N.Y. Comp. Codes R. & Regs. tit. 20 § 541.7

Current through Register Vol. 46, No. 45, November 2, 2024

Section 541.7 - Trash and debris removal

(a) Services to real property. A contractor may purchase the service of trash or debris removal without payment of tax as a purchase for resale provided that:

(1) the contractor generated the trash or debris being removed from real property, property or land as a result of the contractor's performance of the service of maintaining, servicing or repairing such real property, property or land;

(2) the contractor's agreement with the owner or authorized occupant of such real property, property or land for whom the contractor performed such service provides that the contractor is responsible to have such trash or debris removed; and

(3) the contractor furnishes to the person performing such trash or debris removal service a properly completed contractor's exempt purchase certificate.

In such circumstances, the contractor's total charges to such owner or authorized occupant for such service of maintaining, servicing or repairing such property and for such trash or debris removal service are subject to tax. However, if the purchaser is an exempt organization described in section 1116(a) of the Tax Law and gives the contractor a properly completed exempt organization certification, then such service would be exempt.

(b) Capital improvements. A contractor may purchase the service of trash or debris removal without payment of tax where:

(1) the contractor performs work which constitutes a capital improvement, to real property, property or land;

(2) the contractor generated the trash or debris to be removed from such real property, property or land as a result of such work;

(3) the contractor obtains a properly completed certificate of capital improvement from the contractor's customer; and

(4) the contractor or such customer furnishes a copy of such certificate to the person performing such trash or debris removal service.

Since the contractor's purchase of the trash or debris removal service is in conjunction with the performance of a capital improvement, the contractor's total charge to its customer for the capital improvement is not subject to tax.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 541.7