a commercial horse boarding operation (or in both) are
				  excluded from State and local sales and compensating use taxes. (See section
				  527.7 
				  of this title for rules pertaining to maintaining, servicing, and repairing
				  real property.
(4) Fuel, gas,
				  electricity, refrigeration, and steam, and gas, electric, refrigeration, and
				  steam service of whatever nature for use or consumption either in the
				  production for sale of tangible personal property by farming or in a commercial
				  horse boarding operation (or in both) are exempt from State and local sales and
				  compensating use taxes. (See, however, sections 1115[j] and 1120  of the Tax Law
				  with respect to motor fuel and diesel motor fuel.)
(5) Tangible personal property and services
				  eligible for exemption or exclusion may be purchased without payment of tax
				  upon the issuance to the vendor of a timely filed and properly completed
				  exemption certificate. (See subdivision [e] of this section.)