Schedule N: Selected Sales and Services in New York City
Complete Quarterly Schedule N, if you provide any of the services in New York City:
- Parking, garaging, or storing of motor vehicles (also file Schedule N-ATT)
- Occupancy of hotels/motels and similar establishments
- Miscellaneous services (see below)
Business activity: If you are normally required to file this schedule but you have nothing to report on it for this filing period, select "No."
Parking, garaging, or storing motor vehicles:
Parking, garaging and storage services are taxable within the City of New York at the rate of 10⅜%. Manhattan has an additional 8% parking tax (unless sold to certified exempt residents). Eligibility and the application to qualify for the exemption of the additional 8% parking tax can be found at www.nyc.gov. Parking services provided by municipal facilities are subject to tax at 8%.
- Parking: Parking is providing space for the temporary storage of a motor vehicle. The customer's space may be inside or outside a building or structure. The facility where the space is provided may or may not be staffed by an attendant. The customer's space may or may not be specifically designated, and the customer generally has the right to remove the vehicle at any time. The customer pays a fee for the parking service, which may be computed at an hourly, daily, weekly, monthly, or other rate.
- Garaging: similar to parking except that the place or space to store a customer's vehicle is generally within a structure. The customer may be assigned a particular area, such as a space, stall, or garage, and the customer may have some control over the space (for example, a locked door or secure entrance).
- Storing: like parking and garaging, except that it is usually provided for vehicles that will not be used for extended periods of time. Also, the customer may not have free and unlimited access to the vehicle.
If you sell these services in New York City, you must also file Schedule N-ATT.
Hotel occupancy is the use, or right to use, a room in a hotel. The room rate or rental charge is the amount that guests must pay to stay in the hotel room (or to have the right to use the hotel room). This amount is taxable at the full state and local sales tax rate. For more information regarding hotel occupancy, see Tax Bulletin Hotel and Motel Occupancy, TB-ST-331.
A room remarketer (such as an Internet travel site) is considered to be a hotel operator and must collect sales tax on the charge to its customers for hotel occupancy. Room remarketers may claim a credit for the tax they pay to the hotel operator when they sell the occupancy. For more information on room remarketers, see TSB-M-10(10)S, Amendments Affecting the Application of Sales Tax to Rent Received for Hotel Occupancy by Room Remarketers.
For sales tax purposes (other than New York City's 4% tax), an occupant in a hotel for at least 90 consecutive days is considered a permanent resident. For purposes of New York City's 4½% tax, an occupant of a room or rooms in a hotel for at least 180 consecutive days is considered a permanent resident .
When completing Schedule N, report sales of occupancy:
- For the first 90 days of room occupancy: at the state and local rate of 8⅞%.
- For the 91st through 180th days of room occupancy: at the 4½% local tax, only.
For additional information on permanent residents, see TSB-M-03(1)S, Sales Tax on Rent for Hotel Occupancy and the Exception for Permanent Residents.
Hotel unit fee in New York City
Hotels in New York City must charge an additional hotel unit fee of $1.50 per unit per day, in addition to the state and local sales taxes on hotel occupancy. For more information on the hotel unit fee, see TSB-M-05(2)S, Fee on Hotel Occupancy in New York City.
Miscellaneous personal services: are generally services that affect the appearance or comfort of people. This includes beauty, barbering, hair restoring, manicuring, pedicuring, electrolysis, massage services, and similar services; and charges from sales of services for the use of weight control salons, health salons, gymnasiums, Turkish baths, sauna baths, and similar establishments. For more information, see Tax Bulletin Miscellaneous Personal Services and Related Sales in New York City, TB-ST-575.
Credits against taxable sales and services: Credits that can be identified by locality must be claimed on the appropriate jurisdiction line. For example, if you charge tax to a customer and later determine that the sale is exempt and you refund the tax to the customer, you may claim a credit for the tax you collected. For more information on credits, see Claiming credits on your sales tax return