Utility Tax
New in 2009:
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Refunds may now be requested within three
years from the time a Utility Tax return is filed or two years from the time
the tax is paid.
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New York City now has the authority to
adopt rules that require electronic filing of tax returns.
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The interest rate on underpayments has
been increased from the federal short- term rate plus five percent to the
federal short-term rate plus seven percent. Also the default rate for
underpayments has been increased from six percent to seven and one half
percent.
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Certain taxpayers and tax preparers who
file using tax software may be required to file electronically and could be
subject to civil penalties for failure to do so.
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Provisions detailing crimes applicable to
the tax has been redefined to conform to recent New York State
revisions.
Who is Subject to This Tax?
Tax Forms & Filing Information
Tax Rates
Legal Authority
Additional Information
Frequently Asked Questions
Who is Subject to This Tax?
This tax is imposed on every utility and vendor of utility services that does business in New York City.
"Utilities" are companies that are subject to the supervision of the New York State Department of Public Service. They include gas and electric companies, telephone companies, and certain transportation companies.
Companies that derive 80 percent or more of their gross receipts from mobile telecommunications services are also considered utilities, regardless of whether or not they are supervised by the Department of Public Service.
Vendors of utility services are those that are not "utilities" themselves, but that sell gas, electricity, steam, water, refrigeration, or telecommunications services, or that operate omnibuses, whether or not these activities represent the vendor’s main business.
Tax Forms and Filing Information
2008 Forms & Publications
Forms & Publications Archive
Filing Information
NOTE: A vendor of utility services is subject to both the UTX and the General Corporation Tax (GCT) or Unincorporated Business Tax (UBT), but is permitted to reduce its business income, for the purposes of the GCT, by the ratio that its gross operating income subject to the UTX bears to its total gross operating income.
UTX returns are due monthly, by the 25th of each month, covering gross income or gross operating income for the preceding calendar month. However, a taxpayer whose prior year’s tax liability was less than $100,000 is permitted to file a semiannual UTX return for the next year on the 25th of July and January.
Tax Rate
The basic utility tax rate is 2.35 percent of gross income or gross operating income. However, different rates apply to bus companies and railroads, as shown below:
|
BUSINESS TYPE
|
TAX RATE
|
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Utilities
|
2.35 percent of gross income
|
|
Omnibus operators subject to NYS Department of Public Service supervision
|
1.17 percent of gross income
|
|
Railroads
|
3.52 percent of gross income
|
|
Vendors of utility services
|
2.35 percent of gross operating income
|
|
Omnibus operators who are not subject to NYS Dept. of Public Service supervision
|
1.17 percent of gross operating income
|
|
Limited fare omnibus companies:
|
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Commuter service
|
.10 percent of gross income
|
|
Other services
|
1.17 percent of gross income
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Legal Authority
Title 11, Chapter
11 Administrative Code, Enabling Act: Tax Law Section 1201(a)
Additional Information
New York City Administrative Code §11-1101(6)
Related links: Refunds, General Corporation Tax, Unincorporated Business Tax
Frequently Asked Questions
Do landlords reselling electricity have to report these receipts on the UTX return?
Effective 01/01/98, the landlord does not have to report these sales, provided that the utility or vendor of utility services that sold the electricity to that landlord has paid the Utility tax.
Does a landlord still have to file Form NYC-UXS if none of his gross income is subject to Utility tax?
No. However, by law, Finance is allowed to request the filing of a return for informational purposes. This is not being done at this time.
Must Utility Tax returns still be filed monthly?
In general, returns must be filed monthly, however if a taxpayer’s utility tax liability is less than $100,000 for the preceding calendar year, returns for the subsequent year can be filed semiannually.
