[Amended 7-12-2005 by L.L. No. 1-2005]
On and after September 1, 2005, there is hereby
imposed and there shall be paid a tax of 3% upon:
A. The receipts from every retail sale of tangible personal
property, except as otherwise provided in this Article.
B. The receipts from every sale, other than sales for
resale, of gas, electricity, refrigeration and steam, and gas, electric,
refrigeration and steam service of whatever nature, and from every
sale, other than sales for resale, of telephony and telegraphy and
telephone and telegraph service of whatever nature, except interstate
and international telephony and telegraphy and telephone and telegraph
service.
C. Receipts for services.
(1) The receipts from every sale, except for resale, of
the following services:
(a)
The furnishing of information by printed mimeographed
matter or by duplicating written or printed matter in any other manner,
including the services of collecting, compiling or analyzing information
of any kind of nature and furnishing reports thereof to other persons,
but excluding the furnishing of information which is personal or individual
in nature and which is not or may not be substantially incorporated
in reports furnished to other persons, and excluding the services
of advertising or other agents, or other persons acting in a representative
capacity, and information services used by newspapers, radio broadcasters
and television broadcasters in the collection and dissemination of
news.
(b)
Producing, fabricating, processing, printing
or imprinting tangible personal property, performed for a person who
directly or indirectly furnishes the tangible personal property, not
purchased by him for resale, upon which such services are performed.
(c)
Installing tangible personal property, excluding
a mobile home, or maintaining, servicing or repairing tangible personal
property, including a mobile home, not held for sale in the regular
course of business, whether or not the services are performed directly
or by means of coin-operated equipment or by any other means, and
whether or not any tangible personal property is transferred in conjunction
therewith:
[1]
Except:
[a] Such services rendered by an individual
who is engaged directly by a private homeowner or lessee in or about
his residence and who is not in a regular trade or business offering
his services to the public.
[b] Any receipts from laundering, dry-cleaning,
tailoring, weaving, pressing, shoe repairing and shoe shining.
[c] For installing property which,
when installed, will constitute an addition or capital improvement
to real property, property or land, as the terms "real property,"
"property" and "land" are defined in the Real Property Tax Law.
[d] Such services rendered with respect
to commercial vessels and property used by or purchased for the use
of such vessels, as such vessels and property are specified in § 1115(a)(8)
of the Tax Law.
[e] Such services rendered with respect
to commercial aircraft, machinery or equipment and property used by
or purchased for the use of such aircraft, as such aircraft, machinery
or equipment and property are specified in § 1115(a)(21)
of the Tax Law.
[f] Such services rendered on or after September 1, 1982, with respect to tangible personal property for use or consumption directly and predominantly in the production for sale of tangible personal property by farming, as such tangible personal property is specified in §
261-16A(6) of this Article.
[2]
Provided, however, that nothing contained in this Subsection
C(1)(c) shall be construed to exclude from taxation under this subsection or under Subsection
B of this article any charge made by a person furnishing service subject to tax under Subsection
B of this article for installing property at the premises of a purchaser of such a taxable service for use in connection with such service.
(d)
Storing all tangible personal property not held
for sale in the regular course of business, and the rental of safe
deposit boxes or similar space.
(e)
Maintaining, servicing or repairing real property, property or land, as such terms are defined in the Real Property Tax Law, whether the services are performed in or outside of a building, as distinguished from adding to or improving such real property, property or land by a capital improvement as such term "capital improvement" is defined in §
261-11B of this Article, but excluding services rendered by an individual who is not in a regular trade or business offering his services to the public, and excluding interior cleaning and maintenance services performed on a regular contractual basis for a term of not less than 30 days, other than window cleaning, rodent and pest control and trash removal from buildings.
(2) Wages, salaries and other compensation paid by an employer to an employee for performing as an employee the services described in Subsection
C(1)(a) through
(e) of this section are not receipts subject to the taxes imposed under such subsection.
D. Food and drink.
(1) The receipts from every sale of beer, wine or other alcoholic beverages or any other drink of any nature, or from every sale of food and drink of any nature or of food alone, when sold in or by restaurants, taverns or other establishments in this taxing jurisdiction or by caterers, including in the amount of such receipts any cover, minimum, entertainment or other charge made to patrons or customers, except those receipts taxed pursuant to Subsection
F of this section:
(a)
In all instances where the sale is for consumption
on the premises where sold.
(b)
In those instances where the vendor or any person
whose services are arranged for by the vendor, after the delivery
of the food or drink by or on behalf of the vendor for consumption
off the premises of the vendor, serves or assists in serving, cooks,
heats or provides other services with respect to the food or drink.
(c)
In those instances where the sale is for consumption
off the premises of the vendor, except where food (other than sandwiches)
or drink, or both, are sold in an unheated state and are of a type
commonly sold for consumption off the premises and in the same form
and condition, quantities and packaging, in establishments which are
food stores other than those principally engaged in selling foods
prepared and ready to be eaten.
(2) The tax imposed by this subsection shall not apply
to:
(a)
Food or drink which is sold to an airline for
consumption while in flight.
(b)
Food or drink sold to a student of a nursery
school, kindergarten, elementary or secondary school at a restaurant
or cafeteria located on the premises of such a school, or food or
drink other than beer, wine or other alcoholic beverages, sold at
a restaurant, tavern or other establishment located on the premises
of a college, university or a school (other than a nursery school,
kindergarten, elementary or secondary school) to a student enrolled
therein who purchases such food or drink under a contractual arrangement
whereby the student does not pay cash at the time he is served, provided
that the school, college or university described in this subsection
is operated by an exempt organization described in § 1116(a)
of the Tax Law, or is created, incorporated, registered or licensed
by the State Legislature or pursuant to the Education Law or the regulations
of the Commissioner of Education, or is incorporated by the Regents
of the University of the State of New York or with their consent or
the consent of the Commissioner of Education as provided in § 216
of the Education Law.
(c)
Food or drink sold through coin-operated vending
machines at $0.10 or less, provided that the vendor is primarily engaged
in making such sales and maintains records satisfactory to the State
Tax Commission.
E. The rent for every occupancy of a room or rooms in
a hotel in this taxing jurisdiction, except that the tax shall not
be imposed upon a permanent resident or where the rent is not more
than at the rate of $2 per day.
F. Amusements.
(1) Any admission charge where such admission charge is
in excess of $0.10 to or for the use of any place of amusement in
this taxing jurisdiction, except charges for admission to race tracks,
boxing, sparring or wrestling matches or exhibitions, which charges
are taxed under any other law of this state, or dramatic or musical
arts performances, or motion picture theaters, and except charges
to a patron for admission to or use of facilities for sporting activities
in which such patron is to be a participant, such as bowling alleys
and swimming pools. For any person having the permanent use or possession
of a box or seat or a lease or a license, other than a season ticket,
for the use of a box or seat at a place of amusement, the tax shall
be upon the amount for which a similar box or seat is sold for each
performance or exhibition at which the box or seat is used or reserved
by the holder, licensee or lessee, and shall be paid by the holder,
licensee or lessee.
(2) The dues paid to any social or athletic club in this
taxing jurisdiction if the dues of an active annual member, exclusive
of the initiation fee, are in excess of $10 per year, and on the initiation
fee alone, regardless of the amount of dues, if such initiation fee
is in excess of $10, except that the tax shall not apply to a fraternal
society, order or association operating under the lodge system or
any fraternal association of students of a college or university.
Where the tax on dues applies to any such social or athletic club,
the tax shall be paid by all members thereof, other than honorary
members, regardless of the amount of their dues, and shall be paid
on all dues or initiation fees for a period commencing on or after
March 1, 1988. In the case of a life membership, the tax shall be
upon the amount paid as life membership dues; however, a life member,
other than an honorary member, paying an annual sales tax, based on
the dues of an active annual member, shall continue such payments
until the total amount of such tax paid is equal to the amount of
tax that would have otherwise been due had the tax been imposed at
the time such paid life membership has been purchased and at the then
applicable rate.
(3) The amount paid as charges of a roof garden, cabaret
or other similar place in the state.
[Amended 7-12-2005 by L.L. No. 1-2005]
A. Except to the extent that property or services have
already been or will be subject to the sales tax under this article,
there is hereby imposed on every person a use tax for the use within
this taxing jurisdiction on and after September 1, 2005, except as
otherwise exempted under this article:
(1) Of any tangible personal property purchased at retail.
(2) Of any tangible personal property (other than computer
software used by the author or other creator) manufactured, processed
or assembled by the user:
(a)
If items of the same kind of tangible personal
property are offered for sale by him in the regular course of business;
or
(b)
If items are used as such or incorporated into
a structure, building or real property, by a contractor, subcontractor
or repairman in erecting structures or buildings, or building on,
or otherwise adding to, altering, improving, maintaining, servicing
or repairing real property, property or land, as the terms "real property,"
"property" and "land" are defined in the Real Property Tax Law, if
items of the same kind are not offered for sale as such by such contractor,
subcontractor or repairman or other user in the regular course of
business.
(3) Of any of the services described in paragraphs (1),
(7) and (8) of subdivision (c) of section two.
(4) Of any tangible personal property, however acquired,
where not acquired for purposes of resale, upon which any of the services
described under paragraphs (2), (3) and (7) of subdivision (c) of
section two have been performed.
(5) Of any telephone answering service described in subdivision
(b) of section two.
(6) Of any computer software written or otherwise created
by the user if the user offers software of a similar kind for sale
as such or as a component part of other property in the regular course
of business.
(7) Of any prepaid telephone calling service.
(8) Of any gas or electricity described in subdivision
(b) of section two of this enactment.
B. For purposes of Subsection
A(1) of this section, the tax shall be at the rate of 3% of the consideration given or contracted to be given for such property, or for the use of such property, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section one, but excluding any credit for tangible personal property
accepted in part payment and intended for resale.
C. For purposes of Subsection
A(2)(a) of this section, the tax shall be at the rate of 3% of the price at which items of the same kind of tangible personal property are offered for sale by the user, and the mere storage, keeping, retention or withdrawal from storage of tangible personal property by the person who manufactured, processed or assembled such property shall not be deemed a taxable use by him or her; provided, however, that if the user uses such an item itself on its own premises (not including making a gift of such tangible personal property), solely in the conduct of the user's own business operations, and the item retains its characteristic as tangible personal property when so used, the tax shall be at the rate, and on the consideration, described in Subsection
D of this section.
D. For purposes of Subsection
A(2)(b) of this section, the tax shall be at the rate of 3% of the consideration given or contracted to be given for the tangible personal property manufactured, processed or assembled into the tangible personal property the use of which is subject to tax, including any charges for shipping or delivery as described in paragraph three of subdivision (b) of section one.
E. Notwithstanding the foregoing provisions of this section, for purposes of Subsection
A(2) of this section, there shall be no tax on any portion of such price which represents the value added by the user to tangible personal property which he fabricates and installs to the specifications of an addition or capital improvement to real property, property or land, as the terms "real property," "property" and "land" are defined in the Real Property Tax Law, over and above the prevailing normal purchase price prior to such fabrication of such tangible personal property which a manufacturer, producer or assembler would charge an unrelated contractor who similarly fabricated and installed such tangible personal property to the specifications of an addition or capital improvement to such real property, property or land.
F. For purposes of Subsection
A(3),
(4) and
(5) of this section, the tax shall be at the rate of 3% of the consideration given or contacted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the performance of the service and also including any charges for shipping and delivery of the property so transferred and of the tangible personal property upon which the service was performed as such charges are described in paragraph three of subdivision (b) of section one.
G. For purposes of Subsection
A(6) of this section, the tax shall be at the rate of 3% of the consideration given or contracted to be given for the tangible personal property which constitutes the blank medium, such as disks or tapes, used in conjunction with the software, or for the use of such property, and the mere storage, keeping, retention or withdrawal from storage of computer software described in such Subsection
A(6) by its author or other creator shall not be deemed a taxable use by such person.
H. For purposes of Subsection
A(7) of this section, the tax shall, except as otherwise provided by law, be at the rate of 3% of the consideration given or contracted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the service and also including any charges for shipping and delivery of the property so transferred as such charges are described in paragraph three of subdivision (b) of section eleven hundred one, provided that, if the user offers like services for sale
in the regular course of business, the tax shall be at the rate of
2% of the price at which the user offers such like services for sale.
I. For purposes of Subsection
A(8) of this section, the tax shall, except as otherwise provided by law, be at the rate of 3% of the consideration given or contracted to be given for, or for the use of, the gas or electricity, including the consideration for any tangible personal property transferred in conjunction with the performance thereof, and including any charges described in paragraph three of subdivision (b) of section eleven hundred one of this article.
Any tax imposed under the authority of this Article shall apply only within the territorial limits of this taxing jurisdiction, except that any establishment located partially within this taxing jurisdiction and partially within a town or towns and receiving jurisdiction shall be deemed to be wholly within this taxing jurisdiction for the purposes of the taxes imposed by §
261-12B and
E.
The following uses of property shall not be
subject to the compensating use tax imposed under this Article:
A. Property used by purchaser.
[Amended 7-12-2005 by L.L. No. 1-2005]
(1) In respect to the use of property used by the purchaser
in this City prior to March 1, 1988.
(2) In respect to the additional tax of 1 1/2% imposed
effective September 1, 2005, in respect to the use of property used
by the purchaser in this City prior to September 1, 2005.
B. In respect to the use of property purchased by the
user while a nonresident of this taxing jurisdiction, except in the
case of tangible personal property which the user, in the performance
of a contract, incorporates into the real property located in the
taxing jurisdiction. A person, while engaged in any manner in carrying
on in this taxing jurisdiction any employment, trade, business or
profession, shall not be deemed a nonresident with respect to the
use in this taxing jurisdiction of property in such employment, trade,
business or profession.
C. In respect to the use of property or services upon the sale of which the purchaser would be expressly exempt from the taxes imposed under §
261-12A,
B or
C.
D. In respect to the use of property which is converted
into or becomes a component part of a product produced for sale by
the purchaser.
E. In respect to the use of paper in the publication
of newspapers and periodicals.
F. Municipal corporations; other jurisdictions.
(1) In respect to the use of property or services to the extent that a retail sales tax or a compensating use tax was legally due and paid thereon, without any right to a refund or credit thereof, to any municipal corporation in this state or any other state or jurisdiction within any other state, but only when it is shown that such other state or jurisdiction allows a corresponding exemption with respect to the sale or use of tangible personal property or of any of the services upon which such a sale or compensating use tax was paid to this state and any of its municipal corporations, except as provided in Subsection
F(2) of this section.
(2) To the extent that a compensating use tax imposed by this Article and the compensating use tax imposed by Article 28 of the Tax Law are at a higher aggregate rate than the rate of tax imposed in any other state or jurisdiction within any other state, the exemption provided in Subsection
F(1) of this section shall be inapplicable, and the taxes imposed by this Article and by Article 28 shall apply to the extent of the difference between such aggregate rate and the rate paid in such other state or jurisdiction. Where a retail sales tax or a compensating use tax was legally due and paid to any municipal corporation in this state, without any right to a refund or credit thereof, with respect to the sale or use of tangible personal property or any of the services subject to sales or compensating use tax, if the use of such property or services is then subject to the compensating use tax imposed by this Article and such tax is at a higher rate than the rate of tax imposed by the first municipal corporation, the tax imposed by this Article shall also apply but only to the extent of the difference in such rates.
(3) For the purposes of this subsection, a payment to
the State Tax Commission of a tax imposed by a municipal corporation
shall be deemed a payment to such municipal corporation.
G. In respect to the use of spare parts (including engines),
consumable technical supplies, maintenance and ground equipment used
exclusively in the operation or handling or maintenance of aircraft
and aircraft stores brought into this state from a foreign country
by a foreign airline which holds a foreign air carrier permit issued
by the Civil Aeronautics Board pursuant to Section 402 of the Federal
Aviation Act of 1958, as amended, to engage in foreign air transportation,
provided that:
(1) Such property is to be used on aircraft (or directly
in the operation, handling or maintenance of aircraft) of the airline
providing foreign air transportation services (or such aircraft of
another foreign airline eligible under this subdivision).
(2) Such property would not be subject to taxes imposed
in the foreign country in which the particular foreign airline is
based if brought into such country by a United States airline operating
in that country.
H. In respect to the use of a thoroughbred, standardbred or quarter horse purchased outside this taxing jurisdiction and brought into this taxing jurisdiction for the purpose of entering a racing event or events on which parimutuel wagering is authorized by law, and to prepare therefor; provided, however, that the exemption contained in this subsection shall not apply to any such horse which enters racing events in this taxing jurisdiction on more than five days in any one calendar year. Nothing contained herein shall alter the exemption provided to nonresidents as specified in Subsection
B of this section.
The taxes imposed by this Article under the
authority of Article 29 of the Tax Law shall be administered and collected
by the State Tax Commission in the same manner as the taxes imposed
under Article 28 of the Tax Law are administered and collected by
such Commission. All of the provisions of said Article 28 relating
to or applicable to the administration and collection of the taxes
imposed by that Article shall apply to the taxes imposed by this Article,
including §§ 1101, 1106(e), 1111, 1118(7)(b), 1119
and 1131 through 1147, together with any amendments thereto, with
the same force and effect as if those provisions had been incorporated
in full into this Article, except as otherwise provided in § 1250
of the Tax Law.
Net collections distributed to this taxing jurisdiction
by the State Tax Commission pursuant to § 1261 of the Tax
Law of the State of New York shall be paid into the treasury of this
taxing jurisdiction, shall be credited to and deposited in the general
fund thereof and shall be available for any city purpose. Expenditures
from the proceeds of the taxes imposed by this Article shall not be
considered as part of the cost of government within the meaning of
any limitation on expenditures contained in any general, special or
local law applicable to this taxing jurisdiction. As used in this
section, "net collections" shall mean the moneys collected from the
taxes imposed pursuant to this Article, after deducting therefrom
expenses of administration and collection and amounts refunded or
to be refunded.
This Article shall be construed and enforced
in conformity with Articles 28 and 29 of the Tax Law of the State
of New York pursuant to which the same is enacted.