New York – Taxability of Co-Op Parking Charges

SALT Report 1923 – The New York Department of Taxation issued an advisory opinion regarding the taxability of parking charges imposed on residents of a cooperative housing development.  The building’s association has a parking facility that is used by members and non-member residents who reside in the members’ apartments. The parking facility is also available to the general public; however a certain number of spaces in the facility are designated for the exclusive use of the member and non-member residents.

New York State Tax Laws impose the following taxes on parking facility charges:

New York Tax Law section 1105(c)(6) imposes a 4% state sales tax on receipts from “providing parking, garaging or storing for motor vehicles by persons operating a garage, parking lot, or other place of business engaged in providing parking, garaging or storing for motor vehicles,”

Section 1210(d)(4) of the tax law authorizes and Section 11-2001(b)(1)(ii) of the New York City Administrative Code imposes 6% New York City local sales tax on receipts within city limits,

New York Tax Law section 1109(a) imposes an additional 3/8% tax on receipts within the metropolitan commuter transportation district, and

New York Tax Law section 1212-A(a) authorizes an additional 8% parking tax for New York County

However, each of the above tax law sections provide that “receipts for such services paid to a homeowner’s association by its members or receipts paid by members of a homeowner’s association to a person leasing the parking facility from the homeowner’s association shall not be subject to tax.”

Therefore, parking charges paid by members of a cooperative housing association, to park their vehicle qualify for the homeowners’ association exclusion from New York State and city sales taxes, whether the charges are paid to the association or to the parking facility operator.

However, charges paid by a non-member resident are subject to state and city taxes but may qualify for an exemption from the additional parking tax, if they are a Manhattan resident.

For Further Information:

New York Commissioner of Taxation and Finance – TSB-A-12(28)S