New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 525 - General
Section 525.2 - Nature of tax
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 525.2
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Sales tax.
(1)
(i)
Except as specifically exempted or excluded, sales tax is imposed on the
receipts from:
(a) every retail sale of
tangible personal property, as provided in section
1105(a) of the Tax
Law;
(b) every sale, other than a
sale for resale, of specifically enumerated services, as provided in sections
1105(b) and (c); and
(c) every sale
of food and drink when sold in or by a restaurant, tavern or other
establishment or by a caterer, as provided in section 1105(d).
(ii) Sales tax is also imposed on
rent for every occupancy of a hotel room and on admission charges, dues and
other amusement charges, as provided in sections
1105(e) and
(f) of the Tax Law, respectively.
(iii) Each of the various types of
transactions has statutory exemptions, exceptions, exclusions and limitations.
See, for example, sections
1111,
1115 and
1116 of the Tax Law.
(2) Except as specifically provided
otherwise, the sales tax is a "transactions tax," with the liability for the
tax occurring at the time of the transaction. Generally, a taxed transaction is
an act resulting in the receipt of consideration for the transfer of title to
or possession of (or both) tangible personal property or for the rendition of
an enumerated service. The time or method of payment is generally immaterial,
since the tax becomes due at the time of transfer of title to or possession of
(or both) the property or the rendition of such service (but see section
1132[a][2] regarding materialmen).
(3) Except as specifically provided
otherwise, the sales tax is a "destination tax." The point of delivery or point
at which possession is transferred by the vendor to the purchaser, or the
purchaser's designee, controls both the tax incidence and the tax
rate.
(4) The sales tax is
generally a "consumer tax." That is, the person required to collect tax must
collect the tax from the customer (i.e., the consumer) when collecting the
taxable receipt, rent or amusement charge to which the tax applies. The
customer cannot shift the liability for payment of the tax to another person
nor otherwise be relieved of such liability. The vendor, or other person
required to collect the tax, collects the tax as trustee for and on account of
the State and is also personally liable for the tax required to be
collected.
(b) Compensating use tax.
(1) The compensating
use tax is imposed on the use within the State of certain tangible personal
property and certain enumerated services:
(i)
purchased by a New York resident (as defined in section
526.15 of
this Title) outside of the State, which would have been subject to sales tax if
purchased in this State; or
(ii)
purchased in the State but, for various reasons, the sales tax was not paid at
the time of purchase.
(2) Compensating use tax is also imposed on
the use within this State of certain tangible personal property manufactured,
processed or assembled by the user, including, certain computer software
written or otherwise created by the user.
Cross-reference: see Part 531 of this Title.
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