What Goods and Services are Subject to This Tax?
- Clothing and Footwear;
- Most personal property (i.e. alcohol, furniture, electronics, etc.);
- Gas, electricity, refrigeration, steam, telephone, and telegraph services;
- Detective, cleaning, and maintenance services;
- Occupancy of hotel and motel rooms;
- Food and beverages sold by restaurants and caterers;
- Admission charges to places of amusement;
- Credit rating and credit reporting services;
- Beauty, barbering, hair restoring, manicures, pedicures, electrolysis, massage, tanning, tattooing and other, similar services;
- Weight control salons, health salons, gymnasiums, and similar establishments;
- Parking, garaging, or storing motor vehicles
Item 1 - Clothing and footwear under $110 are exempt from New York City and NY State Sales Tax. Purchases above $110 are subject to a 4.5% NYC Sales Tax and a 4% NY State Sales Tax.
Items 2 - 8 - The City Sales Tax rate is 4.5%, NY State Sales and Use Tax is 4% and the Metropolitan Commuter Transportation District surcharge of 0.375% for a total Sales and Use Tax of 8.875 percent.
Items 9 & 10 - The City Sales Tax rate is 4.5% on the service, there is no New York State Sales Tax. If products are purchased, an 8.875% combined City and State tax will be charged.
Item 11 - The City charges a 10.375% tax and an additional 8% surtax on parking, garaging, or storing motor vehicles in Manhattan. If you are a resident of Manhattan and own a motor vehicle registered in Manhattan, you may be eligible for an exemption from the 8% surtax. For those who qualify, the tax will be at a rate of 10.375% instead of 18.375%. Read More
Tax Forms and Filing Information
If your business is registered as a vendor, you must obtain a Certificate of Authority from the New York State Department of Taxation and Finance. This certificate gives your business the authority to collect the required sales and use taxes, and to issue sales tax exemption documents, including resale certificates used for purchasing inventory.
If you make taxable sales before you receive the Certificate of Authority, your business may be subject to substantial penalties. To obtain a Certificate of Authority, you must complete Form DTF-17, Application for Registration as a Sales Tax Vendor, for your business and send it to the address listed in the instructions for that form, at least 20 days before you begin operating your business.
Tax Law Section 1107