New York – Electricity Sold at Vehicle Charging Stations Taxable

SALT Report 2792 – The New York Division of Taxation and Finance issued an advisory opinion regarding whether a Taxpayer is obligated to collect sales tax on its sales of electricity at its electric vehicle charging stations.  The Taxpayer in this case, owns and operates several electric vehicle charging stations in New York.  The Taxpayer requested a ruling regarding the taxability of its per unit charges for electricity when transferred to its customers’ electric vehicles.

In its response, the Department referred to Section 1105(b)(1)(A) of the Tax Law which imposes sales tax on the receipts from every sale of electricity and electric service of whatever nature.  Although this tax is generally known as the “consumer’s utility tax,” the Department stated that the intention of the statute is to tax certain sales and services that are offered by companies that may or may not be subject to regulation as a utility company.

Therefore, based on that statue and the term “of whatever nature” the Department concluded that the Taxpayer’s per unit charges for electricity are subject to sales tax under Tax Law § 1105(b).

For Further Information

New York Commissioner of Taxation and Finance – TSB-A-13(18)S