Quick Reference Guide for Taxable and Exempt Property and Services

Tax Bulletin ST-740 (TB-ST-740)

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Issue Date: Updated February 1, 2019


Introduction

Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt.

Sales of services are generally exempt from New York sales tax unless they are specifically taxable.

This bulletin describes:

  • taxable property and services,
  • exempt property and services, and
  • exemption documents.

Tangible personal property and services

Whether sales of a particular good or service are taxable may depend on many factors. You should consult our publications and tax bulletins for more detailed explanations of what property and services are subject to sales tax. See the listing below for examples of taxable tangible personal property and services.

The term tangible personal property means any kind of physical personal property that has a material existence and is perceptible to the human senses (in other words, something you can see and touch).

Examples of taxable tangible personal property, services, and transactions that are subject to sales tax are:

  • tangible personal property:
    • furniture, appliances, and light fixtures;
    • certain clothing and footwear;
    • machinery and equipment, parts, tools, and supplies;
    • computers;
    • prewritten (canned/off-the-shelf/standard) computer software (whether transferred by CD-ROM, Internet download, remote access, etc.);
    • motor vehicles;
    • boats and yachts (however, see also TSB-M-15(2)SChanges to the Application of Sales and Use Tax to Vessels);
    • fuels (for example, gasoline, diesel fuel, and kero-jet fuel);
    • candy and confections;
    • bottled water;
    • soda and beer;
    • cigarettes and tobacco products;
    • cosmetics and toiletries;
    • jewelry;
    • artistic items such as sketches, paintings, and photographs;
    • animals (for example, dogs, cats, or pet birds);
    • food and supplies for animals;
    • trees, shrubs, and seeds;
    • coins and other monetary items, when purchased for purposes other than for use as a medium of exchange;
    • building materials; and
    • prepaid telephone calling cards.
  • restaurant food and drink;
  • utility and (intrastate) telecommunication services;
  • telephone answering services;
  • prepaid telephone calling services;
  • mobile telecommunication services;
  • certain information services;
  • processing, fabricating, printing, or imprinting of tangible personal property for a customer who furnishes the tangible personal property and doesn’t plan to resell it;
  • maintaining, installing, servicing, and repairing of tangible personal property;
  • storing tangible personal property (does not include certain rentals of mini-storage units that constitute the rental of real property – see Tax Bulletin Household Movers and Warehousers – General (permanent) storage and portable storage containers (TB-ST-340) and TSB-M-86(3)STaxable Status of the Rental of Self-Service Mini-Storage Units);
  • maintaining, servicing, and repairing real property;
  • certain parking and garaging or storing of motor vehicles;
  • interior decorating and design services;
  • protective and detective services;
  • passenger transportation services with a driver using limousines, black cars, and certain other motor vehicles (not including taxi and bus services – see TSB-M-09(7)SAdditional Guidance Relating to the Sales Tax on Certain Transportation Services), and TSB-M-13(2)SRevised Policy Concerning the Application of the Sales Tax Exclusion for Certain Transportation Services Provided by an Affiliated Livery Vehicle in New York City;
  • furnishing or providing entertainment or information by telephony or telegraphy or by telephone or telegraph service, provided, for example, over phone numbers with an 800 or 900 prefix;
  • hotel occupancy;
  • admission charges to a place of amusement;
  • social and athletic club dues; and
  • certain portions of cabaret charges.

Services subject only to New York City sales tax are:

  • beautician services, barbering, and hair restoring;
  • tanning;
  • manicure and pedicure;
  • electrolysis;
  • massage services;
  • services provided by weight control and health salons, gymnasiums, Turkish and sauna baths, and similar facilities, including any charge for the use of these facilities;
  • written or oral credit rating services (see TSB-M-15(4)SNew York City Local Sales Tax on Credit Rating Services); and
  • oral credit reporting services not delivered by telephone.

Tax exempt property and services

The chart below lists property and services that are generally exempt from sales tax. It also lists:

  • Tax Law sections that provide the exemption;
  • department publications, bulletins, and technical memoranda (TSB-Ms) that are relevant to the exemption; and
  • exemption documents, if any, that the customer must give to the seller for the sale to be treated as exempt from tax.
General sales tax exemption certificates
Specific exemption Tax Law section(s) Publications, Bulletins, or TSB-Ms Exemption document required
[1] Purchases by vendors of certain property or services that are intended for resale 1101(b)(4)
1105(b), and
1105(c)
 TB-ST-240 ST-120
Building or installing a capital improvement 1105(c)(3)(iii) and
1105(c)(5)
Pub 862
TB-ST-104
TB-ST-505
ST-124
Receipts paid to a homeowners’ association by its members for parking services 1105(c)(6) and
1212-A(a)(1)
TSB-M-97(12)S
TSB-M-01(3)S
none
Laundering, dry cleaning (including carpet, rug, drapery, and upholstery cleaning services), tailoring, weaving, pressing, shoe repairing, and shoe shining 1105(c)(3)(ii) Pub 750
TSB-M-02(4)S
none
Admission charges to certain places of amusement 1105(f)(1) TB-ST-8
TB-ST-30
none
Certain residential energy sources and services [2] 1105-A Pub 718-R
TB-ST-775
TP-385
Certain food and drinks 1115(a)(1) TB-ST-65
TB-ST-103
TB-ST-135
TB-ST-160
TB-ST-280
TB-ST-283
TB-ST-525
TB-ST-835
none
Water delivered through mains or pipes 1115(a)(2)   none
Drugs, medicines, medical equipment and related services, and certain medical supplies [3] 1115(a)(3) and
1115(g)
Pub 822
Pub 840
TB-ST-193
TSB-M-14(8)S
none
Feminine hygiene products 1115(a)(3-a) TSB-M-16(6)S none
Prosthetic aids and devices and related services 1115(a)(4) and
1115(g)
Pub 822
Pub 840
TSB-M-06(5)S
TSB-M-14(8)S
none
Newspapers and qualified periodicals 1115(a)(5) TB-ST-620
TSB-M-12(1)S
none
Property or services used in farming or commercial horse boarding, including fuel and utilities 1115(a)(6) and
1115(c)(2)
TB-ST-244
TB-ST-253
TSB-M-00(8)S
ST-125
Sales by funeral homes 1115(a)(7)   none
Commercial vessels 1115(a)(8) TSB-M-96(14)S ST-121
Commercial aircraft, certain related property, and fuel 1115(a)(9) and
1115(a)(21)
TSB-M-96(14)S
TSB-M-09(4)S
ST-121
General aviation aircraft, and property and services related to their maintenance 1115(a)(21-a)
1115(dd)
TSB-M-04(8)S
TSB-M-09(18)S
TSB-M-15(3)S
ST-121
Property and utilities used in research and development 1115(a)(10) and
1115(b)(ii)
Pub 852
TB-ST-773
ST-121
U.S. and N.Y. official flags 1115(a)(11) TSB-M-01(5)S none
Certain military decorations 1115(a)(11-a) TSB-M-06(15)S ST-121
Military service flags, prisoner of war flags, and blue star banners 1115(a)(11-b) TSB-M-12(13)S none

Manufacturing:

  • machinery or equipment
  • utilities
  • fuel
1115(a)(12) and
1115(c)(1)
Pub 852
TB-ST-15
TB-ST-276
TB-ST-552
TB-ST-587
TB-ST-690
TB-ST-917
TSB-M-82(8)S
TSB-M-82(18)S
TSB-M-82(25)S
ST-121
FT-1012
FT-1020
Certain property used in connection with telecommunications and Internet access 1115(a)(12-a) TSB-M-00(6)S ST-121
Certain items sold through coin-operated vending machines 1105(d)(i)(3) and
1115(a)(13),(13-a)
TSB-M-83(33)S
TSB-M-97(12)S
TSB-M-99(4)S
none
Coin-operated luggage carts 1115(a)(13-b) TSB-M-97(12)S none
Certain intra-family sales of motor vehicles 1115(a)(14)   DTF-802
Materials sold to contractors to be installed in real property owned by exempt entities 1115(a)(15) and (16) Pub 843 ST-120.1
Charges by contractors for materials incorporated into real property as part of a capital improvement 1101(b)(4)(i) and
1115(a)(17)
Pub 862
TB-ST-104
TB-ST-113
ST-124
Certain sales conducted from a residence (for example, garage sales) 1115(a)(18) TB-ST-807 none
Packaging materials related to property for sale 1115(a)(19) Pub 852
TB-ST-107
ST-121
Milk crates purchased by a dairy farmer or New York State licensed milk distributor 1115(a)(19-a) TSB-M-06(16)S ST-121
Shopping papers and related printing services 1115(a)(20) and
1115(i)
TB-ST-620 ST-121
Certain trucks, tractors, and tractor-trailers 1115(a)(22) TSB-M-81(25)S  
Used mobile homes 1115(a)(23) TSB-M-83(24)S
TSB-M-83(24.1)S
none
Certain fishing vessels 1115(a)(24) TSB-M-85(17)S ST-121
Natural gas used for consumption by owners of a gas well on their property 1115(a)(25) TSB-M-85(15)S none
Tractors, trailers, and semi-trailers, and related services 1115(a)(26)S
1115(g)
TB-ST-890 ST-121.1
Precious metal bullion sold for investment 1115(a)(27) TSB-M-89(20)S
TSB-M-89(20.1)S
TSB-M-95(9)S
none
Customized computer software transferred to a related entity 1115(a)(28) TB-ST-128
TSB-M-93(3)S
none
Certain race horses and related training and maintenance services 1115(a)(29) and
1115(m)
TB-ST-755
TB-ST-757
TSB-M-95(6)S
ST-126
Clothing and footwear and items used to repair exempt clothing if sold for less than $110 [4] 1115(a)(30) Pub 718-C
TB-ST-122
TB-ST-530
TSB-M-06(6)S
none
Copies sold through coin-operated photocopying machines at 50 cents or less 1115(a)(31) TSB-M-97(12)S none
Enhanced emissions inspection equipment 1115(a)(31) TSB-M-97(8)S ST-121
Certain public transportation vehicles (omnibuses) and related services 1115(a)(32) and
1115(u)
TSB-M-97(12)S ST-121.1
Alcoholic beverage tastings 1115(a)(33) TB-ST-15
TSB-M-97(12)S
TSB-M-14(9)S
TSB-M-15(1)S
TSB-M-16(7)S
none
College textbooks sold to full-time or part-time college students for their courses 1115(a)(34) TB-ST-125
TB-ST-126
TSB-M-98(4)S
ST-121.4
Computer system hardware used to develop software and Web sites 1115(a)(35) TB-ST-243
TSB-M-98(5)S
ST-121.3
Certain tools and supplies related to gas or oil production 1115(a)(36) Pub 852
TB-ST-552
TSB-M-98(13)S
ST-121
Certain Internet data center equipment and related services 1115(a)(37) and
1115(y)
TB-ST-405
TB-ST-665
TSB-M-00(7)S
ST-121.5
Certain broadcasting and film production equipment and related services 1115(a)(38),(39) and 1115(aa),(bb) Pub 28
Pub 825
TB-ST-276
TSB-M-00(6)S
ST-121
Pollution abatement equipment 1115(a)(40) TSB-M-00(6)S ST-121
Certain marine cargo facility machinery and equipment 1115(a)(41) TSB-M-05(14)S ST-121
E85, CNG, or hydrogen for use in a motor vehicle 1115(a)(42) TSB-M-14(12)S
TSB-M-13(3)S
TSB-M-16(4)S
none
Certain ferry boats and property purchased or used to operate them 1115(a)(43) TSB-M-08(11)S ST-121
Telephone and telegraph services used in news gathering 1115(b)(i) Pub 825
TSB-M-12(1)S
none
Utilities and utility services produced by cogeneration facilities operated by cooperative corporations 1115(b)(iii) TSB-M-06(3)S none
Certain services on property delivered outside NYS 1115(d)   none
Coin-operated telephone calls for 25 cents or less 1115(e) TSB-M-98(9)S none
Veterinary services 1115(f) Pub 851
TB-ST-930
none
Drugs or medicine for use on livestock or poultry used in farm production 1115(f) TSB-M-18(1)S
TB-ST-244
TB-ST-253
ST-125
Sales by railroads in reorganization 1115(h)   none
Certain food purchased with food stamps 1115(k) TB-ST-140 none
Certain property donated to exempt organizations by the manufacturer of the property 1115(l) TSB-M-87(14)S none
Qualifying promotional materials and related services 1115(n) Pub 831
TB-ST-692
TSB-M-97(6)S
TSB-M-01(4)S
ST-121.2
Services performed on computer software 1115(o) TB-ST-128
TSB-M-93(3)S
none
Services performed to a qualifying barge 1115(q) N-94-3 ST-121
Medical emergency alarm call services 1115(r) TSB-M-94(3)S none
Property and services related to guide dogs 1115(s) TB-ST-245
TSB-M-95(10)S
ST-860
Certain coin-operated car wash services 1115(t) TB-ST-105 none
Internet access services 1115(v) TSB-M-97(1.1)S none
Certain food and drink sold by a senior citizen housing community to its residents and their guests 1115(w) TSB-M-01(4)S none
Property used in connection with certain theater productions 1115(x) TB-ST-535
TSB-M-99(4)S
ST-121.9
Residential solar energy systems equipment and electricity sold under a solar power purchase agreement [5] 1115(ee) Pub 718-S
TSB-M-05(11)S
TSB-M-15(5)S
ST-121
Property used to furnish leased premises in designated areas of lower Manhattan 1115(ee)(1)-(8) TSB-M-05(12)S
TSB-M-09(14)S
ST-121
Gift shop sales at a veterans home 1115(ff) TSB-M-06(15)S none
Certain electronic news services and periodicals 1115(gg) TSB-M-12(1)S none
Certain HAIL vehicle trips 1115(hh) TSB-M-12(7)S none
Commercial solar energy systems equipment and electricity sold under a solar power purchase agreement [5] 1115(ii) Pub 718-CS
TSB-M-12(14)S
TSB-M-15(5)S
ST-121
Changes to sales and use tax on vessels 1115(jj) TSB-M-15(2)S none
Sales for rent paid by a room remarketer to a hotel operator 1115(kk) TSB-M-16(2)S ST-120.2
Commercial fuel cell systems equipment 1115(kk) TSB-M-16(3)S ST-120.1
ST-121
Certain purchases by exempt organizations 1116 Pub 843 ST-119.1
Purchases by governmental entities 1116 Pub 843
TB-ST-315
TB-ST-700
ST-129
75% of the admission charge to a qualifying place of amusement 1122 TSB-M-04(7)S
TSB-M-06(12)S
none
Certain portion of the admission charge to attend a dramatic or musical performance at a roof garden, cabaret, or similar place 1123 TSB-M-06(15)S none

You should not collect sales tax on exempt sales that do not require an exemption document. However, for sales that require an exemption document, you must collect sales tax unless you receive a properly completed exemption document from the purchaser. You must receive the exemption document within 90 days of the date you delivered the property or rendered the service.

See Tax Bulletin Exemption Certificates for Sales Tax (TB-ST-240).


[1] Special rules apply to contractors who provide maintenance and other services to real property. For more information, see Publication 862Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property.

[2] Local tax rates may apply and vary depending on the locality, including certain school districts. See Pub 718-RLocal Sales and Use Tax Rates on Residential Energy Sources and Services.

[3] Medical equipment and supplies purchased by a person for use in performing medical services for compensation are subject to sales and use taxes.

[4] This exemption does not apply to locally imposed sales and use taxes, unless the county or city imposing those taxes elected the exemption. See Pub 718-CLocal Sales and Use Tax Rates on Clothing and Footwear.

[5] This exemption does not apply to locally imposed sales and use taxes, unless the county or city imposing those taxes elected the exemption. See Pub 718-SLocal Sales and Use Tax Rates on Sales and Installations of Residential Solar Energy Systems Equipment and Pub 718-CSLocal Sales and Use Tax Rates on Sales and Installations of Commercial Solar Energy Systems Equipment.

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.