Publication 774 - Purchaser'S Obligations To Pay Sales And Use Taxes Directly To The Tax Department Questions And Answers - Nys Department Of Taxation And Finance Page 11
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20Publication 774 (2/11)
Some examples of tax-exempt items of tangible personal property are:
prescription and non-prescription drugs and medicines used for humans;
certain medical equipment and supplies used for humans; newspapers;
periodicals; most food items; U.S. and New York State flags; Indian arts and
crafts when purchased on an Indian reservation; used mobile homes; and
college textbooks purchased by full and part-time college students for their
courses.
Only certain services are subject to sales tax. Taxable services include:
maintaining, servicing, and repairing tangible personal property (for
example, auto and appliance repairs); and maintaining, servicing, and
repairing real property such as land and buildings (for example, services
such as house repairs and lawn maintenance).
Some examples of nontaxable services are laundering and dry cleaning
(including carpet and rug cleaning services); veterinary services (except for
grooming and boarding); and legal, accounting, and medical services.
For more information on taxable and exempt goods and services, see
Publication 750, A Guide to Sales Tax in New York State, and Tax Bulletin
Quick Reference Guide for Taxable and Exempt Property and Services
(TB-ST-740).
5. What price do
The sales tax is generally computed on the price you paid for an item or
you use to
service, including any shipping or handling charges made by the seller.
determine the
However, there are two instances where a New York State resident’s tax due
amount of tax
is not based on the purchase price of the item or service:
due?
• If you used the item outside of New York for more than six months
prior to bringing the item into New York, the amount subject to tax is
the lesser of the purchase price or the fair market value at the time you
bring the item into New York State.
• In the case of tangible personal property brought into New York State
to be used in the performance of a contract for a period of less than six
months, the amount subject to tax may, at the election of the user, be
based on the fair rental value of the property for the period of its use
within New York State, but only if the property is not completely
consumed, or incorporated into real property, in New York State.
In these instances, a lower amount of tax may be due. The same six-month
rule applies for purposes of computing local tax due. The following
examples illustrate how you would compute the amount of New York State
use tax due on purchases made outside New York State, and subsequently
brought to New York State for use.
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