The Sales and Use Tax of Scaffolding in New York

The complexity and subtlety of sales and use tax application can boggle the mind.

For example, New York recently considered the sales and use tax of installing and dismantling scaffolding. Details may be found in New York State Department of Taxation and Finance Advisory Opinion Petition No. S110624A .

Is scaffolding a "temporary facility" or is it "construction equipment"? Such a distinction makes all the difference when it comes to sales and use tax.

Scaffolding as Temporary Facility

If scaffolding is a temporary facility, its installation services are exempt from NY sales tax. However, "the sale or lease of material that is used to construct a temporary facility is subject to sales and use tax."

Scaffolding as Construction Equipment

If scaffolding is considered to be construction equipment, it does not qualify for the exemption. The "installation of such equipment would be subject to sales tax…." However, the "service of dismantling scaffolding… is not subject to sales tax."

That's a lot of minutia to monitor.