New York – Taxability of Charges for Transportation Services Revised

2/27/2013

SALT Report 2195 – The New York Department of Taxation and Finance issued a technical memorandum that explains the Department’s recent policy revisions regarding the exclusion from sales tax for charges for transportation services provided by affiliated livery vehicles.

Old Policy

Chapter 57 of the Laws of 2010 excluded charges for transportation services provided by affiliated livery vehicles in New York City from sales tax.  The Department interpreted the exclusion as only applying to charges for transportation services provided by affiliated livery vehicles for trips that took place within New York City limits.

Revised Policy

The Department has reconsidered this interpretation so that the exclusion will also apply to charges for transportation services provided by affiliated livery vehicles that either begin or end in New York City.  For example, charges for transportation services provided by affiliated livery vehicles for trips that begin in New York City and end in Nassau County will now be excluded from sales tax.  Similarly, charges for transportation services that begin in Nassau County and end in New York City are also excluded from sales tax. The exclusion from sales tax for trips that begin and end in New York City remains in effect.

The revised policy provisions are effective March 1, 2013. Taxpayers cannot apply for a refund of any sales tax that was collected and remitted based on the policy that was in effect prior to March 1, 2013.

For Further Information

http://www.tax.ny.gov/pdf/memos/sales/m13_2s.pdf