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New York Increases Exemption Threshold for Vending Machine Sales


 New York: gourmet vending machines.

 

New York State has increased the sales tax exemption for certain vending machine sales. Beginning June 1, 2014, the threshold for exempt vending machine sales increased from $0.75 to $1.50 per item.

The New York sales tax exemption applies to vending machine sales of:

  • Candy
  • Fruit drinks containing less than 70% natural fruit juice
  • Soda

These items are subject to sales tax when sold elsewhere, such as in grocery or convenience stores. Only candy, fruit drinks and soda sold through vending machines are exempt.

Hot beverages sold through vending machines remain exempt from tax, no matter the sales price. New York State Department of Taxation and Finance website.

New York isn’t the only state to ponder the tax status of vending machine sales. California updated information on this topic last fall. And Alabama sales tax rate change notices often include information on the rate for food sold through vending machines.

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photo credit: Carsten Knoch via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.