Sales and use tax: Tax expenditure estimates

Sales and use tax: Tax expenditure estimates

This section of the report provides tax expenditure descriptions and estimates for 164 provisions of the sales and use tax law. The list of expenditures is based on the tax law in effect as of January 1, 2025. The tax expenditure estimates only pertain to the state portion of the tax and do not include estimates of the revenue foregone by local governments levying sales and use taxes.

The report presents historical estimates for calendar years 2018 through 2022. Table 5 lists the tax expenditures and provides historical year and projected 2025 estimates. It also lists the years for which data are available. For recently added tax expenditures, the report displays historical estimates only for years the item existed as a tax expenditure. The effective dates recorded in the report refer to the date the applicable provision took effect.

Description of tax

The New York State sales and use tax was enacted in 1965 and took effect August 1, 1965. This tax applies primarily to retail sales of tangible personal property in New York State. The sales and use tax also applies to a variety of services, notably, services to real or personal property, telephone service, and commercial energy use. Hotel occupancy, restaurant meals and certain admissions are also taxed. Generally, the tax base includes tangible personal property unless the law provides a specific exclusion or exemption and does not include services unless the law specifically enumerates the service as taxable.

The tax law provides manufacturers with exemptions for the purchase, repair, and maintenance of machinery and equipment used in production. Other exempt items include food, medicine, residential energy, and sales to exempt organizations. Although most services are not subject to sales or use tax, this report examines only services which are specifically exempted by New York.

The Department of Taxation and Finance administers the sales and use tax for the state and its constituent jurisdictions that also impose the tax. The state rate equals 4 percent. Local rates range from 3 percent to 4.75 percent. Communities within the Metropolitan Commuter Transportation District are subject to an additional 3/8 of 1 percent tax rate. In state fiscal year 2023–24, the Tax Department collected about $18.7 billion for the State and approximately $23.0 billion for local governments from sales and use taxes.

Data sources

Most sales tax expenditure estimates use aggregate, non-tax data sources. This is because no tax return data exists for the many exclusions and exemptions. Thus, the estimates are only suggestive of the revenue loss associated with each provision. Estimates are rounded to the nearest million dollars.

Data sources used to compute the tax expenditure estimates include:

• Federal government publications and surveys such as the U.S. Census Bureau’s Economic Census;
• New York State data resources from Open New York's open data portal; and
• Industry surveys and information, such as the information provided by the Solar Energy Industries Association.

Methodology

The report bases the historical estimates on the most recent data available. If data are not available for a particular year covered by the report, the tax expenditure is estimated from the most recent data. For example, where 2019 represents the latest year for which relevant data are available, the 2019 data are used to derive historical estimates. Historical estimates may vary from prior year reports due to the availability of more recent data. From the most recent data, tax expenditure estimates are projected to 2025 levels. 

A sales tax transaction can be exempt from tax because the good or service is exempt or because its use, purchaser, or seller is exempt. In valuing the exemptions, no account is taken of the fact that if the good or service were made taxable, some of the transactions would remain exempt because of the nature of the use, purchaser, or seller. Hence, the value of a particular good or service may be included in two or more tax expenditure estimates. Because of this overlapping, the revenue value of eliminating an exemption would not necessarily coincide with the estimated value herein.

Services

1. Certain information services

Citation: Tax Law § 1105(c)(1)

Effective date: August 1, 1965; September 1, 1995, for meteorological services; March 1, 2012, for electronic news services

Description: An exclusion is allowed for the furnishing of information that is personal or individual in nature, the services of advertising or other agents acting in a representative capacity, information services used by newspapers, electronic news services, radio broadcasters, and television broadcasters in the collection and dissemination of news, and meteorological services.

2. Certain information services provided over the telephone

Citation: Tax Law § 1105(c)(9)

Effective date: September 1, 1990

Description: An information service that would be exempt from tax if delivered in printed form is also exempt from tax when provided over the telephone. This exemption complements § 1105(c)(1), which is Item number 1 above.

3. Services performed on a non-trade basis

Citation: Tax Law §§ 1105(c)(3)(i),  1105(c)(5)(i)

Effective date: August 1, 1965

Description: An exclusion is allowed for installation, repair, and maintenance services rendered by an individual who is engaged directly by a private homeowner or lessee and who is not in a regular trade or business offering those services to the public.

4. Laundering, tailoring, shoe repair, and similar services

Citation: Tax Law § 1105(c)(3)(ii)

Effective date: August 1, 1965

Description: Charges for laundering, dry cleaning, tailoring, weaving, pressing, shoe repairing, and shoe shining are excluded from tax.

5. Capital improvement installation services

Citation: Tax Law § 1105(c)(3)(iii)

Effective date: August 1, 1965

Description: An exclusion is allowed for installing property which, when installed, will constitute an addition or capital improvement to real property.

6. Services related to railroad rolling stock

Citation: Tax Law § 1105(c)(3)(viii)

Effective date: September 1, 1985

Description: Excluded from tax are repair and maintenance services rendered with respect to railroad rolling stock primarily engaged in carrying freight, but not including any charge for parts.

7. Services to property delivered outside New York

Citation: Tax Law § 1115(d)

Effective date: August 1, 1965

Description: Services to tangible personal property are exempt when the property is delivered outside New York State for use outside the state.

8. Municipal parking services

Citation: Tax Law § 1105(c)(6)

Effective date: December 1, 1996

Description: Charges for parking, garaging, or storing motor vehicles are exempt at facilities owned and operated by local governments and local public parking authorities.

9. Parking and garaging at a private residence

Citation: Tax Law § 1105(c)(6)

Effective date: June 1, 1990

Description: Charges for parking, garaging or storing vehicles at a garage that constitutes part of the premises occupied solely as a private one- or two-family dwelling are exempt.

10. Certain protective and detective services

Citation: Tax Law § 1105(c)(8)

Effective date: June 1, 1990

Description: Protective and detective services provided by a security officer licensed by the New York Waterfront Commission or the waterfront commission of New York harbor are exempt from tax.

11. Medical emergency alarm call services

Citation: Tax Law § 1115(r)

Effective date: September 1, 1994

Description: Exempt from tax are medical emergency alarm services.

12. Coin-operated car wash services

Citation: Tax Law § 1115(t)

Effective date: December 1, 1997; December 1, 2004, for certain vacuuming services; December 1, 2005, for additional automated services.

Description: The sales tax exempts the service of washing, waxing, or vacuuming a motor vehicle or other property by means of coin-operated equipment.

13. Trash removal from a waste transfer facility

Citation: Tax Law § 1105(c)(5)(iv)

Effective date: December 1, 2005

Description: Excluded from tax is the removal of waste material from a waste transfer station or construction and demolition debris processing facility, where the waste to be removed was not originally generated by the facility.

14. Transportation services in connection with funerals

Citation: Tax Law § 1101(b)(34)

Effective date: June 1, 2009

Description: Excluded from tax is the transportation service of transporting persons in connection with funerals.

15. Transportation services provided by affiliated livery vehicles

Citation: Tax Law § 1101(b)(34)

Effective date: June 1, 2009

Description: Charges for transportation services provided by affiliated livery vehicles within New York City are excluded from the sales tax on certain transportation services.

16. Water and sewer service line protection programs

Citation: Tax Law § 1115(ii)

Effective date: October 21, 2013

Description: Water and sewer service line protection programs sold to owners of residential property are exempt from tax.

Food

17. Certain food products

Citation: Tax Law §§ 1115(a)(1), 1105(d)(i)(3)

Effective date: August 1, 1965

Description: Exempt from tax are food, food products, beverages, dietary foods, and health supplements sold for human consumption. The exemption does not include candy and confectionery, fruit drinks which contain less than 70 percent of natural fruit juice, soft drinks, sodas, beer, wine, or other alcoholic beverages. Sales of food (other than sandwiches) or drink of a type commonly sold in food stores are exempt when sold by a restaurant or other establishment unheated and for off-premises consumption.

18. Food sold to airlines

Citation: Tax Law § 1105(d)(ii)(A)

Effective date: August 1, 1965

Description: The sales tax does not apply to food or drink that is sold to an airline for consumption by passengers while in flight.

19. Food sold at school cafeterias

Citation: Tax Law § 1105(d)(ii)(B)

Effective date: September 1, 1968

Description: Food or drink sold to nursery school, kindergarten, elementary, or secondary school students at a restaurant or cafeteria located at the school is excluded from tax. Also excluded are food and nonalcoholic beverages sold at a restaurant, tavern, or other establishment located on the premises of a college or university when sold to enrolled students under a contractual arrangement whereby the students do not pay cash at the time they are served.

20. Food purchased with Supplemental Nutrition Assistance Program benefits

Citation: Tax Law § 1115(k)

Effective date: October 1, 1987

Description: Food and beverages eligible to be purchased with the Supplemental Nutrition Assistance Program (formerly known as food stamps) are exempt from tax.

21. Water delivered through mains or pipes

Citation: Tax Law § 1115(a)(2)

Effective date: August 1, 1965

Description: Water delivered to consumers through mains or pipes is exempt.

22. Mandatory gratuity charges

Citation: Tax Law § 1105(d) and NYS Regulation § 27.8(l)

Effective date: August 1, 1965

Description: A separately stated charge specifically designated as a gratuity is exempt where all such monies received are paid over to employees.

23. Alcoholic beverage tastings

Citation: Tax Law §§ 1105(d)(ii), 1115(a)(33), 1115(a)(45), 1118(13)

Effective date: December 1, 1997, for wine; April 13, 2015, for kegs, cans, bottles, corks, caps, and labels; June 1, 2015, for beer, cider and liquor; March 28, 2019, for mead and beer samples

Description: Wine, beer, cider, liquor, and mead furnished at a tasting held in accordance with the alcoholic beverage control law to a customer or prospective customer for consumption at the tasting is exempt from tax. Also exempt are kegs, cans, bottles, corks, caps, and labels used to package the alcoholic beverages served at the tastings. In addition, certain beer samples sold by a licensed brewery or farm brewery are exempt from tax. 

24. Vending machine sales of hot drinks and certain foods

Citation: Tax Law § 1105(d)(i)(3)

Effective date: December 1, 1997; December 1, 1999, for credit/debit card-operated machines

Description: Exempt from tax are hot drinks sold through coin-operated vending machines and vending machines accepting credit cards or debit cards. In addition, vending machine sales of other food and beverage, including food and beverage sold for on-premises consumption, are exempt if the food or beverage would be exempt when sold at a grocery store.

25. Vending machine sales of candy, juice, soft drinks and bottled water

Citation: Tax Law § 1115(a)(1)

Effective date: September 1, 2000; $2.00 exemption and inclusion of bottled water effective June 1, 2019

Description: Candy, fruit drinks, soft drinks and bottled water sold for $2.00 or less are exempt from tax when sold from a vending machine that accepts forms of payment other than coin or currency. For vending machines that only accept coin and currency, the exemption threshold is $1.50. For June 1, 2014, through May 31, 2019, the exemption threshold was $1.50.

Termination date: Expires May 31, 2025

26. Food sold at senior citizen housing communities

Citation: Tax Law § 1115(w)

Effective date: December 1, 2000

Description: Sales by a senior citizen independent housing community of food or drink (except alcoholic beverages) for on-premises consumption are exempt from tax when served to residents and their guests at the dining facility or in the resident’s room.

Medical and health

27. Drugs, medicine, and medical supplies

Citation: Tax Law § 1115(a)(3), (g)

Effective date: August 1, 1965, for drugs and medicines; September 1, 1976, for medical equipment and supplies and services to medical equipment

Description: Exempt from tax are drugs and medicines intended for use, internally or externally, in the cure, mitigation, treatment, or prevention of illnesses or diseases in human beings. The exemption extends to medical equipment and supplies and services to medical equipment. This exemption does not include medical equipment and supplies purchased by a person who provides medical or dental services for compensation.

28. Breast pump parts and supplies

Citation: Tax Law § 1115(a)(46)

Effective date: September 1, 2021

Description: Breast pump replacement parts and breast pump collection and storage supplies are exempt from sales tax when purchased by an individual for home use.

29. Menstrual products

Citation: Tax Law § 1115(a)(3-a)

Effective date: September 1, 2016

Description: The retail sale of menstrual products is exempt from tax.

30. Diapers

Citation: Tax Law § 1115(a)(30-a)

Effective date: September 1, 2022

Description: Diapers intended for human use are exempt from sales tax.

31. Eyeglasses, hearing aids, and prosthetic aids

Citation: Tax Law § 1115(a)(4), (g)

Effective date: August 1, 1965 [§ 1115(a)(4)]; September 1, 1969 [§ 1115(g)]

Description: Eyeglasses, hearing aids, prosthetic aids, and artificial devices and component parts purchased to correct physical incapacity in human beings, as well as services performed upon these items, are exempt from tax.

32. Veterinarian services

Citation: Tax Law § 1115(f)(1)

Effective date: June 1, 1967

Description: Services rendered by a licensed veterinarian in the practice of veterinary medicine are exempt from tax. Tangible personal property designed for use by domestic animals or poultry is also exempt when sold by a veterinarian. However, the veterinarian pays sales tax on the purchase of such property.

33. Drugs or medicines used in farm production

Citation: Tax Law § 1115(f)(2)

Effective date: June 1, 2018

Description: Drugs or medicines for use on livestock or poultry used in farm production are exempt from tax. Prior to June 1, 2018, only a refund or credit for tax paid on these drugs or medicines was available.

34. Service dogs

Citation: Tax Law § 1115(s)

Effective date: September 24, 1995

Description: The sale of any good or service necessary to acquire, sustain, or maintain a guide dog, a hearing dog, or a service dog which is used by a person with a disability is exempt.

Energy

35. Residential energy

Citation: Tax Law §§ 1105-A, 1115(a)(25)

Effective date: October 1, 1980 [§ 1105-A]; September 1, 1985 [§ 1115(a)(25)]

Description: Receipts from the retail sale of wood used for residential heating purposes, fuel oil, propane (except when sold in containers that hold less than 100 pounds), natural gas, electricity and steam, and gas, electric, and steam services used for residential purposes are taxed at the rate of zero percent and thus are exempt from State sales tax. Residential use of natural gas obtained from a gas well located on the landowner’s property is exempt.

36. Fuel, gas, electricity, refrigeration, and steam used in research and development and production

Citation: Tax Law § 1115(b)(ii), (c)(1)

Effective date: August 1, 1965

Description: Fuel, gas, electricity, refrigeration, and steam; and gas, electric, refrigeration, and steam service used directly and exclusively in research and development in the experimental or laboratory sense, or used directly and exclusively in the production of tangible personal property, gas, electricity, refrigeration, or steam, for sale, by manufacturing, processing, assembling, generating, refining, mining, or extracting are exempt from the sales tax.

37. Fuel, gas, electricity, refrigeration, and steam used in farming and commercial horse boarding

Citation: Tax Law § 1115(c)(2)

Effective date: September 1, 2000

Description: Fuel, gas, electricity, refrigeration, and steam; and gas, electric, refrigeration, and steam service used in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation are exempt from tax. 

38. Gas and electricity used in transmission, distribution and storage

Citation: Tax Law § 1115(w)

Effective date: June 1, 2000

Description: Gas or electricity or gas or electric service used directly and exclusively to provide gas or electric service consisting of operating a gas pipeline or gas distribution line or an electric transmission or distribution line and ensuring the necessary working pressure in an underground gas storage facility is exempt.

39. Residential solar energy systems

Citation: Tax Law § 1115(ee)(1)

Effective date: September 1, 2005

Description: Residential solar energy systems equipment and the service of installing such systems is exempt from tax.

40. Commercial solar energy systems

Citation: Tax Law § 1115(ii)(1)

Effective date: January 1, 2013

Description: Commercial solar energy systems equipment and the service of installing such systems is exempt from tax.

41. Solar power purchase agreements

Citation: Tax Law § 1115(ee)(2), (ii)(2)

Effective date: December 1, 2015

Description: Electricity sold by a solar energy company is exempt when the electricity is generated by equipment owned by the solar energy company and installed at the purchaser’s residential or nonresidential premises.

42. Commercial fuel cell electricity generating systems equipment

Citation: Tax Law § 1115(kk)

Effective date: June 1, 2016

Description: Exempt from tax is the retail sale of commercial fuel cell electricity generating systems equipment and the service of installing and maintaining the systems. Electricity generated by a fuel cell is also eligible for the exemption from sales tax under certain circumstances.

43. Residential energy storage systems equipment

Citation: Tax Law § 1115(a)(11)

Effective date: June 1, 2024

Description: Residential energy storage systems, the service of installing such systems and the sale of electricity generated by such equipment is exempt from tax.

Termination date: Expires May 31, 2026

44. Electricity, refrigeration, and steam sold by certain cooperative corporations

Citation: Tax Law § 1115(b)(iii)

Effective date: March 1, 2006

Description: Exempt from tax are electricity, steam, and refrigeration produced by a cogeneration facility owned and operated by certain cooperative corporations and distributed to tenants.

45. Automotive fuel receipts exceeding two dollars per gallon

Citation: Tax Law § 1111(m)

Effective date: June 1, 2006

Description: Certain motor fuel and diesel motor fuel sales are subject to tax at the rate of 8 cents per gallon. This effectively exempts the portion of the taxable receipt exceeding two dollars per gallon.

46. Alternative fuels

Citation: Tax Law § 1115(a)(42)

Effective date: September 1, 2006

Description: E85, CNG, or hydrogen is exempt from sales tax when used directly and exclusively in the engine of a motor vehicle.

Termination date: Expires August 31, 2026

47. B20 bio-diesel fuel

Citation: Tax Law § 1111(n)

Effective date: September 1, 2006

Description: Bio-diesel fuel that is B20 is exempt from 20 percent of the cents-per-gallon sales tax rate imposed on certain sales of diesel motor fuel.

Termination date: Expires August 31, 2026

Transportation

48. Commercial vessels

Citation: Tax Law §§ 1101(b)(16), 1105(c)(3)(iv), 1115(a)(8)

Effective date: August 1, 1965 [§§ 1105(c)(3)(iv), 1115(a)(8)]; December 1, 1996 [§ 1101(b)(16)]

Description: Sales of 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 are exempt. Services rendered with respect to commercial vessels are also exempt.

49. Vessels

Citation: Tax Law § 1115(jj)

Effective date: June 1, 2015

Description: Receipts in excess of $230,000 for a vessel [as defined in the Vehicle and Traffic Law § 2250], including any outboard motor or trailer when sold in conjunction with the vessel, are exempt from sales tax.

50. Barge repairs

Citation: Tax Law § 1115(q)

Effective date: December 1, 1993

Description: Exempt from tax are maintenance and repair services (including parts) performed on a barge having a cargo capacity of at least 1,000 short tons used exclusively to transport goods in the conduct of its owner’s business and primarily engaged in transportation between New York State and any other state or foreign country.

51.Commercial aircraft

Citation: Tax Law §§ 1101(b)(17), 1105(c)(3)(v), 1115(a)(21)

Effective date: March 1, 1979 [§ 1105(c)(3)(v), 1115(a)(21)]; December 1, 1996 [§1101(b)(17)]

Description: Exempt from tax are commercial aircraft primarily engaged in intrastate, interstate, or foreign commerce; machinery or equipment to be installed on such aircraft; property used by or purchased for the use of such aircraft for maintenance and repairs; flight simulators purchased by commercial airlines; and services rendered with respect to exempt purchases.

52. General aviation aircraft

Citation: Tax Law § 1115(a)(21-a)

Effective date: September 1, 2015

Description: General aviation aircraft, and machinery and equipment to be installed on the aircraft, are exempt from sales tax.

53. Fuel sold to airlines

Citation: Tax Law § 1115(a)(9)

Effective date: August 1, 1965

Description: Fuel sold to an airline for use in its airplanes is exempt from tax.

54. Parts for foreign aircraft

Citation: Tax Law § 1118(8)

Effective date: September 1, 1977

Description: Parts, engines, consumable technical supplies, and maintenance and ground equipment used exclusively in the operation, handling, or maintenance of aircraft are exempt from use tax if it is a foreign airline that brings such items into New York from a foreign country. These items must be used on aircraft owned by the foreign airline and are exempt only if similar items would not be subject to tax in the airline’s home country if taken into such country by a U.S. airline.

55. Services to private aircraft

Citation: Tax Law § 1115(dd)

Effective date: December 1, 2004

Description: A sales and use tax exemption is provided for maintenance and certain other services performed on private aircraft, as well as the tangible personal property purchased and used in performing the services and any related storage charges.

56. Intra-family sales of motor vehicles

Citation: Tax Law § 1115(a)(14)

Effective date: September 1, 1969, for transactions between spouses, and September 1, 1972, for transactions between parents and children.

Description: Motor vehicles sold between spouses, or by a parent to a child or child to parent are exempt from tax.

57. Motor vehicles and vessels sold to nonresidents

Citation: Tax Law § 1117(a)

Effective date: August 1, 1965, as amended December 1, 1994, and March 1, 2001

Description: Sales of motor vehicles and vessels in New York to nonresidents are exempt from the sales tax provided the nonresident purchaser is not registering the newly purchased vehicle or vessel for use in New York.

58. Motor vehicles purchased out-of-state by a member of the military service

Citation: Tax Law § 1115(a)(14-a)

Effective date: December 18, 2013

Description: Motor vehicles purchased in another state by a person while they  are in the military service of the United States are exempt from tax.

59. Rental of trucks in certain cases

Citation: Tax Law § 1115(a)(22)

Effective date: May 15, 1981

Description: Certain rentals or leases of trucks, tractors, or tractor-trailer combinations to an authorized carrier, pursuant to a written contractual agreement are exempt. 

60. Tractor-trailer combinations

Citation: Tax Law § 1115(a)(26), (g)

Effective date: January 1, 1988

Description: Exempt from tax are tractors, trailers or semitrailers, and property installed on such vehicles for their equipping, maintenance, or repair, provided the vehicle is used in combination where the gross weight of such combination exceeds 26,000 pounds. Related services performed on these vehicles are also exempt.

61. Sales of property by railroads in reorganization

Citation: Tax Law § 1115(h)

Effective date: August 1, 1975

Description: Sales of tangible personal property by a railroad in reorganization to a profitable railroad are exempt if the transactions are part of a reorganization plan.

62. Commercial buses

Citation: Tax Law § 1115(a)(32), (u)

Effective date: December 1, 1997

Description: Exempt from tax are buses and parts, equipment, and lubricants used in operating the bus, provided the vehicle weighs at least 26,000 pounds and measures 40 feet and is used to transport persons for hire. Related services performed on these vehicles are also exempt.

63. Marine terminal facility equipment

Citation: Tax Law § 1115(a)(41)

Effective date: December 1, 2005

Description: Exempt from tax are machinery and equipment for use directly and predominantly in loading, unloading, and handling cargo at a marine terminal facility located in a city with a population of one million or more which in 2003, handled more than 350,000 twenty-foot equivalent units (TEUs).

64. Ferry boats

Citation: Tax Law § 1115(a)(43)

Effective date: September 1, 2008

Description: Exempt from tax are ferry boats and property used in conjunction with exempt boats for fuel, provisions, supplies, maintenance and repairs.

Communication and media

65. Interstate or international telephone and telegraph service

Citation: Tax Law § 1105(b)

Effective date: August 1, 1965

Description: Charges for interstate and international telephone and telegraph services are exempt.

66. Internet access service

Citation: Tax Law § 1115(v)

Effective date: February 1, 1997

Description: The sales tax exempts Internet access service. Incidental services such as Internet communications or navigation software, an email address, and news headlines when offered in conjunction with Internet access are considered part of the exempt service.

67. Cable television service

Citation: Tax Law § 1105(c)(9)

Effective date: September 1, 1990

Description: Cable television service is exempt from tax.

68. Newspapers and periodicals

Citation: Tax Law §§ 1101(b)(6), 1115(a)(5), NYS Regulation § 528.6, 1118(5)

Effective date: August 1, 1965 [§ 1115(a)(5)]; December 1, 1994 [§ 1101(b)(6)]

Description: The sales of newspapers and periodicals are exempt from tax. In addition, the paper and ink used to publish newspapers and periodicals are exempt.

69. Electronic news services and electronic periodicals

Citation: Tax Law § 1115(gg)

Effective date: March 1, 2012

Description: Certain electronic news services and electronic periodicals are exempt from tax.

70. Shopping papers

Citation: Tax Law § 1115(a)(20), (i)

Effective date: September 1, 1977

Description: Receipts from the retail sale of a shopping paper to the publisher are exempt as well as the receipts from the sale of printing services performed in publishing such paper. In addition, the paper and ink used to publish a shopping paper are exempt.

71. Telephone service used by the media

Citation: Tax Law § 1115(b)(i)

Effective date: August 1, 1965; March 1, 2012, for electronic news services

Description: Charges for telephone and telegraph service used by newspapers, electronic news services, radio broadcasters, and television broadcasters in the collection or dissemination of news are exempt if the charges are toll charges or charges for mileage.

72. Certain coin-operated telephone charges

Citation: Tax Law § 1115(e)

Effective date: September 1, 1998

Description: Coin-operated telephone charges of 25 cents or less are exempt.

73. Telecommunications and internet equipment

Citation: Tax Law §§ 1115(a)(12-a), 1105(c)(3)(x)

Effective date: September 1, 2000

Description: Exempt from tax is tangible personal property used directly and predominantly in the receiving, initiating, amplifying, processing, transmitting, re transmitting, switching, or monitoring of switching of telecommunications services for sale or Internet access services for sale.

74. Internet data centers

Citation: Tax Law § 1115(a)(37), (y)

Effective date: September 1, 2000

Description: Machinery, equipment, and certain other tangible personal property sold to a person operating an Internet data center that is required for and directly related to the provision of Internet website hosting and other website services at the data center are exempt. Also exempt are certain services to the exempt tangible personal property and building security services.

75. Radio and television broadcasting

Citation: Tax Law § 1115(a)(38), (aa)

Effective date: September 1, 2000

Description: Exempt from tax are purchases by radio and television broadcasters of machinery, equipment, parts, tools, and supplies used in the production and transmission of live or recorded programs. Installing, maintaining, servicing, or repairing the exempt items is also exempt. Moreover, the services of producing, fabricating, processing, printing, or imprinting tangible personal property furnished to the service provider by the broadcaster and performed in connection with the production, post-production, or the transmission of live or recorded programs are exempt.

76. Film production

Citation: Tax Law §§ 1115(a)(39), 1115(bb)

Effective date: December 1, 2002

Description: Tangible personal property used or consumed directly and predominantly in the production of a film for sale is exempt, regardless of the medium by which the film is conveyed to the purchaser. The exemption also extends to services rendered to the exempt property and to fuel and utility services used directly and exclusively in production.

77. Certain mobile telecommunication services

Citation: Tax Law § 1115(cc)

Effective date: August 1, 2002

Description: The sale of mobile telecommunication services by a home service provider is exempt from tax if the mobile telecommunications customer’s place of primary use is outside of New York State.

Industry

78. Tools and supplies used in production

Citation: Tax Law §§ 1105-B(a), 1115(a)(36)

Effective date: March 1, 1981, December 1, 1998 [§ 1115(a)(36)]

Description: Receipts from the retail sale of parts with a useful life of one year or less, tools and supplies for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration, or steam for sale by manufacturing, processing, generating, assembling, refining, mining, or extracting are exempt from sales tax.

79. Farm production and commercial horse boarding

Citation: Tax Law §§ 1115(a)(6), 1105(c)(3)(vi), 1105(c)(5)(iii)

Effective date: August 1, 1965 [§ 1115(a)(6)]; September 1, 1982 [§ 1105(c)(3)(vi)], September 1, 2000 [§ 1105(c)(5)(iii)]

Description: Exempt from tax is tangible personal property for use or consumption predominantly in the production, for sale, of tangible personal property by farming or in a commercial horse boarding operation. Also exempt are the services of installing, repairing, maintaining, and servicing tangible personal property and real property used predominantly in farming or in a commercial horse boarding operation.

80. Research and development property

Citation: Tax Law § 1115(a)(10)

Effective date: August 1, 1965

Description: Tangible personal property purchased for use or consumption directly and predominantly in research and development in the experimental or laboratory sense is exempt from tax.

81. Machinery and equipment used in production

Citation: Tax Law § 1115(a)(12)

Effective date: August 1, 1965

Description: Exempt from sales tax are machinery and equipment for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrigeration, or steam for sale by manufacturing, processing, generating, assembling, refining, mining, or extracting.

82. Services to machinery and equipment used in production

Citation: Tax Law § 1105-B(b)

Effective date: March 1, 1981

Description: The services of installing, repairing, maintaining, or servicing exempt production machinery and equipment or exempt parts, tools, and supplies are exempt.

83. Wrapping and packaging materials

Citation: Tax Law § 1115(a)(19)

Effective date: July 1, 1974

Description: Cartons, containers, wrapping, and packaging materials and supplies are nontaxable when used by a vendor in packaging or packing tangible personal property for sale and actually transferred to the purchaser.

84. Milk crates

Citation: Tax Law § 1115(a)(19-a)

Effective date: September 1, 2007

Description: Exempt from tax are milk crates purchased by a dairy farmer or licensed milk distributor used exclusively and directly for packaging and delivering milk and milk products to customers.

85. Commercial fishing vessels

Citation: Tax Law §§ 1115(a)(24), 1105(c)(3)(vii)

Effective date: August 1, 1985

Description: Exempt from tax are the sales of commercial fishing vessels used directly and predominantly in the harvesting of fish for sale, and property used by or purchased for the use of such vessels for fuel, provisions, supplies, maintenance, and repairs. Related services are also exempt.

86. Certain services used in gas or oil production

Citation: Tax Law § 1105(c)(3)(ix), (c)(5)

Effective date: December 1, 1998

Description: Exempt from tax are the services of installing, maintaining, repairing, or servicing tangible personal property used directly and predominately in producing gas or oil for sale. Also exempt are maintenance and repair services rendered to real property or land used directly and predominately in producing gas or oil for sale.

87. Pollution control equipment

Citation: Tax Law § 1115(a)(40)

Effective date: March 1, 2001

Description: Machinery or equipment used directly and predominantly in the control, prevention, or abatement of pollution or contaminants from manufacturing or industrial facilities is exempt to the extent not exempted under expenditure Item number 81.

88. Property manufactured by the user

Citation: Tax Law § 1110(c)

Effective date: March 1, 2001

Description: The compensating use tax imposed on certain self-produced items used by a manufacturer on its own premises is computed on the cost of materials rather than on the manufacturer’s normal selling price.

Miscellaneous

89. Certain property sold through vending machines

Citation: Tax Law § 1115(a)(13), (13-a)

Effective date: August 1, 1965 [§ 1115(a)(13)]; 50-cent exemption effective December 1, 1997 [§ 1115(a)(13-a)]

Description: Tangible personal property sold through coin-operated vending machines at 10 cents or less is exempt, provided the retailer is primarily engaged in making such sales. Also exempt is tangible personal property sold through coin-operated  bulk vending machines at 50 cents or less, provided the retailer is primarily engaged in making such sales.

90. Trade-in allowance

Citation: Tax Law § 1101(b)(3)

Effective date: August 1, 1965

Description: A credit for a trade-in on an automobile or other item qualifies as a reduction of the taxable receipts, provided the item traded in is intended for resale by the vendor.

91. Certain hotel room rent

Citation: Tax Law § 1105(e)(1),(2)

Effective date: August 1, 1965

Description: The rent for occupancy of a hotel room by a permanent resident or where the rent is not more than two dollars per day is exempt from tax.

92. Dues for fraternal societies

Citation: Tax Law § 1105(f)(2)(i), 1105(f)(2)(ii)(A), (B)

Effective date: August 1, 1965

Description: Dues and initiation fees paid to a fraternal society, order, or association operating under the lodge system or any fraternal association of students of a college or university are excluded from tax. Dues of $10 or less per year paid to a social or athletic club are also exempt.

93. Homeowner association dues

Citation: Tax Law § 1105(f)(2)(ii)(C)

Effective date: September 1, 1995

Description: The tax law exempts the dues paid to a homeowner association operating social or athletic facilities for its members.

94. Homeowner association parking services

Citation: Tax Law § 1105(c)(6)

Effective date: December 1, 1997

Description: Charges paid by a homeowner association member for parking, garaging, or storing motor vehicles at a facility owned or operated by the association are exempt.

95. Property sold by morticians

Citation: Tax Law § 1115(a)(7)

Effective date: August 1, 1965

Description: Exempt from tax is tangible personal property sold by a mortician, undertaker, or funeral director. However, sales to them for use in conducting funerals do not qualify as a sale for resale and are taxable. 

96. Cemetery monuments

Citation: Tax Law § 1115(a)(44)

Effective date: September 1, 2017; June 1, 2019, for tangible personal property that will become a physical component part of the monument

Description: The retail sale of monuments, as that term is defined in Not-For-Profit Corporation Law § 1502(f), and tangible personal property that will become a physical component part of the monument is exempt from tax. 

97. Flags

Citation: Tax Law § 1115(a)(11)

Effective date: August 1, 1965

Description: Flags of the United States of America and the State of New York are exempt.

98. Military decorations

Citation: Tax Law § 1115(a)(11-a)

Effective date: December 1, 2006

Description: Purchases of military decorations (for example, ribbons, medals, and lapel pins) by a veteran or active member of the United States military are exempt from tax.

99. Military flags and banners

Citation: Tax Law § 1115(a)(11-b)

Effective date: December 1, 2012

Description: Military service flags, prisoner of war flags and blue star banners are exempt from tax.

100. Property manufactured and sold by a veteran

Citation: Tax Law § 1115(a)(18-a)

Effective date: March 1, 2017

Description: Tangible personal property manufactured and sold by a veteran for the benefit of the veteran’s service organization is exempt from tax. The exemption applies to the first $2,500 of such sales in a calendar year.

101. Garage sales

Citation: Tax Law § 1115(a)(18)

Effective date: September 1, 1973

Description: Certain sales of property at private residences are not taxable if the sales do not take place more than three days in a calendar year, are reasonably expected not to exceed $600, if no member of the household conducts a trade or business selling similar products, and the sale is not held to liquidate an estate.

102. New mobile homes

Citation: Tax Law § 1111(f)

Effective date: September 1, 1983

Description: Thirty percent of the receipts or consideration from sales of new mobile homes is exempt from tax.

103. Used mobile homes

Citation: Tax Law § 1115(a)(23)

Effective date: January 1, 1982

Description: Sales of used mobile homes are tax exempt.

104. Modular homes

Citation: Tax Law § 1111(p)

Effective date: December 1, 2009

Description: Forty percent of a vendor's receipt from the sale of a new modular home module is exempt from sales tax.

105. Registered racehorses

Citation: Tax Law § 1115(a)(29)

Effective date: June 1, 1994

Description: Certain registered racehorses purchased or used for entry in events on which pari-mutuel wagering is authorized are exempt. The exemption does not apply to a horse that had never raced in such an event during the first four years of its life.

106. Racehorses purchased through claiming races

Citation: Tax Law § 1111(g)

Effective date: July 1, 1985

Description: The sale in New York of racehorses through claiming races, if not otherwise exempt, is taxable on the full purchase price. However, on the second or later sale of the same horse in the same calendar year within the State, the tax applies only to the excess of the purchase price over the highest of the prior purchase prices.

107. Racehorses purchased out of state

Citation: Tax Law § 1118(9), (10)

Effective date: July 28, 1981 [§ 1118(9)]; July 1, 1985 [§ 1118(10)]

Description: Certain racehorses purchased outside New York and brought into the State for the purpose of entering racing events are exempt from use tax. For racehorses not otherwise exempt and entered in racing events in New York on more than five days, the use tax does not apply to the value of the racehorse in excess of $100,000.

108. Training and maintaining racehorses

Citation: Tax Law § 1115(m)

Effective date: July 19, 1988

Description: Exempt from tax are the services of training and maintaining racehorses. Also exempt is the tangible personal property actually transferred by a trainer to the racehorse owner in conjunction with such services.

109. Property sold to contractors for capital improvements or repairs for exempt organizations

Citation: Tax Law § 1115(a)(15), (16)

Effective date: September 1, 1969

Description: Tangible personal property sold to a contractor, subcontractor, or repairman is exempt from tax if the property is used in erecting structures, maintaining, servicing, repairing, or adding to or altering the real property of an exempt organization and such property becomes an integral component part of the realty.

110. Property donated by a manufacturer to an exempt organization

Citation: Tax Law § 1115(l)

Effective date: September 1, 1986

Description: Tangible personal property manufactured and donated by the manufacturer to an exempt organization is exempt from tax provided that the manufacturer offers the same kind of property for sale in the regular course of business and that the manufacturer has not made any other use of the donated property.

111. Sales and use tax paid to other states

Citation: Tax Law § 1118(7)

Effective date: August 1, 1965

Description: Exempt from tax are property or services upon which a sales or use tax was properly paid to another state, providing such state allows a corresponding exemption for taxable purchases in New York, and no credit or refund is available from such other state. Tax is due to New York to the extent that the tax imposed by New York is at a higher rate than the rate of such other state.

112. Precious metal bullion and coins

Citation: Tax Law § 1115(a)(27)

Effective date: September 1, 1989

Description: Precious metal bullion and coins sold for investment are exempt.

113. Computer software transferred to affiliated corporations

Citation: Tax Law § 1115(a)(28)

Effective date: September 1, 1991

Description: Computer software that was originally purchased as a nontaxable custom computer program and is subsequently sold by the original purchaser to a corporation that is a member of an affiliated group to which the original purchaser also belongs, is exempt from tax.

114. Services to computer software

Citation: Tax Law § 1115(o)

Effective date: September 1, 1991

Description: Installing, maintaining, servicing, or repairing prewritten computer software is exempt from tax.

115. Self-use of prewritten software by its author

Citation: Tax Law § 1110(g)

Effective date: September 1, 1991

Description: The Use Tax on prewritten computer software used by its author or creator is calculated on the cost of the blank medium, such as the disks or tapes, and not at the price at which the software is normally offered for sale.

116. Computer system hardware

Citation: Tax Law § 1115(a)(35)

Effective date: June 1, 1998; March 1, 2001, for internet websites

Description: Exempt from tax are purchases, leases, or rentals of computer system hardware used or consumed directly and predominantly in designing and developing computer software for sale or in providing the service, for sale, of designing and developing internet websites.

117. Promotional materials mailed out of state

Citation: Tax Law § 1115(n)(1), (2)

Effective date: September 1, 1989

Description: Exempt from tax are promotional materials mailed out of state, envelopes, and Cheshire labels used in mailing promotional materials from points in New York State to customers outside New York State. A pro rata exemption is also allowed for charges for the use of a mailing list, in connection with mailing such promotional materials.

118. Printed promotional materials

Citation: Tax Law § 1115(n)(4), (5) and (6)

Effective date: March 1, 1997

Description: Exempt from tax are printed promotional materials distributed by U.S. mail or common carrier. Also exempt are certain services purchased in connection with the exempt promotional materials, such as mailing list services and a printer’s storage service.

119. U.S. postage used in the distribution of promotional materials

Citation: Tax Law § 1115(n)(3)

Effective date: September 1, 1991

Description: Separately stated charges by a vendor to the purchaser of promotional materials, or of taxable services to such promotional material, for the cost of mailing the promotional materials by means of the United States Postal Service are exempt from tax.

120. Clothing and footwear

Citation: Tax Law § 1115(a)(30)

Effective date: March 1, 2000

Description: Exempt from tax are items of clothing and footwear costing less than $110. The exemption also applies to most fabric, thread, yarn, buttons, snaps, hooks, zippers, and like items which become a physical component part of exempt clothing or are used to make or repair the exempt clothing. 

121. Coin-operated photocopying machines

Citation: Tax Law § 1115(a)(31)

Effective date: December 1, 1997

Description: Copies made using a coin-operated photocopy machine where the charge is 50 cents or less per copy are exempt from tax.

122. Luggage carts

Citation: Tax Law § 1115(a)(13-b)

Effective date: December 1, 1997

Description: Exempt from tax are temporary transportation devices (for example, luggage carts) sold through coin-operated equipment, provided the retailer is primarily engaged in making such sales.

123. Emissions testing equipment

Citation: Tax Law § 1115(a)(31)

Effective date: September 1, 1997

Description: Exempt from tax is enhanced emissions inspection equipment certified by the Department of Environmental Conservation for use in an enhanced emissions inspection and maintenance program as required by the federal Clean Air Act of 1990, when purchased by an authorized inspection station.

124. College textbooks

Citation: Tax Law § 1115(a)(34)

Effective date: June 1, 1998

Description: Course textbooks purchased by full or part-time students enrolled in an institution of higher education are exempt.

125. Live dramatic or musical arts production

Citation: Tax Law § 1115(x)

Effective date: March 1, 2001

Description: Exempt from tax are certain items of tangible personal property and certain services that are used directly and predominantly in producing certain live dramatic or musical arts performances.

126. Lower Manhattan commercial office space

Citation: Tax Law § 1115(ee)

Effective date: September 1, 2005

Description: Exempt from tax is a commercial tenant’s, landlord’s, and contractor’s purchases and uses of certain property used to outfit, furnish, and equip certain leased commercial office space in eligible areas in Lower Manhattan.

Termination date: Expires December 1, 2026

127. Dodd-Frank Wall Street Reform and Consumer Protection Act

Citation: Tax Law § 1115(jj)

Effective date: September 1, 2015

Description: A sales tax exemption is granted to certain related-party sales arising as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Termination date: Expires June 30, 2028

Exempt Organizations

128. New York State agencies and political subdivisions

Citation: Tax Law § 1116(a)(1)

Effective date: August 1, 1965

Description: Exempt from tax is the State of New York, or any of its agencies, instrumentalities, public corporations, 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.

129. Industrial development agencies

Citation: Tax Law § 1116(a)(1) and General Municipal Law Article 18-A

Effective date: May 26, 1969

Description: An Industrial Development Agency or Authority (IDA) qualifies as an exempt government organization under § 1116(a)(1) and receives all the benefits of that status. In addition, General Municipal Law Article 18-A grants tax exempt status to purchases made by an IDA project beneficiary (as agent of the IDA) and for sales by an IDA even where it is a vendor of services or property of a kind ordinarily sold by private persons.

130. Federal agencies

Citation: Tax Law § 1116(a)(2) and 12 U.S. Code § 1768

Effective date: August 1, 1965

Description: Exempt from tax is the United States of America, and any of its agencies and instrumentalities where it is the purchaser, user, or consumer, or where it sells services or property of a kind not ordinarily sold by private persons.

131. United Nations

Citation: Tax Law § 1116(a)(3)

Effective date: August 1, 1965

Description: Exempt from tax is the United Nations, or any international organization of which the United States 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.

132. Diplomats and foreign missions

Citation: Federal treaties with diplomat’s country

Effective date: Effective dates vary by federal treaties

Description: Diplomats of foreign countries and foreign missions are exempt from all national, state, and local taxes if the treaty with the foreign nation provides a reciprocal exemption for U.S. diplomats abroad.

133. Charitable organizations

Citation: Tax Law § 1116(a)(4)

Effective date: August 1, 1965

Description: Exempt from tax are purchases by nonprofit organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, fostering national or international amateur sports competition, or for the prevention of cruelty to children or animals.

134. Veterans’ posts or organizations

Citation: Tax Law § 1116(a)(5), (g)

Effective date: September 1, 1974 [§ 1116(a)(5)]; December 1, 1993 [§ 1116(g)]

Description: Exempt from tax are purchases by certain posts or organizations of past or present members of the Armed Forces of the United States. Hotel occupancy purchased by individual members acting as duly authorized representatives of the post or organization are also exempt.

135. Veterans’ homes gift shops

Citation: Tax Law § 1115(ff)

Effective date: December 1, 2006

Description: Sales of tangible personal property by any gift shop located in a veterans’ home are exempt.

136. Indian Nations and members of such Indian Nations

Citation: Tax Law § 1116(a)(6); federal restrictions

Effective date: September 1, 1976

Description: The following Indian Nations residing in New York are exempt where they are the purchaser, user, or consumer: Cayuga, Oneida, Onondaga, Poospatuck, Saint Regis Mohawk, Seneca, Shinnecock, Tonawanda, and Tuscarora. In addition, members of these Nations are excluded from tax for purchases made by them on the reservation in New York State.

137. U.S. Military base post exchanges

Citation: 4 U.S. Code, §§ 104-110

Effective date: August 1, 1965

Description: Sales, except sales of motor fuel, made on a military base at a post exchange or commissary are exempt.

138. Nonprofit health maintenance organizations

Citation: Tax Law § 1116(a)(7)

Effective date: April 1, 1980

Description: Purchases by a nonprofit health maintenance organization subject to the provisions of Public Health Law Article 44 are tax exempt.

139. Nonprofit medical expense indemnity or hospital service corporations

Citation: Insurance Law Article 43 § 4310(j)

Effective date: June 15, 1939

Description: The Insurance Law provides for an exemption from all State and local taxes (including State and local sales taxes) for certain entities. These entities include nonprofit corporations organized for the purpose of family medical expense indemnity, dental expense indemnity, hospital services, or health services.

140. Nonprofit property/casualty insurance companies

Citation: Insurance Law Article 67 § 6707

Effective date: December 20, 2000

Description: The Insurance Law provides for an exemption from sales tax for a nonprofit property/casualty insurance company subject to the provisions of Article 67 with respect to any property owned by it or under its jurisdiction, control, or supervision.

141. Certain state credit unions

Citation: Tax Law § 1116(a)(9)

Effective date: March 1, 2006

Description: New York State chartered credit unions are exempt from tax if they had converted to a state charter from a federal charter on or after January 1, 2006.

142. Rural electric cooperatives

Citation: Tax Law § 1116(a)(8)

Effective date: September 1, 1983

Description: Exempt from tax on their purchases are cooperatives and foreign corporations doing business in this state pursuant to the rural electric cooperative law.

143. Municipal trash removal services

Citation: Tax Law § 1116(e)

Effective date: June 30, 1980

Description: Receipts from the service of trash removal are exempt from tax where such service is rendered by or on behalf of a municipal corporation of the State other than New York City.

Admission charges

144. Certain admission charges

Citation: Tax Law § 1105(f)(1)

Effective date: August 1, 1965; December 1, 1997, for circus admissions

Description: Exempt from tax are admission charges of ten cents or less, plus admission charges to: race tracks; boxing or wrestling matches; live circus performances, dramatic, or musical arts performances; motion picture theaters; and sporting facilities where the patron is to be a participant, such as bowling alleys, health and fitness centers, and swimming pools.

145. Amusement park admissions

Citation: Tax Law § 1122

Effective date: July 27, 2004

Description: An exemption from Sales and Use Tax applies to 75 percent of the admission charge to certain amusement parks when the charge includes a fee for the use of amusement rides within the park.

146. Events given for the benefit of charitable organizations, veterans posts, and Indian Nations

Citation: Tax Law § 1116(d)(1)(A)

Effective date: August 1, 1965

Description: In general, admissions are exempt if all of the proceeds go exclusively to the benefit of a tax-exempt charitable organization, Indian Nations, or organization of past or present members of the Armed Forces.

147. Events given for the benefit of certain orchestras and opera companies

Citation: Tax Law § 1116(d)(1)(B)

Effective date: August 1, 1965

Description: Admissions are exempt if all of the proceeds go exclusively to the benefit of a society or organization conducted for the sole purpose of maintaining symphony orchestras or operas and receiving substantial support from voluntary contributions.

148. National guard organization events

Citation: Tax Law § 1116(d)(1)(c)

Effective date: August 1, 1965

Description: Admissions are exempt if all of the proceeds go exclusively to the benefit of a National Guard organization.

149. Municipal police and fire department events

Citation: Tax Law § 1116(d)(1)(D)

Effective date: August 1, 1965

Description: Admissions are exempt if all of the proceeds go exclusively to the benefit of a police or fire department of a political subdivision of the State, including its pension or disability funds, or to volunteer fire and ambulance companies.

150. Certain athletic games

Citation: Tax Law § 1116(d)(2)(A)

Effective date: August 1, 1965

Description: Admissions to any athletic game or exhibition are exempt where the proceeds go exclusively to the benefit of elementary or secondary schools.

151. Carnivals or rodeos for certain charitable organizations

Citation: Tax Law § 1116(d)(2)(B)

Effective date: July 30, 1983

Description: Admissions to carnivals or rodeos in which any professional performer or operator participates for compensation are exempt when the entire net profit inures exclusively to the benefit of a tax-exempt charitable organization having as its charitable purpose the operation of a school.

152. Agricultural fairs

Citation: Tax Law § 1116(d)(3)(A)

Effective date: August 1, 1965

Description: Admissions to agricultural fairs are exempt if no part of net earnings inures to the benefit of any stockholders or members of the association conducting the fair, and if the proceeds from the fair are used exclusively for the improvement, maintenance, and operation of such agricultural fairs.

153. Historical homes, gardens, sites, and museums

Citation: Tax Law § 1116(d)(3)(B), (c)

Effective date: August 1, 1965

Description: Admissions to an historical home or garden, historic sites, houses and shrines, or museums which are maintained and operated by a society or organization devoted to the preservation and maintenance of such historic places are exempt, provided that no part of net earnings goes to the benefit of any private stockholder or individual.

154. Performances at a roof garden or cabaret

Citation: Tax Law § 1123

Effective date: December 1, 2006

Description: The admission charge to a roof garden, cabaret, or similar place to attend a dramatic or musical arts performance is exempt from tax when separate from other charges such as charges for food or drink.
Credits

Credits

155. Sales tax vendor credit

Citation: Tax Law § 1137(f)

Effective date: September 1, 1994; September 1, 2006, for current rates; September 1, 2010, for limitation of the credit to quarterly and annual filers.

Description: A vendor allowance is provided to vendors that timely file and fully pay quarterly or annual returns. The credit is equal to five percent of State and local taxes remitted up to $200 per return.

156. Tangible property sold by contractors in certain situations

Citation: Tax Law § 1119(a)

Effective date: August 1, 1965

Description: A credit for taxes paid is allowed on the sale to or use by a contractor or subcontractor of tangible personal property if that property is used solely in the performance of a preexisting lump sum or unit price construction contract. The credit would only be applicable following a sales and use tax rate change.

157. Construction materials used in Empire Zones

Citation: Tax Law § 1119(a)

Effective date: September 1, 1986

Description: A credit for taxes paid is allowed on the sale of tangible personal property purchased for use in constructing, expanding, or rehabilitating industrial or commercial real property located in an Empire Zone, but only to the extent that such property becomes an integral component part of the real property.

158. Bus companies providing local transit service

Citation: Tax Law § 1119(b)

Effective date: March 1, 1974

Description: A credit for taxes paid is allowed on the sale to, or use by, an omnibus carrier in New York of any omnibus, parts, equipment, lubricants, motor fuel, diesel fuel, maintenance or service, or repair purchased and used in the operation of any such omnibus by such carrier. The amount of credit is based on the ratio of the vehicle mileage in local transit service in New York to the total vehicle mileage in the State.

159. Vessel operators providing local transit service

Citation: Tax Law § 1119(b)

Effective date: December 1, 2004

Description: A credit or refund for taxes paid is allowed on the sale to, or use by a vessel operator of any vessel, parts, equipment, lubricants, diesel motor fuel, maintenance, servicing, or repairs purchased and used in the operation of certain vessels providing local transit service (for example, water taxis). The credit or refund is provided according to the percentage of the vessel’s use in local transit service.

160. Commercial motor vehicle leases with terminal rental adjustment clauses

Citation: Tax Law § 1111(i)(B)

Effective date: June 1, 2022

Description: A credit or refund is allowed to a lessee or lessor under certain conditions for sales taxes paid on commercial motor vehicle leases with terminal rental adjustment clauses (TRAC leases).

161. Qualified Empire Zone Enterprises

Citation: Tax Law § 1119(d)

Effective date: September 1, 2009

Description: A credit or refund is available for tax paid on tangible personal property and certain services purchased by a Qualified Empire Zone Enterprise and used directly and predominantly in an Empire Zone in which the Qualified Empire Zone Enterprise has qualified for benefits. A refund or credit is also allowed for tax paid on tangible personal property sold to a contractor, subcontractor or repairman in certain situations.  

162. Economic transformation and facility redevelopment program

Citation: Tax Law § 1119(f)

Effective date: March 31, 2011

Description: A refund is available to a participant in this program (or its contractor) for State tax paid on tangible personal property used in the construction, expansion, or rehabilitation of industrial or commercial real property located in an economic transformation area, but only to the extent that such property becomes an integral component part of the real property.

163. New York State Business Incubator and Innovation Hot Spot Program

Citation: Tax Law § 1119(d)

Effective date: March 28, 2013

Description: A credit or refund for taxes paid is allowed on tangible personal property and certain services purchased by a qualified entity that is a tenant in or part of a New York State innovation hot spot.

164. START-UP New York tax elimination credit

Citation: Tax Law § 1119(d)

Effective date: March 1, 2014

Description: A credit or refund is available for tax paid on tangible personal property and certain services purchased by an approved business that is located in a tax-free NY area. In addition, a credit or refund is available for certain purchases of tangible personal property by contractors, subcontractors, and repairmen that is used in constructing, improving, maintaining, servicing, or repairing real property of such an approved business.