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Introduction

Video: NYS Sales Tax
Goods and Services

Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt. Sales of services are generally exempt from New York sales tax unless they are specifically taxable. This bulletin describes:

• taxable property and services,
• exempt property and services, and

• exemption documents.

Tangible personal property and services

Whether sales of a particular good or service are taxable may depend on many factors. You should consult our publications and tax bulletins for more detailed explanations of what property and services are subject to sales tax. See the listing below for examples of taxable tangible personal property and services.

The term tangible personal property means any kind of physical personal property that has a material existence and is perceptible to the human senses (in other words, something you can see and touch).

Examples of taxable tangible personal property, services, and transactions that are subject to sales tax are:

• tangible personal property:
  • furniture, appliances, and light fixtures;
  • certain clothing and footwear;
  • machinery and equipment, parts, tools, and supplies;
  • computers;
  • prewritten (canned/off-the-shelf/standard) computer software (whether transferred by CD-ROM, Internet download, remote access, etc.);
  • motor vehicles;
  • boats and yachts;
  • fuels (for example, gasoline, diesel fuel, and kero-jet fuel);
  • candy and confections;
  • bottled water;
  • soda and beer;
  • cigarettes and tobacco products;
  • cosmetics and toiletries;
  • jewelry;
  • artistic items such as sketches, paintings, and photographs;
  • animals (for example, dogs, cats, or pet birds);
  • food and supplies for animals;
  • trees, shrubs, and seeds;
  • coins and other monetary items, when purchased for purposes other than for use as a medium of exchange;
  • building materials; and
  • prepaid telephone calling cards.
• restaurant food and drink;
• utility and (intrastate) telecommunication services;
• telephone answering services;
• prepaid telephone calling services;
• mobile telecommunication services;
• certain information services;
• processing, fabricating, printing, or imprinting of tangible personal property for a customer who furnishes the tangible personal property and doesn't plan to resell it;
• maintaining, installing, servicing, and repairing of tangible personal property;
• storing tangible personal property (does not include certain rentals of mini-storage units that constitute the rental of real property - see TSB-M-86(3)S, Taxable Status of the Rental of Self-Service Mini-Storage Units);
• maintaining, servicing, and repairing real property;
• certain parking and garaging or storing of motor vehicles;
• interior decorating and design services;
• protective and detective services;
• passenger transportation services with a driver using limousines, black cars, and certain other motor vehicles (not including taxi and bus services - see TSB-M-09(7)S, Additional Guidance Relating to the Sales Tax on Certain Transportation Services);
• furnishing or providing entertainment or information by telephony or telegraphy or by telephone or telegraph service, provided, for example, over phone numbers with an 800 or 900 prefix;
• hotel occupancy;
• admission charges to a place of amusement;
• social and athletic club dues; and
• certain portions of cabaret charges.

Services subject only to New York City sales tax are:

• beautician services, barbering, and hair restoring;
• tanning;
• manicure and pedicure;
• electrolysis;
• massage services and services provided by weight control and health salons, gymnasiums, Turkish and sauna baths, and similar establishments;
• written or oral credit rating services; and 
• oral credit reporting services not delivered by telephone.

Tax exempt property and services

The chart below lists property and services that are generally exempt from sales tax. It also lists:

• tax law sections that provide the exemption;
• department publications, bulletins, and technical memoranda (TSB-Ms) that are relevant to the exemption; and
• exemption documents, if any, that the customer must give to the seller for the sale to be treated as exempt from tax. 

You should not collect sales tax on exempt sales that do not require an exemption document. However, for sales that require an exemption document, you must collect sales tax unless you receive a properly completed exemption document from the purchaser. You must receive the exemption document within 90 days of the date you delivered the property or rendered the service.

Sales to New York State, its political subdivisions, and to the federal government are also exempt from sales tax. In these cases, you should receive a government purchase order or other suitable documentation, such as Form ST-129, Exemption Certificate Tax on occupancy of hotel rooms. The general exemption for sales to New York State, its political subdivisions, and to the federal government does not apply to sales of motor fuel or diesel motor fuel that is not used or consumed by the governmental entity
(see section 1116(b)(5) of the Tax Law).

See Tax Bulletin, Exemption Certificates for Sales Tax (TB-ST-240).

¹Special rules apply to contractors who provide maintenance and other services to real property. For more information, see Publication 862, Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property.     [back]

²This exemption does not apply to locally imposed sales and use taxes unless the county or city imposing those taxes elected the exemption. Also, certain school districts impose a sales tax on specified residential energy sources and services. See Pub 718-R, Local Sales and Use Tax Rates on Residential Energy Sources and Services.    [back]

³Medical equipment and supplies purchased by a person for use in performing medical services for compensation are subject to sales and use taxes.    [back]

⁴This exemption does not apply to locally imposed sales and use taxes, unless the county or city imposing those taxes elected the exemption. See Pub 718-C, Local Sales and Use Tax Rates on Clothing and Footwear.    [back]

⁵This exemption does not apply to locally imposed sales and use taxes, unless the county or city imposing those taxes elected the exemption. See Pub 718-S, Local Sales and Use Tax Rates on Sales and Installations of Residential Solar Energy Systems Equipment.    [back]