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How the New New York Budget Affects Sales Tax

  • Apr 17, 2015 | Gail Cole

 New York: New exemptions coming for liquor tasting.

The newly approved New York State FY 2015-16 Budget includes several amendments to existing New York sales tax law.

Included in the final budget

  • Create sales tax exemptions for the purchase or lease of vessels costing more than $230,000 (think yachts), and for the purchase or lease of private aircraft. Effective June 1, 2015.
  • Expand the existing sales tax exemptions for solar energy system equipment to include electricity generated by such equipment that is sold under a power purchase agreement. Effective December 1, 2015.
  • Extend the wine tasting sales and use tax exemption to other alcoholic beverages (beer, cider, liquor). Effective June 1, 2015.
  • Amend the imposition of the sales and compensating use tax on prepaid mobile calling services.

Not included in the final budget

These proposed changes didn't make the cut.

  • Expand sales tax collections for online sellers: The proposed budget sought to require marketplace providers such as Amazon and eBay to collect New York sales tax whenever they facilitate a sale to a New York consumer, even if the seller is located out-of-state. Currently “such outside sellers are required to collect sales tax from New York residents if the seller is in New York.” This was expected to add $60 million to annual sales tax revenue.
  • Reform the Industrial Development Authority (IDA) program so that approval of future IDA projects that contain State sales tax benefits is based on job and/or investment targets. If targets are not met, participating businesses will be subject to a clawback of State sales tax benefits.

This list is by no means a comprehensive. The courageous – and patient – are invited to read Assembly Bill 3009.

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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.
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.