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Hurricane Sandy: New York City Offers Tax Relief


 NYC Offers Tax Relief for Businesses Damaged by Sandy

UPDATE (2/1/2013): The deadline to apply for the Hurricane Emergency Sales Tax Exemption Program has been extended. Applications for sales tax benefits must now be received by April 1, 2013.

New York City businesses that have sustained physical damage due to Hurricane Sandy can now apply for a sales tax exemption of up to $100,000 on materials needed for repair. The Hurricane Emergency Sales Tax Exemption Program (HESTEP) is limited to 250 businesses; the deadline for application is February 1, 2013. 

Eligibility

UPDATE (12/11/2012): New York businesses that sustained damage during Hurricane Sandy and are applying for sales tax benefits through HESTEP should wait until they “obtain the HESTEP sales tax letter prior to making any eligible capital expenditures.”

Businesses must meet the following criteria in order to apply for the HESTEP:

  • All businesses with storm-related physical damages are eligible. Priority will be given to industrial businesses located within Flood Zone A and the area of New York City impacted by an extensive power outage as a direct result of Hurricane Sandy. 
  • Scope of renovations may include repairs, in-kind replacements and reconstruction of facilities damages by the hurricane

(Via the The New York City Economic Development Corporation website.)

Companies in the program must begin reconstruction within six months of application and must use the sales tax exemption within one year of the time they start to rebuild.

Application 

To apply, complete the following forms and send them to HESTEP@nycedc.com:

photo credit: NASA Goddard Photo and Video via photopin cc

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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.