N.Y. Comp. Codes R. & Regs. tit. 20 § 526.5
Tax Law, §§ 1101(b)(3), 1111(h)
The word receipt means the amount of the sale price of any property and the charge for any service taxable under articles 28 and 29 of the Tax Law, valued in money, whether received in money or otherwise. The following subdivisions of this section discuss elements of a receipt.
Example 1:
Sales tax computation when excise tax is a tax on the manufacturer:
| Price of merchandise | $1,040 | |
| Federal manufacturer's excise tax | + 60 | |
| Taxable receipt | 1,100 | |
| Sales tax at 7% | + 77 | |
| Total due | $1,177 |
With the exception of the taxes imposed on consumers of cigarettes (see subparagraph [1][ii] of this subdivision), and except as otherwise provided by law, excise taxes that are imposed on the consumer are excluded from the receipts on which sales tax is computed. Among these taxes, by way of example and not by way of limitation, are:
Example 2:
Sales tax computation when the excise tax is not included in the taxable receipt:
| Price of merchandise (including Federal retail excise tax at 12%) | $1,120 |
| Less: Federal retail excise tax at 12% | -120 |
| Taxable receipt | 1,000 |
| Sales tax at 7% | + 70 |
| Total before excise tax | 1,070 |
| Excise tax (add back) | +120 |
| Total due | 1,190 |
Example 1:
A manufacturer issues coupons entitling the holder to credit allowances of 12¢ on the purchase of its products from a retailer. The tax is computed as follows by the retailer:
| Regular price | 63¢ |
| Tax at 7% rate | 5¢ |
| 68¢ | |
| Credit for mfr. coupon | 12¢ |
| Amount due from purchaser | 56¢ |
Example 2:
A store issues a coupon, labeled "mfr" entitling the holder to a credit allowance of 12¢ on the purchase of its products from a retailer. The purchaser is billed as follows by the retailer:
| Regular price | 63¢ |
| Tax at 7% rate | 5¢ |
| 68¢ | |
| Credit for mfr. coupon | 12¢ |
| Amount due from purchaser | 56¢ |
Example 3:
A Store issues coupons entitling the holder to credit allowance of 12 cents on the purchase of its products from a retailer. The purchaser is billed as follows by the retailer:
| Regular price | 63¢ |
| Store coupon | 12¢ |
| 51¢ | |
| Tax at 7 percent rate | 4¢ |
| Amount due from purchaser | 55¢ |
Example 1:
A vendor grants a purchaser a 2 percent discount for paying the price of a $100 camera within 10 days, and expects payment of the full price if paid within 30 days. The sales tax, in a 7 percent area, is $7 on the taxable receipt of $100, whichever method of payment the customer chooses.
| DISCOUNT METHOD | FULL PRICE METHOD |
| $100 Price | $100 |
| 7 Tax | 7 |
| $107 | $107 |
| 2 Discount | |
| $105 Due |
Example 2:
A vendor grants a purchaser a 30 percent discount for purchasing 1,000 light bulbs. The taxable receipt will be the discount price. The billing in a 7 percent area, should be similar to:
| 1,000 Bulbs at 50¢ | $500.00 |
| Less 30% | 150.00 |
| $350.00 | |
| Tax at 7% | 24.50 |
| Due | $374.50 |
Example 3:
A vendor grants a purchaser a 10 percent cash and carry discount. The taxable receipt will be the discounted price. The billing in a 7 percent area should be similar to:
| Merchandise | $50.00 |
| Less 10% | 5.00 |
| $45.00 | |
| Tax at 7% | 3.15 |
| Due | $48.15 |
All expenses, including telephone and telegraph and other service charges, incurred by a vendor in making a sale, regardless of their taxable status and regardless of whether they are billed to a customer are not deductible from the receipts.
Example 1:
A photographer contracts with a customer to furnish photographs at $50 each in addition to expenses.
| The customer is billed as follows: | |
| Photographs (2) | $100 |
| Model fees | 60 |
| Meals | 10 |
| Travel | 25 |
| Props (Flowers) | 5 |
| Total due | $200 |
| Receipt subject to tax is $200 |
Example 2:
An appliance repairman charges $10 per hour plus expenses when on a service call. The customer is billed as follows:
| 3 hrs. at $10 | $30 |
| Travel | 15 |
| Parts | 20 |
| Meals | 5 |
| Total due | $70 |
| Receipt subject to tax is $70 |
Any allowance or credit for any tangible personal property accepted in part payment by a vendor on the purchase of tangible personal property or services and intended for resale by such vendor shall be excluded when arriving at the receipt subject to tax. Only the net sale price of tangible personal property or the charge for services would be subject to tax.
Example 1:
A motor vehicle dealer allows a customer $850 for a used automobile, accepted in part payment against the sale price of $3,200 for a new automobile. The used automobile is for resale. The customer is billed as follows:
| New automobile | $3,200 |
| Trade-in | 850 |
| Due | $2,350 |
| Receipt subject to tax is $2,350 |
Example 2:
A vendor accepts a typewriter in trade from a customer on the purchase of an adding machine. The typewriter is intended for resale. The customer is billed as follows:
| Adding machine | $250 |
| Trade-in | 80 |
| Due | $170 |
| Receipt subject to tax is $170 |
Example 1:
A vendor charges his or her customer $15 for transportation of the customer's purchases. The purchases are transported from the vendor's place of business to the customer's home in New York. The customer is billed as follows:
| Purchases | $100.00 |
| Transportation charges | 15.00 |
| Total | $115.00 |
The vendor's entire receipt of $115 is subject to tax, since it is for the sale of taxable property, including the vendor's separately stated portion of the receipt labelled "transportation."
Example 2:
A vendor charges his or her customer $15 for shipping of the customer's purchases. The purchases are drop-shipped from the manufacturer to the purchaser in New York. The customer is billed as follows:
| Purchases | $100.00 |
| Shipping | 15.00 |
| Total | $115.00 |
The entire $115 is subject to tax, for the same reason as in Example 1.
Example 3:
A contractor purchases lumber from a broker. The contract provides that the lumber will be drop-shipped from a producer' s mill in Washington to the job site in New York and prepaid transportation charges will be included. The contractor is billed as follows:
| 1000 board feet of 2 × 4's | $500 |
| (including $100 prepaid freight) | |
| The entire $500 is subject to tax. |
Example 4:
A building contractor purchases six cubic yards of ready-mix concrete. The producer charges $56 per cubic yard for the concrete and $7.50 per cubic yard for delivery. The building contractor is billed as follows:
| 6 cubic yards mix @ $56 | $336 |
| $7.50 delivery fee per cubic yard | 45 |
| Total | $381 |
| The entire $381 is subject to tax. |
Example 5:
X Company operates a retail sales business and its mail order division sells merchandise at retail by mail order. X Company ships its merchandise to its customers through a parcel delivery service or by United States mail. Charges to X Company by the delivery service are determined by the distance the package is shipped and the weight and size of the package. The amount that X Company charges its customer for postage and handling might be more or less than the amount that the delivery service charges X Company for shipping the merchandise to X Company's customer. X Company separately states a charge for postage and handling to its customer when it bills the customer for the merchandise delivered. This charge by X Company to its customer for postage and handling is part of X Company's receipt from the sale of the merchandise and is subject to sales tax, regardless of its being separately stated on the invoice.
Example 6:
A delivery service company makes available to the general public an area in its warehouse where customers may drop off packages to be delivered to persons or businesses in the United States for a fee. The customer dropping off a package for delivery is required to complete an invoice stating his or her name and address, the name and address where such package is to be delivered, and the contents and value of the package. The delivery service company charges a fee to the customer for delivering the package. This fee is based on the weight and value of the package and the distance it is to be delivered. The company's charge to the customer for shipping the package is not subject to sales tax. This is purely a transportation service, which is not a taxable service.
Example 7:
The ABC Moving Company transports household goods for homeowners from one place to another, as well as business property owned by businesses moving from one place to another. ABC's charges to its household or business customers to move their property are not subject to tax, since transportation of goods, as such, is not itself a taxable service.
Example 8:
A record store sells records, cassettes and compact discs at retail through mail-order promotions. The mail-order customer is required to complete an order form. The order form has spaces for items to be ordered, a preprinted charge for postage and handling of $2.95, plus spaces for sales tax and the total. The charge for the postage and handling is subject to tax as it is part of the record store's receipt for the retail sale of tangible personal property.
Example 1:
A vendor sells furniture for $1,000 and charges 11/2 percent interest per month on the outstanding balance. Only the $1,000 is a receipt subject to tax.
Example 2:
A vendor sells furniture for $1,000. The purchaser uses a bank credit card. The bank, when remitting to the vendor, deducts a five percent service charge ($50). The vendor is required to charge and remit tax on $1,000.
Example 3:
A lessor, on credit, purchases equipment for a lessee. The agreement provides that the lessee is to pay $100 per month for equipment rented and $7 per month to reimburse the lessor for interest paid. The tax is to be collected on $107.
A charge made by a vendor to a customer as a deposit on tangible personal property rented, leased or loaned is not deemed to be a taxable receipt, but is collateral security for return of the property. Upon the return of the rented, leased or borrowed tangible personal property, any amount not refunded by the vendor constitutes a taxable receipt.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 526.5