New York – Department Of Taxation And Finance Announces Sales And Use Tax Legislative Changes

SALT Report 3503 – The New York Department of Taxation and Finance has released a memorandum containing a summary of sales and use tax changes enacted as part of the 2014-2015 New York state budget.  The new legislative changes include:

  • Exemption increase for vending maching sales of certain food and drink – “Part II of Chapter 59 of the Laws of 2014 amended the Tax Law to increase the state and local sales and use tax (sales tax) exemption amount from $0.75 or less per item to $1.50 or less per item for certain food and drink items sold through vending machines. The increased threshold of $1.50 or less took effect June 1, 2014”
  • Changes to the prepaid sales tax on motor fuel and diesel motor fuel – “Part LL of Chapter 59 of the Laws of 2014 amended the Tax Law to establish new regions for computing the prepaid sales tax imposed on motor fuel and diesel motor fuel and to provide for changes in the prepaid sales tax rates”
  • Extension of exemptions for certain tangible personal property and services related to leased commercial office space in lower Manhattan – “Part GG of Chapter 59 of the Laws of 2014 extends the tax-related incentives for businesses to locate or relocate their offices and employees in lower Manhattan. The original incentives were provided by Chapter 2 of the Laws of 2005. Subpart A of Part GG includes amendments that extend exemptions from the state and local sales tax for certain purchases of tangible personal property and services related to leased commercial office space in two eligible areas in lower Manhattan defined in Tax Law section 1115(ee)(7)(D). The amendments in Subpart A took effect March 31, 2014, and are deemed to have been in effect on and after September 1, 2013. The new law provides that tenants, landlords, and contractors who paid sales tax on qualifying purchases on or after September 1, 2013, are eligible to apply for a credit or refund of the tax paid at the time of the sale”
  • Extension of tax exemptions for alternative fuels and natural gas – “Part V of Chapter 59 of the Laws of 2014 extends, until August 31, 2016, the existing tax exemptions for alternative fuels and natural gas that will be converted into compressed natural gas (CNG) for use or consumption in motor vehicles. The existing exemptions were set to expire on August 31, 2014.The extension continues the full exemptions for E85, CNG, and hydrogen, and the partial exemption for B20, from the excise tax (Article 12-A), the petroleum business tax (Article13-A), and the state and local sales and use taxes (Articles 28 and 29).The extension also continues the exemptions from the prepaid sales tax for CNG and hydrogen fuels, as well as for E85 fuel that is delivered to and placed in the storage tank of a filling station to be dispensed directly into a motor vehicle for use in the operation of the motor vehicle. However, the exemption from the prepaid sales tax does not apply to sales of B20 fuel.Finally, the extension continues the exemption from the retail sales and use taxes for natural gas that is purchased in an uncompressed state and that will be converted into CNG and used or sold for use or consumption directly and exclusively in the engine of a motor vehicle”

For Further Information:

NY Summary of Sales and Use Tax Budget Legislation