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New York Budget Bill Sales Tax Changes 2012

  • Aug 7, 2012 | Will Frei

The New York Department of Taxation issued a bulletin outlining the sales and use tax changes enacted by the 2012-2013 New York State budget.

Changes include electronic filing and payment mandate changes, extension of alternative fuel tax exemptions, and amendments to sales tax requirements for room re-marketers.

Electronic Filing and Electronic Payment Mandate Changes

The 2012-2013 budget bill changed the electronic filing mandate for New York tax preparers, effective until January 1, 2014:

[a] tax preparer who prepares tax documents for more than ten different taxpayers during any calendar year, and in a succeeding year prepares one or more authorized returns using tax software, must file all authorized tax documents electronically in that succeeding tax year as well as each year thereafter.

Previously the "tax preparer e-file mandate" required tax preparers who prepared more than five authorized tax documents in a prior year to electronically " . . . file all authorized tax documents in succeeding years." Those who met the requirements for the earlier mandate must continue to file electronically if they prepare " . . . one or more returns using tax software."

In addition, effective March 20, 2012, the definition of "authorized tax document" changed to ". . . exclude any return or report that includes one or more tax documents that cannot be filed electronically."

More information on New York sales tax filing and returns.

Fuel Sales Tax Changes

The 2012-2013 budget bill extends the alternative fuel tax exemptions until September 1, 2014. This includes a partial sales and use tax exemption (see New York code Article 28 and Article 29).

In addition, the bill changes the classification of certain types of diesel motor fuel:

  • It removes crude oil from the definition of diesel motor fuel, exempting it from sales and use tax.
  • It allows diesel fuel distributors to ". . . sell undyed qualified biodiesel to another distributor of diesel motor fuel without excise tax, petroleum business tax, and prepaid sales tax."
  • It removes the restriction ". . . that non-highway diesel motor fuel cannot be sold without prepaid sales tax if the fuel was previously subject to tax."

These amendments took effect June 1, 2012. See Technical Amendments Related to Diesel Motor Fuel for more information.

Amendments to Facilitate Compliance by Room Remarketers

New York requires room remarketers to collect sales and use tax. The New York Department of Taxation and Finance defines room remarketers as

. . . a person who reserves, arranges for, conveys, or furnishes occupancy, whether directly or indirectly, to an occupant for rent in an amount determined by the room remarketer, directly or indirectly, whether pursuant to a written or other agreement.

Effective September 1, 2012, the budget bill enacts amendments to help room remarketers with sales and use tax compliance. For instance, room remarketers can " . . . use a revised method of computing sales tax on rent for hotel occupancy when they sell hotel occupancy together with other property and services (bundled sales)."

Additionally, room remarketers will report and remit sales tax in the period ". . . in which the occupancy ends . . . ."

For a complete list of ammendments see 2012 Budget Legislation Affecting the Sales Tax Obligations of Hotel Room Remarketers.

See the Summary of Budget Bill Sales and Use Tax Changes Enacted in 2012 for a full list of changes.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.