City of Fulton, NY Sales and Use Tax

A sale of tangible personal property to any person for any purpose other than for resale as such or as a physical component part of tangible personal property or for use by that person in performing the services subject to tax under § 556-18C(1)(a), (b), (c) and (e) where the property so sold becomes a physical component part of the property upon which the services are performed or where the property so sold is later actually transferred to the purchaser of the service in conjunction with the performance of the service subject to tax. Notwithstanding the preceding provisions of this subsection, a sale of any tangible personal property to a contractor, subcontractor or repairman for use or consumption 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" or "land" are defined in the Real Property Tax Law, is deemed to be a retail sale, regardless of whether the tangible personal property is to be resold as such before it is so used or consumed.

[Amended 7-6-1971]

The term "retail sale" does not include:

The transfer of tangible personal property to a corporation, solely in consideration for the issuance of its stock, pursuant to a merger or consolidation effected under the law of New York or any other jurisdiction.

The distribution of property by a corporation to its stockholders as a liquidating dividend.

The distribution of property by a partnership to its partners in whole or partial liquidation.

SALE, SELLING or PURCHASE

The transfer of property to a corporation upon its organization in consideration for the issuance of its stock.

(e)

The contribution of property to a partnership in consideration for a partnership interest therein.

Any transfer of title or possession, or both, exchange or barter, rental, lease or license to use or consume, conditional or otherwise, in any manner or by any means whatsoever for a consideration, or any agreement therefor, including the rendering of any service taxable under this article for a consideration or any agreement therefor.

TANGIBLE PERSONAL PROPERTY

Corporeal personal property of any nature. However, except for purposes of the tax imposed by § 556-18B, such term shall not include gas, electricity, refrigeration and steam.

USE

The exercise of any right or power over tangible personal property by the purchaser thereof and includes, but is not limited to, the receiving, storage or any keeping or retention for any length of time, withdrawal from storage, any installation, any affixation to real or personal property or any consumption of such property.

VENDOR

Includes:

A person making sales of tangible personal property or services, the receipts from which are taxed by this article.

A person maintaining a place of business in the State of New York and making sales, whether at such place of business or elsewhere, to persons within the City of Fulton of tangible personal property or services, the use of which is taxed by this article.

A person who solicits business either by employees, independent contractors, agents or other representatives or by distribution of catalogs or other advertising matter and by reason thereof makes sales to persons within the City of Fulton of tangible personal property or services, the use of which is taxed by this article.

Any other person making sales to persons within the City of Fulton of tangible personal property or services, the use of which is taxed by this article, who may be authorized by the New York State Tax Commission to collect such tax.

(e)

The State of New York, any of its agencies, instrumentalities, public corporations, including a public corporation created pursuant to agreement or compact with another state or Canada, or political subdivisions when such entity sells services or property of a kind ordinarily sold by private persons.

CHARGE OF A ROOF GARDEN, CABARET OR OTHER SIMILAR PLACE

Any salesman, representative, peddler or canvasser who is treated by the New York State Tax Commission as a vendor, pursuant to the provisions of § 1101, Subdivision (b)(8)(ii), of the Tax Law of the State of New York.

For the purposes of the tax imposed under § 556-18E, the following terms shall have the meanings indicated:

HOTEL

A building or portion of it which is regularly used and kept open as such for the lodging of guests. The term "hotel" includes an apartment hotel, a motel, boardinghouse or club, whether or not meals are served.

OCCUPANCY

The use or possession or the right to the use or possession of any room in a hotel.

OCCUPANT

A person who, for a consideration, uses, possesses or has the right to use or possess any room in a hotel under any lease, concession, permit, right of access, license to use or other agreement or otherwise.

OPERATOR

Any person operating a hotel.

PERMANENT RESIDENT

Any occupant of any room or rooms in a hotel for at least 90 consecutive days shall be considered a permanent resident with regard to the period of such occupancy.

RENT

The consideration received for occupancy valued in money, whether received in money or otherwise.

ROOM

Any room or rooms of any kind in any part or portion of a hotel, which is available for or let out for any purpose other than a place of assembly.

For purposes of the tax imposed under § 556-18F, the following terms shall have the meanings indicated:

ACTIVE ANNUAL MEMBER

A member who is not a life member but who enjoys full club privileges as distinguished from the privileges enjoyed by a person holding a nonresident membership, an associate membership or other partial or restricted membership.

ADMISSION CHARGE

The amount paid for admission, including any service charge and any charge for entertainment or amusement or for the use of facilities therefor.

AMUSEMENT CHARGE

Any admission charge, dues or charge of a roof garden, cabaret or other similar place.

Any charge made for admission, refreshment, service or merchandise at a roof garden cabaret or other similar place.

DRAMATIC OR MUSICAL ARTS ADMISSION CHARGE

Any admission charge paid for admission to a theater, opera house, concert hall or other hall or place of assembly for a live dramatic, choreographic or musical performance.

DUES

Any dues or membership fee, including any assessment, irrespective of the purpose for which made, and any charges for social or sports privileges or facilities. Dues of a life member shall be an annual equivalent to the amount paid as dues, within this definition, by an active annual member, whether or not the life member paid for his life membership prior to the imposition of the tax by this article.

INITIATION FEE

Any payment, contribution or loan required as a condition precedent to membership, whether or not such payment, contribution or loan is evidenced by a certificate of interest or indebtedness or share of stock, and irrespective of the person or organization to whom paid, contributed or loaned.

LESSOR

Any person who is the owner, licensee or lessee of any place of amusement or roof garden, cabaret or other similar place which he leases, subleases or grants a license to use to other persons who make amusement charges or admission charges.

PATRON

Any person who pays an amusement charge or who is otherwise required to pay the tax imposed under § 556-18F.

PLACE OF AMUSEMENT

Any place where any facilities for entertainment, amusement or sports are provided.

RECIPIENT

Any person who collects or receives or is under a duty to collect an amusement charge.

ROOF GARDEN, CABARET OR OTHER SIMILAR PLACE

Any roof garden, cabaret or other similar place which furnishes a public performance for profit.

SOCIAL OR ATHLETIC CLUB

Any club or organization of which a material purpose or activity is social or athletic.

§ 556-18 Imposition of sales tax.

[Amended 1-21-1969; 7-6-1971; 12-9-1971]

On and after March 1, 1972, there is hereby imposed and there shall be paid a tax of 3% upon:

The receipts from every retail sale of tangible personal property, except as otherwise provided in this article.

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.

Services.

The receipts from every sale, except for resale, of the following services:

The furnishing of information by printed, mimeographed or multigraphed matter or by duplicating written or printed matter in any other manner, including the services of collecting, compiling or analyzing information of any kind or 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.

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.

Installing tangible personal property or maintaining, servicing or repairing tangible personal property 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, except 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, and except any receipts from laundering, dry cleaning, tailoring, weaving, pressing, shoe repairing and shoe shining, and except 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" or "land" are defined in the Real Property Tax Law, and except such services rendered with respect to commercial vessels primarily engaged in interstate or foreign commerce and property used by or purchased for the use of such vessels for fuel, provisions, supplies, maintenance and repairs, other than with respect to articles purchased for the original equipping of a new ship; provided, however, that nothing contained in this subsection shall be construed to exclude from tax under this subsection or under Subsection B of this section any charge, made by a person furnishing service subject to tax under Subsection B of this section, for installing property at the premises of a purchaser of such a taxable service for use in connection with such service.

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 New York State 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, 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.

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) are not receipts subject to the taxes imposed under such subsection.

Food and alcoholic beverages.

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 county 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:

In all instances where the sale is for consumption on the premises where sold;

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; and

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.

The tax imposed by this subsection shall not apply to:

Food or drink which is sold to an airline for consumption while in flight.

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 Subdivision (a) of § 1116 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.

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.

[Added 2-6-1973]

The rent for every occupancy of a room or rooms in a hotel in this City, 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.

Charges.

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 City, except charges for admission to racetracks, boxing, sparring or wrestling matches or exhibitions which charges are taxed under the laws of this state, except taxes imposed by Article 28 of the Tax Law of the State of New York, 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.

The dues paid to any social or athletic club in this City 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, 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, 1968. In the case of a life membership, the tax shall be upon the annual amount paid by active annual members as dues, whether or not the life member paid for or was admitted to such membership prior to the imposition of the tax under this article, and shall be paid annually by the person holding such life membership at the time for payment of dues by active annual members.

The amount paid as charges of a roof garden, cabaret or other similar place in the state.

§ 556-19 Transitional provisions.

The taxes imposed under § 556-18A, C and D shall be paid upon all sales made and services rendered on or after March 1, 1968, although made on or rendered under a prior contract, except as provided in § 556-29, and except that a delivery or transfer of possession of tangible personal property made after said date pursuant to an agreement for the sale of said property made before November 1, 1967, shall not be subject to tax if:

Such agreement for the sale of said property was made in writing;

The particular item or items of property so sold or agreed to be sold were segregated, before November 1, 1967, from any other similar property in the possession of the vendor and identified as having been appropriated to such sale or agreement of sale; and

The purchaser, before March 1, 1968, shall have paid to the vendor not less than 10% of the sale price of said property.

The tax imposed under § 556-18B shall be paid with respect to receipts for property or services sold on or after March 1, 1968, although made under a prior contract. Where property or service is sold on a monthly, quarterly or other term basis and the bills for such property or service are based on meter readings, the amount received on each bill for such property or service for a month or other term shall be a receipt subject to the tax, but such tax shall be applicable to all bills based on meters read on or after March 1, 1968, only where more than 1/2 of the number of days included in the month or other period billed are days subsequent to February 29, 1968; provided, however, that where such bills are for telephone or telegraph service, the tax shall apply to all receipts on such bills dated on or after March 1, 1968, for which no previous bill was rendered, except, however, charges for services furnished before the date of the first of such bills.

The tax imposed under § 556-18E shall be paid upon any occupancy on and after March 1, 1968, although such occupancy is pursuant to a prior contract, lease or other arrangement. Where rent is paid on a weekly, monthly or other term basis, the rent shall be subject to the tax imposed under § 556-18E to the extent that it covers any period on and after March 1, 1968, and such rent shall be apportioned on the basis of the ratio of the number of days falling within said period to the total number of days covered thereby.

Except as otherwise hereinafter provided, the tax imposed under § 556-18F shall be applicable to any admission to or the use of facilities of a place of amusement occurring on or after March 1, 1968, whether or not the admission charge has been paid prior to such date, unless the tickets were actually sold and delivered, other than for resale, prior to March 1, 1968, to a person attending the performance occurring on or after such date.

A refund or credit equal to the amount of the sales or compensating use tax paid on the sale or use of tangible personal property, under a local law, ordinance or resolution imposed pursuant to the authority of Chapter 873 of the Laws of 1934, as amended, or Chapter 278 of the Laws of 1947, as amended, shall be allowed, upon application to the Tax Commission as provided for herein, where such property has been used by the purchaser or user in performing the services subject to tax under § 556-18C(1)(a), (b), (c) and (e) and such property has become a physical component part of the property upon which the services are performed or has been transferred to the purchaser of the service in conjunction with the performance of the service subject to tax, except that such refund or credit may not exceed the combined state and local taxes, if any, paid pursuant to Article 28 of the Tax Law and under the tax imposed by this article on the sale or use of the service in connection with which such property was used. No interest shall be allowed or paid upon any refund made or credit allowed pursuant to this subsection.

With respect to the additional tax of 1% imposed effective March 1, 1972, the provisions of Subsections A, B, C, D and E of this section apply, except that for the purposes of this subsection, all references in said Subsections A, B, C and D to March 1, 1968 should be read as referring to March 1, 1972, all references in said Subsection A to November 1, 1967, shall be read as referring to November 1, 1971, and the reference in said Subsection B to February 29, 1968, shall be read as referring to February 29, 1972. Nothing herein contained shall be deemed to exempt from tax at the rate in effect prior to March 1, 1972, any transactions which may not be subject to the additional tax imposed effective on that date.

[Added 12-9-1971]

§ 556-20 Imposition of compensating use tax.

[Amended 7-6-1971; 12-9-1971]

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 City on and after March 1, 1972, except as otherwise exempted under this article:

Of any tangible personal property purchased at retail.

Of any tangible personal property manufactured, processed or assembled by the user if items of the same kind of tangible personal property are offered for sale by him in the regular course of business.

Of any of the services described in § 556-18C(1)(a).

Of any tangible personal property, however acquired, where not acquired for purposes of resale, upon which any of the services described under § 556-18C(1)(b) and (c) have been performed.

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, but excluding any credit for tangible personal property accepted in part payment and intended for resale, plus the cost of transportation, except where such cost is separately stated in the written contract, if any, and on the bill rendered to the purchaser.

For purposes of Subsection A(2) 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.

Notwithstanding the foregoing, for the 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" or "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.

For purposes of Subsection A(3) and (4) of this section, the tax shall 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 performance of the service, plus the cost of transportation of property so transferred and of the tangible personal property upon which the service was performed, except where such cost is separately stated in the written contract, if any, and on the bill rendered to the purchaser.

§ 556-21 Imposition of additional rate of sales and compensating use taxes.

[Added 2-28-2003[1]; amended 8-2-2005[2]]

Pursuant to the authority of § 1210 of the Tax Law, in addition to the sales and compensating use taxes imposed by §§ 556-18 and 556-20 of this article, there is hereby imposed and shall be paid an additional one-percent rate of such sales and compensating use taxes, for the period beginning June 1, 2003, and ending November 30, 2007. Such additional taxes shall be identical to the taxes imposed by such §§ 556-18 and 556-20 and shall be administered and collected in the same manner as such taxes. All of the provisions of this article relating to or applicable to the administration and collection of the taxes imposed by such §§ 556-18 and 556-20 shall apply to the additional taxes imposed by this section, including the applicable transitional provisions, limitations, special provisions, exemptions, exclusions, refunds and credits as are set forth in this article, with the same force and effect as if those provisions had been incorporated in full into this section and had expressly referred to the additional taxes imposed by this section.

[1]

Editor's Note: This resolution provided for an effective date of 6-1-2003.

[2]

Editor's Note: This resolution provided for an effective date of 12-1-2005.

§ 556-22 Computation of receipts and consideration.

The retail sales tax imposed under § 556-18A and the compensating use tax imposed under § 556-20, when computed in respect to tangible personal property, whenever manufactured, processed or assembled and used by such manufacturer, producer or assembler in the regular course of business within this county, shall be based on the price at which items of the same kind of tangible personal property are offered for sale by him, except to the extent otherwise provided in § 556-20 hereof.

[Amended 7-6-1971]

Tangible personal property, which has been purchased by a resident of this City outside of this City for use outside of this City and subsequently becomes subject to the compensating use tax imposed under this article, shall be taxed on the basis of the purchase price of such property; provided, however, that:

Where a taxpayer affirmatively shows that the property was used outside this City by him for more than six months prior to its use within this City, such property shall be taxed on the basis of current market value of the property at the time of its first use within this City. The value of such property, for compensating use tax purposes, may not exceed its cost.

The compensating use tax on such tangible personal property brought into this City, other than for complete consumption or for incorporation into real property located in this City, and used in the performance of a contract or subcontract within this City by a purchaser or user for a period of less than six months may be based, at the option of the taxpayer, on the fair rental value of such property for the period of use within this City.

With respect to property leased or sold under a contract deferring payments, the tax shall be payable at such times and in such amounts as may be prescribed by the State Tax Commission as provided in § 1132 of the Tax Law.

If the State Tax Commission has prescribed or shall prescribe schedules of the amount of tax to be collected upon each gallon of motor fuel and diesel motor fuel sold at retail service stations, and upon each pack of cigarettes, as provided in § 1111 of the Tax Law, the tax thereon shall be collected as prescribed in such schedules.

§ 556-23 Exempt sales.

Receipts from the following shall be exempt from the tax on retail sales imposed under § 556-18A and the compensating use tax imposed under § 556-20:

Food, food products, beverages, dietary foods and health supplements sold for human consumption, but not including candy and confectionery; fruit drinks which contain less than 70% of natural fruit juice; soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith, other than coffee, tea and cocoa; and beer, wine or other alcoholic beverages, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. Nothing herein shall be construed as exempting food or drink from the tax imposed under § 556-18D.

Water, when delivered to the consumer through mains and pipes.

Drugs and medicines intended for use, internally or externally, in the cure, mitigation, treatment or prevention of illnesses or diseases in human beings and products consumed by humans for the preservation of health, but not including medical equipment and supplies other than such drugs and medicines or cosmetics or toilet articles, notwithstanding the presence of medicinal ingredients therein.

Prosthetic aids, hearing aids or eyeglasses and artificial devices designed for the use of a particular individual to correct or alleviate physical incapacity.

(5)

Newspapers and periodicals.

(6)

Tangible personal property, except property incorporated in a building or structure, for use or consumption directly and exclusively in the production for sale of tangible personal property by farming, including stock, dairy, poultry, fruit, fur-bearing animal and truck farming. The term "farming" shall also include ranching, operating nurseries, greenhouses or other similar structures used primarily for the raising of agricultural, horticultural or floricultural commodities and operating orchards.

[Amended 1-21-1969]

(7)

Tangible personal property sold by a mortician, undertaker or funeral director; however, all tangible personal property sold to a mortician, undertaker or funeral director for use in the conducting of funerals shall not be deemed a sale for resale within the meaning of § 556-17B of this article and shall not be exempt from the retail sales tax.

(8)

Commercial vessels primarily engaged in interstate or foreign commerce and property used by or purchased for the use of such vessels for fuel, provisions, supplies, maintenance and repairs, other than articles purchased for the original equipping of a new ship.

(9)

Fuel sold to an airline for use in its airplanes.

(10)

Tangible personal property purchased for use or consumption directly and exclusively in research and development in the experimental or laboratory sense. Such research and development shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotions or research in connection with literary, historical or similar projects.

(11)

The flags of the United States of America and the State of New York.

(12)

Tangible personal property sold through coin-operated vending machines at $0.10 or less, provided that the retailer is primarily engaged in making such sales and maintains records satisfactory to the State Tax Commission.

(13)

Motor vehicles, as such term is defined in § 125 of the Vehicle and Traffic Law, sold by a husband or wife to his or her spouse, or by a parent to his or her child, or by a child to his or her parent; provided, however, that this exemption shall not apply if the vendor is a dealer as defined in § 415 of the Vehicle and Traffic Law.

[Added 7-6-1971; amended 2-6-1973]

(14)

Tangible personal property sold to a contractor, subcontractor or repairman for use in erecting a structure or building of an organization described in § 556-24A or adding to, altering or improving real property, property or land of such an organization, as the terms "real property," "property" or "land" are defined in the Real Property Tax Law; provided, however, that no exemption shall exist under this subsection unless such tangible personal property is to become an integral component part of such structure, building or real property and is to be resold to such organization as tangible personal property before it has become a part of such structure, building or real property.

[Added 7-6-1971]

(15)

Tangible personal property sold to a contractor, subcontractor or repairman for use in maintaining, servicing or repairing real property, property or land of an organization described in § 556-24A, as the terms "real property," "property" or "land" are defined in the Real Property Tax Law.

[Added 7-6-1971]

(16)

Tangible personal property sold by a contractor, subcontractor or repairman to a person other than an organization described in § 556-24A, for whom he is adding to or improving real property, property or land by a capital improvement, or for whom he is about to do any of the foregoing, if such tangible personal property is to become an integral component part of such structure, building or real property; provided, however, that if such sale is made pursuant to a contract irrevocably entered into before September 1, 1969, no exemption shall exist under this subsection.

[Added 7-6-1971]

Services.

Telephony and telegraphy and telephone and telegraph service used by newspapers, radio broadcasters and television broadcasters in the collection or dissemination of news shall be exempt from the tax imposed under § 556-18B if the charge for such services is a toll charge or a charge for mileage services, including the associated station terminal equipment.

Gas, electricity, refrigeration and steam, and gas, electric, refrigeration and steam service of whatever nature for use or consumption directly and exclusively in research and development in the experimental or laboratory sense shall be exempt from the tax imposed under § 556-18B. Such research and development shall not be deemed to include the ordinary testing or inspection of materials or products for quality control, efficiency surveys, management studies, consumer surveys, advertising, promotions or research in connection with literary, historical or similar projects.

All sales of tangible personal property for use or consumption directly and exclusively in the production of tangible personal property, gas, electricity, refrigeration or steam, for sale, by manufacturing, processing, generating, assembling, refining, mining, extracting, farming, agriculture, horticulture or floriculture, and all sales of telephone central office equipment and station apparatus or comparable telegraph equipment for use directly and exclusively in receiving at destination or in initiating and switching telephone or telegraph communication shall be exempt from the taxes imposed under § 556-18A and B.

[Amended 1-21-1969]

Services otherwise taxable under § 556-18C(1), (2) and (3) shall be exempt from tax under this article if the tangible personal property upon which the services were performed is delivered to the purchaser outside this City for use outside this City.

Telephone and telegraph service paid for by inserting coins in coin-operated telephones where the charge is $0.10 or less shall be exempt from the tax imposed under § 556-18B.

Services rendered by a veterinarian licensed and registered as required by the Education Law which constitute the practice of veterinary medicine as defined in said law, including hospitalization for which no separate boarding charge is made, shall not be subject to tax under § 556-18C(1)(c), but the exemption allowed by this subsection shall not apply to other services provided by a veterinarian to pets and other animals, including but not limited to boarding, grooming and clipping. Articles of tangible personal property designed for use in some manner relating to domestic animals or poultry, when sold by such a veterinarian, shall not be subject to tax under § 556-18A or 556-20; however, the sale of any such articles of tangible personal property to a veterinarian shall not be deemed a sale for resale within the meaning of § 556-17B and shall not be exempt from retail sales tax.

Services otherwise taxable under § 556-18C(3) shall be exempt from tax if performed upon prosthetic aids, hearing aids or eyeglasses and artificial devices designed for the use of a particular individual to correct or alleviate physical incapacity.[1]

[Added 7-6-1971]

[1]

Editor's Note: Original Subsection H, regarding the City tax exemption on clothing and footwear, which immediately followed this subsection, was repealed 11-20-2001, effective 3-1-2002.

§ 556-24 Exempt organizations.

Except as otherwise provided in this section, any sale or amusement charge by or to any of the following or any use or occupancy by any of the following shall not be subject to the sales and compensating use taxes imposed under this article:

The State of New York or any of its agencies, instrumentalities, public corporations, including a public corporation created pursuant to agreement or compact with another state or Canada, or political subdivisions where it is the purchaser, user or consumer or where it is a vendor of services or property of a kind not ordinarily sold by private persons.

The United States of America and any of its agencies and instrumentalities, insofar as it is immune from taxation where it is the purchaser, user or consumer or where it sells services or property of a kind not ordinarily sold by private persons.

The United Nations or any international organization of which the United States of America is a member where it is the purchaser, user or consumer or where it sells services or property of a kind not ordinarily sold by private persons.

Any corporation, association, trust or community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation, and which does not participate in, or intervene in, including the publishing or distributing of statements, any political campaign on behalf of any candidate for public office.

Nothing in this section shall exempt the following from the taxes imposed hereunder, unless the purchaser is an organization exempt under this section:

[Amended 1-21-1969]

Retail sales of tangible personal property by any shop or store operated by an organization described in Subsection A(4) of this section; or

Sales of food or drink in or by a restaurant, tavern or other establishment operated by an organization described in Subsection A(1) or (4) of this section, other than sales exempt under § 556-18D(2).

Where any organization described in Subsection A(4) of this section carries on its activities in furtherance of the purposes for which it was organized in premises in which, as part of said activities, it operates a hotel, occupancy of rooms in the premises and rents therefrom received by such corporation or association shall not be subject to tax hereunder.

Admission charges.

Except as provided in Subsection D(2), any admissions all of the proceeds of which inure exclusively to the benefit of the following organizations shall not be subject to any of the taxes imposed under § 556-18F:

An organization described in Subsection A(4) of this section.

A society or organization conducted for the sole purpose of maintaining symphony orchestras or operas and receiving substantial support from voluntary contributions.

National Guard organizations, posts or organizations of war veterans or auxiliary units or societies of any such posts or organizations, if such posts, organizations, units or societies are organized in this state, and if no part of their net earnings inures to the benefit of any private stockholder or individual.

A Police or Fire Department of a political subdivision of the state, or a voluntary fire or ambulance company or exclusively to a retirement, pension or disability fund for the sole benefit of members of a Police or Fire Department or to a fund for the heirs of such members.

The exemption provided under Subsection D(1) shall not apply in the case of admissions to:

Any athletic game or exhibition unless the proceeds shall inure exclusively to the benefit of elementary or secondary schools or unless in the case of an athletic game between two elementary or secondary schools, the entire gross proceeds from such game shall inure to the benefit of one or more organizations described in Subsection A(4) of this section.

Carnivals, rodeos or circuses in which any professional performer or operator participates for compensation.

Admission charges for admission to the following places or events shall not be subject to any of the taxes imposed under § 556-18F:

Any admission to agricultural fairs if no part of the net earnings thereof inures to the benefit of any stockholders or members of the association conducting the same, provided that the proceeds therefrom are used exclusively for the improvement, maintenance and operation of such agricultural fairs.

Any admission to a home or garden which is temporarily open to the general public as a part of a program conducted by a society or organization to permit the inspection of historical homes and gardens, provided that no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

Any admissions to historic sites, houses and shrines and museums conducted in connection therewith, maintained and operated by a society or organization devoted to the preservation and maintenance of such historic sites, houses, shrines and museums, provided that no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

§ 556-25 Deliveries.

Where a sale of tangible personal property or services other than those described in § 556-18B, including an agreement therefor, is made in this City, but the property sold or the property upon which the services were performed is or will be delivered to the purchaser elsewhere, such sale shall not be subject to tax under this article; however, if delivery occurs or will occur in a City, county or school district imposing a tax on the sale or use of such property, pursuant to the authority of Article 29 of the Tax Law, the vendor shall be required to collect from the purchaser, as provided in § 1254 of the Tax Law of the State of New York, the aggregate sales or compensating use taxes imposed by the City, if any, county and school district in which delivery occurs or will occur, for distribution by the State Tax Commission to such taxing jurisdiction or jurisdictions.

Where a sale of tangible personal property or services other than those described in § 556-18B, including an agreement therefor, is made outside this City, but the property sold or the property upon which the services were performed is or will be delivered to the purchaser in this City, such sale and use of such property or services shall be subject to tax under this article, and the vendor shall be required to collect from the purchaser, as provided in § 1254 of the Tax Law of the State of New York, the sale or use tax imposed by this article, for distribution by the State Tax Commission to this City.

For the purposes of this section, "delivery" shall be deemed to include transfer of possession to the purchaser and the receiving of the property by the purchaser.

§ 556-26 Sale of motor vehicles.

Sale to nonresident.

Where a sale of a motor vehicle, including an agreement therefor, is made in this City to a nonresident thereof, such sale shall not be subject to tax under this article, despite the fact that such motor vehicle is delivered to the purchaser within this City, provided that the purchaser furnishes to the vendor, prior to taking delivery, proof satisfactory to the Tax Commission that the purchaser:

Is a nonresident of this City;

Has no permanent place of abode within this City;

Is not engaged in carrying on in this City any employment, trade, business or profession in which the motor vehicle will be used in this City; and

Such other proof as the Tax Commission may require to ensure proper administration of the taxes imposed under § 556-18A.

However, if the purchaser resides in a City, county or school district imposing a tax on the use of such motor vehicle, the vendor shall be required to collect from the purchaser, as provided in § 1254 of the Tax Law of the State of New York, the aggregate compensating use taxes imposed by the City, if any, county and school district in which the purchaser resides, for distribution by the State Tax Commission to such taxing jurisdiction or jurisdictions.

A vendor shall not be liable for failure to collect tax on such sale of a motor vehicle, provided that the proof furnished to him by the purchaser pursuant to Subsection A of this section shows that the purchaser's residence is not in any City, county or school district which imposes a tax on the use of such motor vehicle, and provided that the vendor keeps such proof available for inspection by the Tax Commission, and further provided that such proof is not known by the vendor, prior to making physical delivery of the motor vehicle, to be false.

For purposes of this section, the term "motor vehicle" shall include a motor vehicle as defined in § 125 of the Vehicle and Traffic Law of the State of New York and a trailer as defined in § 156 of such law.

§ 556-27 Applicability.

Any tax imposed under the authority of this article shall apply only within the territorial limits of this City.

§ 556-28 Exempt uses.

The following uses of property shall not be subject to the compensating use tax imposed under this article:

Certain property uses:

In respect to the use of property used by the purchaser in this City prior to March 1, 1968.

With respect to the additional tax of 1% imposed for the period beginning June 1, 2003, and ending November 30, 2007, in respect to the use of property used by the purchaser in this City prior to June 1, 2003.

[Added 2-28-2003; amended 8-2-2005[1]]

[1]

Editor's Note: This resolution provided for an effective date of 12-1-2005.

In respect to the use of property purchased by the user while a nonresident of this City, except in the case of tangible personal property which the user, in the performance of a contract, incorporates into real property located in the City. A person, while engaged in any manner in carrying on in this City any employment, trade, business or profession, shall not be deemed a nonresident with respect to the use in this City of property in such employment, trade, business or profession.

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 § 556-18A, B or C.

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.

In respect to the use of paper in the publication of newspapers and periodicals.

Corresponding exemption:

[Amended 1-21-1969]

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.

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.

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.

§ 556-29 Refunds or credits.

Property.

Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to § 556-18A or § 556-20:

On the sale or use within this City of tangible personal property if the purchaser or user, in the performance of a contract, later incorporates that tangible personal property into real property located outside this City.

On the sale or use of tangible personal property purchased in bulk or any portion thereof which is stored and not used by the purchaser or user within this City if that property is subsequently reshipped by such purchaser or user to a point outside this City for use outside this City.

On the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him solely in the performance of a preexisting lump-sum or unit-price construction contract.

On the sale or use within this City of tangible personal property not purchased for resale, if the use of such property in this City is restricted to fabricating such property, including incorporating it into or assembling it with other tangible personal property, processing, printing or imprinting such property and such property is then shipped to a point outside this City for use outside this City.

For the purpose of Subsection A(1)(c) of this subsection, the term "preexisting lump-sum or unit-price construction contract" shall mean a contract for the construction of improvements to real property under which the amount payable to the contractor or subcontractor is fixed without regard to the costs incurred by him in the performance thereof and which was irrevocably entered into prior to the date of the enactment of this article or the enactment of a resolution or local law increasing the rate of tax imposed under this article or resulted from the acceptance by a governmental agency of a bid accompanied by a bond or other performance guaranty which was irrevocably submitted prior to such date.

Where the tax on the sale or use of such tangible personal property has been paid to the vendor, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in Subsection A(1)(a) above, reshipped as required in Subsection A(1)(b) above or used in the manner described in Subsection A(1)(c) or (d) above within three years after the date such tax was payable to the State Tax Commission by the vendor pursuant to § 1137 of the Tax Law.