Albany County, NY Sales and Use Tax

A sale of tangible personal property to any person for any purpose, other than (A) for resale as such or as a physical component part of tangible personal property, or (B) for use by that person in performing the services subject to tax under Subsection C(1), (2), (3) and (5) of § 270-2 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 repairperson for use or consumption in erecting structures or buildings, or building on, or otherwise adding to, altering, improving 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 12-15-1969]

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.

SALE, SELLING OR PURCHASE

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

(d)

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 the issuance of its stock.

(f)

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 § 270-2B, 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

The term "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 County of Albany 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 County of Albany of tangible personal property or services, the use of which is taxed by this article; and

(d)

Any other person making sales to persons within the County of Albany 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 New York Tax Law § 1101(b)(8)(ii).

When used in this article for the purposes of the tax imposed under § 270-2E, the following terms shall have the following meanings:

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.

When used in this article for purposes of the tax imposed under § 270-2F, 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/her 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/she 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 § 270-2F.

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, a material purpose or activity of which is social or athletic.

§ 270-2 Imposition of sales tax.

[Amended 12-15-1969; 8-2-1993 by L.L. No. 6-1993; 9-12-1994 by L.L. No. 3-1994;[1] 9-11-1995 by L.L. No. 4-1995; 9-8-1997 by L.L. No. 5-1997; 9-28-1999 by L.L. No. 5-1999; 9-28-2001 by L.L. No. 4-2001; 9-25-2003 by L.L. No. 5-2003; 9-14-2005 by L.L. No. 2-2005; 9-13-2007 by L.L. No. 5-2007; 9-14-2009 by L.L. No. 7-2009; 8-17-2011 by L.L. No. 4-2011; 10-31-2013 by L.L. No. 3-2013; 10-13-2015 by L.L. No. 7-2015; 8-14-2017 by L.L. No. 5-2017; 9-14-2020 by L.L. No. 4-2020]

On and after March 1, 1970, there is hereby imposed and there shall be paid a tax of 3% upon, and for the period commencing September 1, 1992, and ending November 30, 2023, there is hereby imposed and there shall be paid an additional tax at the rate of 1% 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.

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/her for resale, upon which such services are performed.

Installing tangible personal property, or maintaining, servicing, 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/her residence and who is not in a regular trade or business offering his/her 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.

(5)

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/her 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.

(6)

Wages, salaries and other compensation paid by an employer to an employee for performing as an employee the services described in Subsection C(1) through (5) are not receipts subject to the taxes imposed under such subsections.

Establishments selling alcoholic beverages.

Irrespective of price, when beer, wine or other alcoholic beverages are sold, or when the charge to the patron or customer is $1 or more for a sale of food and drink of any nature, or of food alone, receipts from every such sale 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, and consists of a meal or food prepared and ready to be eaten, of a kind obtainable in restaurants as the main course of a meal, including a sandwich, except where food other than sandwiches is sold, in an unheated state and is of a type commonly sold in the same form and condition in food stores other than those which are principally engaged in selling prepared foods.

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/she is served, provided 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 Education Law § 216.

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

Establishments imposing admission 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 County, 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 County 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.[2]

[2]

Editor's Note: Original Section 2-A, Tax rate on certain energy sources and related services, added 9-8-1980 by L.L. No. 7-1980, as amended, which immediately followed this subsection, was repealed 1-21-1998 by L.L. No. 1-1998.

[1]

Editor's Note: This article was amended 12-20-1994 by L.L. No. 1-1995 to provide that it shall take effect 6-1-1995 rather than upon adoption.

§ 270-3 Exemption of certain energy sources and related services from additional rate of tax.

[Added 7-29-1992; amended 8-2-1993 by L.L. No. 6-1993; 9-12-1994 by L.L. No. 3-1994; 9-11-1995 by L.L. No. 4-1995; 9-8-1997 by L.L. No. 5-1997; 9-28-1999 by L.L. No. 5-1999; 9-28-2001 by L.L. No. 4-2001; 9-25-2003 by L.L. No. 5-2003; 9-14-2005 by L.L. No. 2-2005; 9-13-2007 by L.L. No. 5-2007; 9-14-2009 by L.L. No. 7-2009; 8-17-2011 by L.L. No. 4-2011; 10-31-2013 by L.L. No. 3-2013; 10-13-2015 by L.L. No. 7-2015; 8-14-2017 by L.L. No. 5-2017; 9-14-2020 by L.L. No. 4-2020]

Notwithstanding any inconsistent provision of this article, receipts from the sale of property and services described in § 270-2 of this article and consideration given or contracted to be given for such property and services shall be exempt from the additional 1% rate of sales and compensating use taxes imposed by §§ 270-2 and 270-5, respectively, of this article for the period commencing September 1, 1992, and ending November 30, 2023.

§ 270-4 Transitional provisions.

The taxes imposed under § 270-2A, 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 period contract, except as provided in § 270-13, 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 § 270-2B 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 § 270-2E 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 such Subsection E 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 § 270-2F 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 § 270-2C(1), (2), (3) and (5) 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, 1970, 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" shall be read as referring to "March 1, 1970," all references in said Subsection A to "November 1, 1967" shall be read as referring to "November 1, 1969," and the reference in said Subsection B to "February 29, 1968" shall be read as referring to "February 28, 1970." Nothing herein contained shall be deemed to exempt from tax at the rate in effect prior to March 1, 1970, any transactions which may not be subject to the additional tax imposed effective on that date.

[Added 12-15-1969]

With respect to the additional tax of 1% imposed for the period commencing September 1, 1992, and ending November 30, 2023, 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 an effective date shall be read as referring to September 1, 1992, all references in said Subsection A to the date four months prior to the effective date shall be read as referring to May 1, 1992, and the reference in Subsection B to the date immediately preceding the effective date shall be read as referring to August 31, 1992. Nothing herein shall be deemed to exempt from tax at the rate in effect prior to September 1, 1992, any transaction which may not be subject to the additional tax imposed effective on that date.

§ 270-5 Imposition of compensating use tax.

[Amended 12-15-1969; 7-29-1992 by L.L. No. R for 1992; 8-2-1993 by L.L. No. 6-1993; 9-12-1994 by L.L. No. 3-1994; 9-11-1995 by L.L. No. 4-1995; 9-8-1997 by L.L. No. 5-1997; 9-28-1999 by L.L. No. 5-1999; 9-28-2001 by L.L. No. 4-2001; 9-25-2003 by L.L. No. 5-2003; 9-14-2005 by L.L. No. 2-2005; 9-13-2007 by L.L. No. 5-2007; 9-14-2009 by L.L. No. 7-2009; 8-17-2011 by L.L. No. 4-2011; 10-31-2013 by L.L. No. 3-2013; 10-13-2015 by L.L. No. 7-2015; 8-14-2017 by L.L. No. 5-2017; 9-14-2020 by L.L. No. 4-2020]

Except to the extent that property or services have already been or will be subject to the sales tax under this enactment, there is hereby imposed on every person a use tax for the use within this taxing jurisdiction on and after September 1, 1992, except as otherwise exempted under this enactment:

Of any tangible personal property purchased at retail;

Of any tangible personal property (other than computer software used by the author or other creator) manufactured, processed or assembled by the user:

If items of the same kind of tangible personal property are offered for sale by him/her in the regular course of business; or

If items are used as such or incorporated into a structure, building or real property, by a contractor, subcontractor or repairperson 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, if items of the same kind are not offered for sale as such by such contractors, subcontractor or repairperson or other user in the regular course of business.

Of any of the services described in § 270-2C(1);

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]

Of any tangible personal property, however acquired, where not acquired for purposes of resale, upon which any of the services described under § 270-2C(2) and (3) have been performed;

[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]

(5)

Of any telephone answering service described in § 270-2B; and

(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.

For purposes of Subsection A(1) of this section, for the period commencing September 1, 1992, and ending November 30, 2023, the tax shall be at the rate of 4%, and on and after December 1, 2023, 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 the definition of "receipt" in § 270-1B, but excluding any credit for tangible personal property accepted in part payment and intended for resale.

For purposes of Subsection A(2)(a) of this section, for the period commencing September 1, 1992, and ending November 30, 2023, the tax shall be at the rate of 4%, and on and after December 1, 2023, 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/her.

For purposes of Subsection A(2)(b) of this section, for the period commencing September 1, 1992, and ending November 30, 2023, the tax shall be at the rate of 4%, and on and after December 1, 2023, 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 the definition of "receipt" in § 270-1B.

Notwithstanding the foregoing provision 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/she 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), (4) and (5) of this section, for the period commencing September 1, 1992, and ending November 30, 2023, the tax shall be at the rate of 4%, and on and after December 1, 2023, 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 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 the definition of "receipt" in § 270-1B.

For purposes of Subsection A(6) of this section, for the period commencing September 1, 1992, and ending November 30, 2023, the tax shall be at the rate of 4%, and on and after December 1, 2023, 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.[1]

[1]

Editor's Note: Original Section 4-B, Rate of sales and compensating use taxes on motor and diesel fuel, added 6-13-2006 by L.L. No. 7-2006, which immediately followed this section, was repealed 12-19-2006 by L.L. No. 12-2006.

§ 270-6 Special rules for computing receipts and consideration.

The retail sales tax imposed under § 270-2A and the compensating use tax imposed under § 270-5, 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/her, except to the extent otherwise provided in § 270-5 hereof.

[Amended 12-15-1969]

Tangible personal property which has been purchased by a resident of this County outside of this County for use outside of this County 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 County by him/her for more than six months prior to its use within this County, such property shall be taxed on the basis of current market value of the property at the time of its first use within this County. The value of such property, for compensating use tax purposes, may not exceed its cost.

That the compensating use tax on such tangible personal property brought into this County (other than for complete consumption or for incorporation into real property located in this County) and used in the performance of a contract or subcontract within this County 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 County.

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

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 Tax Law § 1111, the tax thereon shall be collected as prescribed in such schedules.

§ 270-7 Exemptions from sales and use taxes.

Receipts from the following shall be exempt from the tax on retail sales imposed under § 270-2A and the compensating use tax imposed under § 270-5:

Food, food products, beverages, dietary foods and health supplements, sold for human consumption, but not including a) candy and confectionery, b) fruit drinks which contain less than 70% of natural fruit juice, c) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and d) 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 § 270-2D.

Water, when delivered to the consumer through mains or 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 animals 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 12-15-1969]

(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 "retail sale" in § 270-1 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 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 Vehicle and Traffic Law § 125, sold by a husband or wife to his/her spouse; provided, however, this exemption shall not apply if the vendor is a dealer as defined in Vehicle and Traffic Law § 415.

[Added 12-15-1969]

(14)

Tangible personal property sold to a contractor, subcontractor or repairperson for use or consumption in erecting a structure or building of an organization described in § 270-8A, or adding to, altering, improving or repairing 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, no exemption shall exist under this subsection unless such tangible personal property:

[Added 12-15-1969]

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.

(15)

Tangible personal property sold by a contractor, subcontractor or repairperson to a person other than an organization described in § 270-8A, for whom he/she is adding to, or improving real property, property or land by a capital improvement, or for whom he/she 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 unless the sale of such tangible personal property to such contractor, subcontractor or repairperson was a taxable retail sale at the time it occurred.[1]

[Added 12-15-1969]

[1]

Editor's Note: Original Subsection (16), regarding exempting residential heating fuels from taxes, which immediately followed this subsection, was repealed 1-21-1998 by L.L. No. 1-1998.

Utility 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 § 270-2B 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 § 270-2B. 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, 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 § 270-2A and B.

Services otherwise taxable under § 270-2C(1), (2) or (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 County for use outside this County.

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 § 270-2B.

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 § 270-2C(3), 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 § 270-2A or under § 270-5. 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 "retail sale" in § 270-1 and shall not be exempt from retail sales tax.

Services otherwise taxable under § 270-2C(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.

[Added 12-15-1969]

Fuel oil and coal for residential purposes.

[Added 1-21-1998 by L.L. No. 1-1998]

Receipts from the retail sale or use of fuel oil and coal used for residential purposes, the retail sale or use of wood used for residential heating purposes, and the sale, other than for resale, of propane (except when sold in containers of less than 100 pounds), natural gas, electricity, steam and gas, electric and steam services used for residential purposes shall be exempt from the taxes imposed by this article. The provisions of this subsection shall not apply to a sale or use of a) diesel motor fuel which involves a delivery at a filling station or into a repository which is equipped with a hose or other apparatus by which such fuel can be dispensed into the fuel tank of a motor vehicle and b) enhanced diesel motor fuel, except in the case of a sale or use of such enhanced diesel motor fuel used exclusively for residential purposes which is delivered into a storage tank which is not equipped with a hose or other apparatus by which such fuel can be dispensed into the fuel tank of a motor vehicle and such storage tank is attached to the heating unit burning such fuel, provided that each delivery of such fuel of over 4,500 gallons shall be evidenced by a certificate signed by the purchaser stating that the product will be used exclusively for residential purposes.

The exemption set forth in this subsection shall apply to receipts from all retail sales and uses described in Subsection H(1) made, rendered or arising therefrom on or after March 1, 1998, although made on or rendered under a prior contract, if delivery or transfer of possession of such property or services is made after such date. Where such property or service is sold on a monthly, quarterly or other term basis, and the bills for such property or services are based on meter readings, the amount received on each bill for such property or service for a month, quarter or other term shall be exempt, but such exemption shall be applicable to all bills based on meters read on or after March 1, 1998, only where more than 1/2 of the number of days included in the month or other period billed are days subsequent to February 28, 1998.

Where a residence is a part of a multiple dwelling or other premises consisting of residential and nonresidential units, or where a portion of a residence is used for non-dwelling purposes, including the conduct of a trade or business, the same rules and regulations shall be applicable that have been established by the Commissioner of Taxation and Finance in order to allocate to such residence the portion of the sale of energy sources or services attributable to the residential portion.

If the Commissioner of Taxation and Finance has prescribed a certificate to be taken by the vendor of the energy sources or services specified in Subsection H(1) from the purchaser of such energy sources or services, such certificate shall be applicable for the purposes of this section. When a certificate is required, unless such vendor shall have received such certificate in such form as the Commissioner may prescribe, signed by the purchaser and setting forth the purchaser's name and address, together with such other information as the Commissioner may require, stating that the premises, for which such energy sources or services are purchased, is used solely as a residence or identifying the residential portion of premises, for which such energy sources or services are purchased, including instances where a multiple dwelling unit or other premises consists of residential and nonresidential units or where a portion of a residence is used for non-dwelling purposes, such as the conduct of a trade or business, the provisions of this subsection shall not apply and the tax shall be imposed at the rate provided for in §§ 270-2 and 270-5 of this article. No further certificate need be furnished for any subsequent purchase for such premises if the information set forth in the certificate last furnished the vendor has not materially changed; except that in the case of exempt purchases of enhanced diesel motor fuel in amounts of over 4,500 gallons, a separate certificate must be furnished for each purchase.

Receipts from sales of and consideration given or contracted to be given for purchases of clothing and footwear exempt from state sales and compensating use taxes pursuant to Paragraph (30) of Subdivision (a) of § 1115 of the New York Tax Law during the periods commencing August 26, 2003, and ending September 1, 2003, and commencing January 26, 2004, and ending February 1, 2004, shall also be exempt during such periods from sales and compensating use taxes imposed by this article.

[Added 7-15-2003 by L.L. No. 2-2003[2]]

[2]

Editor's Note: Section 2 of this article provided that it shall take effect 6-1-2003 and shall apply during the applicable exemption periods in accordance with the applicable transitional provisions of Art. 29 of the New York Tax Law and shall expire 5-31-2004 and be deemed repealed.

Receipts from sales of and consideration given or contracted to be given for, or for the use of, property and services exempt from state sales and compensating use taxes pursuant to Subdivision (ee) of § 1115 of the New York Tax Law shall also be exempt from sales and compensating use taxes imposed in this jurisdiction.

[Added 4-4-2006 by L.L. No. 3-2006[3]]

[3]

Editor's Note: Section 2 of this article provided that it shall take effect 6-1-2006 and shall apply to sales made, services rendered and uses occurring on and after that date in accordance with the applicable transitional provisions in New York Tax Law §§ 1106, 1216 and 1217.

§ 270-8 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; and

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:

[Amended 12-15-1969]

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 § 270-2D(2), from the taxes imposed hereunder, unless the purchaser is an organization exempt under this section.

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.

Admissions.

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 § 270-2F:

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; or

(d)

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; or

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 § 270-2F:

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 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 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 no part of the net earnings thereof inures to the benefit of any private stockholder or individual.

§ 270-9 Deliveries outside County; deliveries within County and property sold or serviced elsewhere.

Where a sale of tangible personal property or services other than those described in § 270-2B, including an agreement therefor, is made in this County, 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 New York Tax Law § 1254, 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 § 270-2B, including an agreement therefor, is made outside this County, but the property sold or the property upon which the services were performed is or will be delivered to the purchaser in this County, 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 State of New York Tax Law § 1254, the sales or use tax imposed by this article, for distribution by the State Tax Commission of this County.

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.

§ 270-10 Certain sales of motor vehicles; proof required for registration of motor vehicles.

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

Is a nonresident of this County;

Has no permanent place of abode within this County;

Is not engaged in carrying on in this County any employment, trade, business or profession in which the motor vehicle will be used in this County, and such other proof as the Tax Commission may require to ensure proper administration of the taxes imposed under § 270-2A. 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 New York Tax Law § 1254, 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 the proof furnished to him/her 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 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 New York Vehicle and Traffic Law § 125, and a trailer as defined in § 156 of such law.

§ 270-11 Territorial limitations.

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

§ 270-12 Exemptions from compensating use tax.

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

Use of property used by purchaser in County.

[Amended 7-29-1992; 8-2-1993 by L.L. No. 6-1993; 9-12-1994 by L.L. No. 3-1994; 9-11-1995 by L.L. No. 4-1995; 9-8-1997 by L.L. No. 5-1997; 9-28-1999 by L.L. No. 5-1999; 9-28-2001 by L.L. No. 4-2001; 9-25-2003 by L.L. No. 5-2003]

With respect to the use of property used by the purchaser in this County prior to March 1, 1970.

With respect to the additional tax of 1% imposed for the period beginning September 1, 1992, and ending November 30, 2023, with respect to the use of property used by the purchaser in this County prior to September 1, 1992.

[Amended 9-14-2005 by L.L. No. 2-2005; 9-13-2007 by L.L. No. 5-2007; 9-14-2009 by L.L. No. 7-2009; 8-17-2011 by L.L. No. 4-2011; 10-31-2013 by L.L. No. 3-2013; 10-13-2015 by L.L. No. 7-2015; 8-14-2017 by L.L. No. 5-2017; 9-14-2020 by L.L. No. 4-2020]

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

With respect to the use of property or services upon the sale of which the purchaser would be expressly exempt from the taxes imposed under § 270-2A, B or C.

With respect to the use of property which is converted into or becomes a component part of a product produced for sale by the purchaser.

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

Taxes due and paid by other state or municipal entities.

[Amended 12-15-1969]

With 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 a) any municipal corporation in this state; or b) 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).

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) 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.

§ 270-13 Refunds or credits based on proof of certain uses.

[Amended 12-15-1969]

Subject to the conditions and limitations provided for herein, a refund or credit shall be allowed for a tax paid pursuant to § 270-2A or § 270-5A: 1) on the sale or use 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 taxing jurisdiction, 2) 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 taxing jurisdiction if that property is subsequently reshipped by such purchaser or user to a point outside this taxing jurisdiction for use outside this taxing jurisdiction, 3) on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used by him/her solely in the performance of a preexisting lump sum or unit price construction contract, 4) on the sale or use within this taxing jurisdiction of tangible personal property, not purchased for resale, if the use of such property in this taxing jurisdiction 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 taxing jurisdiction for use outside this taxing jurisdiction, 5) on the sale to or use by a veterinarian of drugs or medicine if such drugs or medicine are used by such veterinarian in rendering services, which are exempt pursuant to § 270-7F of this article, to livestock or poultry used in the production for sale of tangible personal property by farming or if such drugs or medicine are sold to a person qualifying for the exemption provided for in § 270-7A(6) of this article for use by such person on such livestock or poultry, or 6) on the sale of tangible personal property purchased for use in constructing, expanding or rehabilitating industrial or commercial real property (other than property used or to be used exclusively by one or more registered vendors primarily engaged in the retail sale of tangible personal property) located in an area designated as an Empire Zone pursuant to Article 18-B of the General Municipal Law, but only to the extent that such property becomes an integral component part of the real property. [For the purpose of clause 3) of the preceding sentence, 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/her in the performance thereof, and which a) was irrevocably entered into prior to the date of the enactment of this enactment or the enactment of a law increasing the rate of tax imposed under this enactment, or b) 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 clause 1) above, reshipped as required in clause 2) above, used in the manner described in clauses 3), 4), 5) and 6) above within three years after the date such tax was payable to the Commissioner of Taxation and Finance by the vendor pursuant to Tax Law § 1137. Where the tax on the sale or use of such tangible personal property was paid by the applicant for the credit or refund directly to such Commissioner, to qualify for such refund or credit, such tangible personal property must be incorporated into real property as required in clause 1) above, reshipped as required in clause 2) above, used in the manner described in clauses 3), 4), 5) and 6) above within three years after the date such tax was payable to such Commissioner by such applicant pursuant to Article 28 of the Tax Law. An application for a refund or credit pursuant to this section must be filed with such Commissioner within the time provided by Subdivision (a) of § 1139 of the Tax Law. Such application shall be in such form as such Commissioner may prescribe. Where an application for credit has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he/she files his/her application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit and shall be subject to the provisions in respect to applications for credit in Tax Law § 1139 as provided in Subdivision (e) of such section. With respect to a sale or use described in clause 3) above where a preexisting lump-sum or unit-price construction contract was irrevocably entered into prior to the date of the enactment of this enactment or the bid accompanied by the performance guaranty was irrevocably submitted to the governmental agency prior to such date, the purchaser or user shall be entitled to a refund or credit only of the amount of the taxes imposed by this enactment enacted later than the date of such contract or bid, or of the amount reflecting an increase in the rate of tax enacted later than said date, as the case may be, but only to the extent that all such sales and use taxes paid on such sale or use under the aggregate statewide and local taxes imposed under Article 28 of the Tax Law and by authority of Article 29 of the Tax Law exceeded an amount computed by applying against such sale or use the aggregate of the rates of statewide and local sales and use taxes that were in effect at the time such contract was entered into or such bid was submitted.

[Amended 11-27-2000 by L.L. No. 7-2000]

A refund or credit equal to the amount of sales or compensating use tax imposed by §§ 270-2 and 270-5, and paid on the sale or use of tangible personal property, shall be allowed where such property has been used by the purchaser or user in performing the services subject to tax under § 270-2C(1), (2), (3) and (5) 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.

Subject to the conditions and limitations provided herein, a contractor, subcontractor or repairperson shall be allowed a credit for a tax paid pursuant to § 270-2A or § 270-5 on the sale or use of tangible personal property if he/she later uses such property in performing a service subject to the tax imposed under § 270-2C(3) or (5) and such property becomes a physical component part of the property upon which the services are performed or the property is actually transferred to the purchaser of the service in conjunction with the performance of the service subject to tax, or if he/she later makes a retail sale of such tangible personal property, the acquisition of which would not have been a sale at retail to him/her but for the last sentence of Subsection A of the definition of "retail sale" in § 270-1 of this article.

§ 270-14 Administration and collection.

[Amended 12-15-1969]

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(b), 1119, 1120 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 Tax Law § 1250.

§ 270-15 Disposition of revenues.

[Amended 12-15-1969]

Net collections distributed to the County by the State Tax Commission shall be disposed of as follows, pursuant to Tax Law § 1262:

60% of such monies is hereby set aside for County purposes and shall be available for any County purpose.

[Amended 7-13-1981 by L.L. No. 5-1981; 12-7-1982 by L.L. No. 3-1982; 12-21-1983 by L.L. No. 8-1983; 12-3-1984 by L.L. No. 5-1984; 1-6-1986 by L.L. No. 1-1986; 11-10-1986 by L.L. No. 6-1986]

The remainder of such monies shall be allocated quarterly to the cities and the area in the County outside the cities in proportion to their respective populations, determined in accordance with the latest decennial federal census or special population census taken pursuant to General Municipal Law § 20, completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the County. The amount so allocated to the area outside the cities shall be applied first to reduce County taxes levied upon real property in the several towns in such area. Any balance remaining shall then be applied to reduce general town taxes levied upon real property in such area. Any town, by local law, ordinance or resolution, however, may provide that the amounts which would be so applied to reduce the County taxes and general town taxes levied upon real property in such town shall be paid directly to such town to be used for any town purpose. If any village, by local law, ordinance or resolution, shall so provide, the amounts which would be so applied to reduce the County and general town taxes levied upon real property in such village shall be paid directly to such village in lieu of such tax reduction. Where any village has elected to be paid directly as provided in this subsection, the amount to be paid to such village shall be determined by the ratio that the full valuation of real property in the village or portion thereof within the town in which such village is located bears to the full valuation of real property in the entire town. If a village wholly or partially within a town has so elected to be paid directly, but the town in which such village is located has not so elected, the amount allocated to the town in which such village is wholly or partially situated shall be applied to reduce County taxes and general town taxes in the area of the town outside such village. If the amount allocated to a town exceeds the amount of the County taxes and general town taxes levied upon real property in the town, the excess shall be apportioned between the town and each village, if any, wholly or partially situated therein, in the ratios that the full valuation of real property in each such village or portion thereof within the town, and the full valuation of real property in the portion of the town outside of such village or villages, respectively, bear to the aggregate full valuation of the entire town. The share of each such village shall be paid directly to such village. The share of the town shall be applied, first, to reduce taxes levied for part-town activities, and any balance remaining shall be paid directly to the town, to be used only for part-town activities.

The amount to be applied in reduction of County taxes and general town taxes in each town shall be determined on the basis of the respective populations of the several towns in such County, determined in accordance with the latest federal census or special population census taken pursuant to General Municipal Law § 20, completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the County.

The amount allocated to each city shall be similarly applied to reduce the County tax levied upon real property in such city, except that if any such city, by local law, ordinance or resolution, shall so provide, the amount which would be so applied to reduce the County tax levied upon real property in such city shall be paid directly to the city in lieu of such tax reduction. If the amount allocated to a city exceeds the amount of the County tax levied upon real property in such city, such excess shall be paid to such city.