New York – Exemption for Military Service Flags and Prisoner of War Flags

 SALT Report 1933 – The New York Department of Taxation and Finance issued guidance regarding recently enacted legislation that offers a sales and use tax exemption for military service flags. Effective December 1, 2012 blue star and gold star banners, and prisoner of war flags are exempt from tax. Also included in the exemption are any related accessories used to display the flags if the accessories are sold along with the flag for a single price.

Chapter 477 of the Laws of 2012 establishes the following definitions:

Military service flags are those flags whose manufacture and sale are approved by the United States Secretary of Defense.  Military service flags include both blue and gold star flags.  A blue star banner may be displayed in a window of the residence of members of the immediate family of any individual serving in the Armed Forces during any period of war or hostilities in which the Armed Forces are engaged. A gold star banner is displayed to honor family members who died during service.

A prisoner of war flag is defined to mean the National League of Families POW/MIA flag.

Excluded from the exemption are patches, decals, and pins with a design of the flag that are worn on clothing.  However, certain military decorations, such as ribbons, medals, mini-medals, and lapel pins, are exempt from sales tax when sold to an active member or veteran of the United States military.

For Further Information:

New York Department of Taxation and Finance – TSB-M-12(13)S