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 544 - Mobile Homes And Factory Manufactured Homes
Section 544.4 - Charges for installing, repairing, servicing and maintaining mobile homes and factory manufactured homes
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 544.4
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, § 1105(c)(3)
(a) Mobile homes.
(1) The charge for installing a mobile home
on real property is excluded from the sales and use taxes. However, tangible
personal property purchased and used for the installation of a mobile home is
subject to the sales and use tax. Such tangible personal property includes but
is not limited to: concrete blocks, water and sewer pipes, steps, wind anchors,
electric cables, oil tanks and stands.
(i)
Where a contractor, subcontractor or repairman in installing a mobile home uses
items of tangible personal property belonging to the mobile homeowner, the
installation charge (labor) is not subject to the sales and use tax.
(ii) Where a contractor, subcontractor or
repairman installing a mobile home, uses items of tangible personal property
purchased by him for such installation, the charge to the owner of the mobile
home for the service of installing the mobile home (including materials used in
such installation and transferred to the owner in conjunction with the
performance of the service) is not subject to sales and use tax. The
contractor, subcontractor or repairman must pay tax on the materials at the
time of purchase.
(iii) Where a
dealer also acts as a contractor, subcontractor or repairman in the
installation of a mobile home, its charge to the purchaser of the mobile home
for such installation (including materials used in such installation and
transferred to the owner in conjunction with the performance of the service) is
not subject to sales and use tax. However, the dealer is liable for payment of
use tax on all materials it uses in such installation.
(2)
(i) The
charge to a purchaser for installing tangible personal property on a mobile
home or maintaining, servicing or repairing a mobile home (including labor and
materials), is subject to the sales and use tax.
(a) Where a contractor, subcontractor or
repairman installs items of tangible personal property belonging to the mobile
home owner, the installation charge (labor) is subject to the sales and use
tax.
(b) Where a contractor,
subcontractor or repairman installs items of tangible personal property
purchased by him for such installation, the charge to the owner of the mobile
home for both the labor and materials is subject to the sales and use tax. The
contractor, subcontractor or repairman must pay tax on the materials at the
time of purchase. Upon the installation of such materials, the contractor,
subcontractor or repairman may apply for a refund or claim a credit on the
contractor's, subcontractor's or repairman's next sales tax return for such tax
paid in respect of any property so transferred to the owner of the mobile home.
Alternatively, a contractor, subcontractor or repairman registered as a vendor
who is under contract to maintain, service or otherwise repair a mobile home
may purchase materials specifically for use in performing such contract without
payment of tax by issuing a properly completed contractor exempt purchase
certificate. Contractors, subcontractors or repairmen performing taxable
services are vendors required to register pursuant to section
1134 of
the Tax Law.
(c) Where a dealer
also acts as a contractor, subcontractor or repairman in the installation of
tangible personal property for a mobile homeowner, its total charge for such
services (labor and materials) is subject to sales and use tax. However, the
dealer may purchase tangible personal property used in such installations
without payment of tax by issuing a properly completed resale certificate.
Alternatively, a dealer who so acts may pay tax on such tangible personal
property at the time of purchase and, upon the installation of such property,
the dealer may apply for a refund or claim a credit on the dealer's next sales
tax return for such tax paid in respect of any property so transferred to the
owner of the mobile home.
(3) Regardless of the nature of its
installation on real property, a mobile home does not constitute an addition or
capital improvement to real property, property or land for purposes of the
sales and use tax imposed by article 28 and pursuant to the authority of
article 29 of the Tax Law. Thus, excluding the service of installing a mobile
home onto real property, the receipts including all charges for both labor and
materials from the service of installing tangible personal property in or onto
a mobile home and the services of maintaining, servicing or repairing a mobile
home are subject to the sales and use tax.
Example:
Installing a new roof on a mobile home; repairing or replacing a furnace in a mobile home; repairing broken windows and faulty faucets in a mobile home; and painting interior or exterior walls of a mobile home are examples of taxable services. The total charge (labor and materials) for such services is subject to tax.
Cross-reference:
For maintaining, installing, repairing and servicing tangible personal property, see sections 527.5 and 541.5 of this Title. For refunds and credits, see section 534.5 of this Title. For contractors' regulations, see Part 541 of this Title.
(b) Factory manufactured homes.
(1)
If the installation of a factory manufactured home results in a capital
improvement, charges for the installation of such factory manufactured home are
not subject to the sales tax, and the installer is liable for the sales and use
tax on any materials used or consumed in such installation.
(2) If a factory manufactured home is
installed upon real property under such circumstances that the installation
does not constitute a capital improvement, the charges for such installation
including labor and materials (including the charge for the factory
manufactured home if applicable) is subject to tax. In such event, a contractor
may claim a refund or credit of the sales and compensating use tax it paid upon
its purchase of those materials which were subsequently resold.
Cross-references:
For definition of capital improvement, see section 527.7(a)(3) and section 541.2(g)(1) of this Title.
For special rules concerning the compensation use tax due on factory-manufactured homes installed by the manufacturer, see section 541.11(c)(2) and (3) of this Title.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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