Each year the joy of Summer seems to more quickly pass into the demands of the Fall. Perhaps your summer, like mine, is a coveted time to catch up on non-technical reading. However, last week the New York State Department of Taxation and Finance issued approximately 15 Sales Tax Technical Bulletins and several Technical Advisory Opinions that may warrant interrupting your summer easy reading and that should be on your Summer Multistate Tax Reading List as well. To assist in your reading pleasure and efficiency, this post provides links to New York’s early August blast of sales tax technical releases. The technical guidance addressed in these tech bulletins and advisory opinions may affect multistate taxpayers in numerous industries and warrants your attention.
Tax Bulletins/Sales Tax
The Department issued the following Sales Tax Bulletins that provide insights, guidance and links to additional Department materials for the areas discussed:
TB-ST-107, Cartons, Containers, and Packaging Materials
TB-ST-113, Certificate of Capital Improvement – Exemption Form ST 124
TB-ST-126, College Textbooks – Exemption Form ST-121.4
TB-ST-128, Computer Software
TB-ST-190, Drop Shipments
TB-ST-193, Drugstores and Pharmacies
TB-ST-243, Exemptions for Computer System Hardware (Form ST 121.3)
TB-ST-253, Farmers and Commercial Horse Boarding Operators – Exemption Form ST-125
TB-ST- 315, Government Employee Occupancy of Hotel Rooms – Exemption Form ST-129
TB-ST-535, Live Dramatic and Musical Arts Performance – Exemption Form ST-121.9
TB-ST-665, Operators of Internet Data Centers (Web Hosting) – Exemption Form ST-121.5
TB-ST-692, Promotional Materials – Exemption Form ST-121.2
TB-ST-757, Racehorses – Exemption Form ST-126
TB-ST-890, Tractors, Trailers, Semitrailers, or Omnibuses – Exemption Form ST-121.1
Sales Tax Advisory Opinions
In addition, the Department issued several Sales Tax Advisory Opinions, TSB-A’s, in its early August release. Of particular interest is TSB-A-14(23)S, in which the petitioner requested guidance as to whether the transfer of tangible personal property to a New York limited liability company (LLC) in consideration for a pro rata share of interest in the LLC is subject to New York sales and use tax. The Department in this TSB concluded that the transfer of tangible personal property to the LLC is not subject to sales and use tax. As each TSB-A is highly fact sensitive, you may wish to review the petitioner’s specific facts in your evaluation of this TSB-A’s potential guidance value.
In addition, the Department issued the following Sales Tax TSB-A’s. For convenience, we have included the Department’s description of each TSB-A as set forth in its August 11th announcement:
TSB-A-14(22)S, Whether sales tax is imposed on Petitioner’s receipts for the service of acting as facilitator in the acquisition from the Federal Bureau of Investigation of criminal history information about applicants for employment with a client of Petitioner.
TSB-A-14(24)S, Whether fines charged for violating parking rules and regulations are subject to sales tax in New York State.
TSB-A-14(25)S, Whether wasabi and soy seasoned almonds are subject to New York State and local sales and use taxes.
August In New York – Why We Love NY
Hopefully New York’s early August wave of sales tax technical guidance and advisory opinions will not significantly interrupt your summer fun and leisure. Perhaps like many aspects of New York, they will just help make our summer a bit more interesting. However, just as waves may be more intricate and powerful than first perceived, the Department’s wave of sales tax technical advice warrants careful review even during this season of leisure.
As the ads for New York tourism call out to us and the NYS Fair this month in Syracuse serves as just one example of why New York remains so attractive to many I am reminded of why I LOVE NY– it is never boring.