New York Revises Tax on Storage and Transit Services
- Nov 20, 2014 | Gail Cole
Currently, New York sales tax applies to the incidental storage in transit of tangible personal property when the storage-in-transit period exceeds 30 days. Storage in transit occurs when goods are stored in the State of New York due to a delay during transportation (such as a freak snow storm dumping four feet of snow on the road) and the mover is responsible for the stored property.
Effective January 1, 2015, however, storage in transit will be considered “incidental to the provision of an exempt transportation service” and will therefore not be subject to sales tax when all of the following conditions are met:
- The mover provides the customer with a bill of lading specifying a destination that is both different from the address where the mover picks up the property for movement and different from the location where the mover would provide storage.
- The mover is responsible for any loss or damage to the property during the storage-in-transit period.
- The mover remains responsible (for loss or damage) during the storage-in-transit period, “to complete the moving process.”
- Previously stated charges for storage in transit do not exceed the transportation charges.
Additional information may be factored into any decision (regarding sales tax and storage in transit) made by the New York Department of Taxation and Finance.
The application of sales tax to general storage is not impacted by the revision of the storage in transit services.
Additional information, including examples, is available on TSB-M-14(16)S.
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