 |
Important
As a result of New York State corporate tax reform (Part A of
Chapter 59 of the Laws of 2014 and Part T of Chapter 59 of the
Laws of 2015), the Corporation tax information on page 9 and 10
of this publication is out of date.
For the most up-to-date information, see Corporate Tax Reform
on the Tax Department website.
Publication 20 begins on page 2 below.
|
|
Publication 20
New York State
Tax Guide for
New Businesses
Pub 20 (11/12)
|
| Note: A Publication is an informational document that addresses a particular topic of interest to taxpayers. Subsequent changes in the law or regulations, judicial decisions, Tax Appeals Tribunal decisions, or changes in department policies could affect the validity of the information contained in a publication. Publications are updated regularly and are accurate on the date issued. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning. |
|
Publication 20 (11/12)
Table of contents Page
I. Introduction ..................................................................................................................................................5
II. Types of organizations and tax responsibilities ...........................................................................................5
Sole proprietorships ...............................................................................................................................5
Partnerships ............................................................................................................................................6
Limited liability companies (LLC) and limited liability partnerships (LLP) ........................................6
Estimated tax on behalf of nonresident individuals and corporate partners ..........................................7
Metropolitan commuter transportation mobility tax (MCTMT) on net earnings from
self-employment ....................................................................................................................................7
New York City unincorporated business tax .........................................................................................8
Corporations ...........................................................................................................................................8
New York S corporations.................................................................................................................8
Corporation taxes .............................................................................................................................9
Metropolitan transportation business tax surcharge ......................................................................11
Corporation dissolution and surrender of authority .......................................................................11
III. Federal employer identification number (EIN)..........................................................................................11
IV. Filing requirements for employers .............................................................................................................12
Unemployment insurance, wage reporting, and withholding tax ........................................................12
New employer registration .............................................................................................................12
Unemployment insurance ..............................................................................................................13
Wage reporting...............................................................................................................................13
Withholding tax .............................................................................................................................13
New hire/rehire reporting requirement ................................................................................................13
Employment verification system .........................................................................................................14
Workers’ compensation and disability benefits ...................................................................................15
Metropolitan commuter transportation mobility tax (MCTMT) for employers ..................................15
V. Sales and use taxes .....................................................................................................................................15
Sales tax registration ............................................................................................................................16
Taxable business purchases .................................................................................................................16
Terminating business ...........................................................................................................................18
VI. Miscellaneous taxes and fees .....................................................................................................................19
Cigarettes and tobacco products ..........................................................................................................19
Wholesale dealer of cigarettes .......................................................................................................19
Cigarette agent ...............................................................................................................................20
Wholesale dealer of tobacco products ...........................................................................................21
Distributor of tobacco products .....................................................................................................21
Retail dealer ...................................................................................................................................22
Vending machine owner and operator ...........................................................................................22
Minimum cigarette prices ..............................................................................................................23
Tobacco Escrow Funds Act ...........................................................................................................23
Enforcement provisions for the sale, shipment, and possession of cigarettes
and tobacco products in New York State .......................................................................................24
Beverage container deposits ................................................................................................................24
Alcoholic beverages .............................................................................................................................25
Registrations, licenses, and permits ...............................................................................................26
Direct wine shipments into New York State by out-of-state wineries...........................................26
3
|
|
Publication 20 (11/12)
Table of contents (continued) Page
Petroleum products ..............................................................................................................................27
Distributor of motor fuel ................................................................................................................27
Importing/exporting transporter .....................................................................................................28
Terminal operator...........................................................................................................................28
Distributor of diesel motor fuel......................................................................................................28
Retailer of non-highway diesel motor fuel only ............................................................................28
Distributor of kero-jet fuel only .....................................................................................................28
Aviation fuel business ....................................................................................................................29
Residual petroleum product business.............................................................................................29
Highway use and fuel use taxes ...........................................................................................................29
Highway use tax .............................................................................................................................29
Fuel use tax ....................................................................................................................................30
Taxes for furnishing utility and telecommunication services ..............................................................31
Waste tire management fee ..................................................................................................................32
New York City taxicab and hail vehicle trip tax..................................................................................32
Boxing and wrestling exhibitions tax ..................................................................................................33
VII. Purchasing or acquiring a business or its assets – Caution .......................................................................33
Sales tax information ...........................................................................................................................33
Bulk sale transactions (examples) .................................................................................................36
Real estate transfer tax information .....................................................................................................36
Licenses or registrations ......................................................................................................................37
VIII. Business incentives ....................................................................................................................................37
IX. Additional information...............................................................................................................................37
Recordkeeping for small businesses ....................................................................................................37
Sales and use tax recordkeeping ....................................................................................................38
Tax year .........................................................................................................................................38
Accounting methods for income and corporate franchise taxes ....................................................38
Accounting methods for sales and use tax .....................................................................................39
Bookkeeping systems.....................................................................................................................39
Privacy and confidentiality ..................................................................................................................40
Power of attorney ...........................................................................................................................40
Tax information authorization .......................................................................................................41
Third-party designee ......................................................................................................................41
E-ZRep Form TR-2000, Tax Information Access and Transaction Authorization .......................41
Online Services ....................................................................................................................................41
Change in your business information ..................................................................................................42
Permits and licenses .............................................................................................................................43
X. New York State assistance .........................................................................................................................44
XI. New York City (NYC) assistance ..............................................................................................................46
XII. Federal assistance.......................................................................................................................................47
4
|
|
Publication 20 (11/12)
I. Introduction
Whether you are starting a new business or purchasing an existing one, you
will need some basic information about New York State’s Tax Law and
regulations. This Tax Guide for New Businesses outlines the procedures to
follow and the forms to file with the New York State Department of
Taxation and Finance (the Tax Department). If you are purchasing an
existing business or purchasing assets from an existing business, see
Chapter VII, Purchasing or acquiring a business or its assets - Caution,
starting on page 33 of this guide.
For information on legal requirements for doing business in New York State
and a comprehensive listing of state, local, and federal government agency
resources, visit the New York State Web site (www.nyfirst.ny.gov). For
federal tax information, visit the Internal Revenue Service (IRS) Web site
(www.irs.gov).
To receive e-mail notifications containing links to newly posted tax
information, including publications, TSB-Ms (technical memorandums),
Important Notices, Advisory Opinions, and Tax Bulletins issued by the Tax
Department, visit our Web site (www.tax.ny.gov) and sign up for the
Subscription Service.
II.Types of organizations and tax responsibilities
Your responsibilities as a new business owner, whether you start a business
or buy an existing business, will vary depending on the type of organization
or entity you operate.
Regardless of the type of organization you choose, you and your business
must comply with federal laws and with the laws of any state in which you
operate your business. Before organizing a business, you may wish to
consult a professional.
Below are brief descriptions of the various business organizations and
entities recognized in New York State and the related New York State tax
requirements.
Sole A sole proprietorship is a business owned and operated by one person (a
sole proprietor). This is the simplest and most common form of small
proprietorships
business organization. Sole proprietors must report their business profits or
losses on their federal and New York State personal income tax returns.
• If you are a full-year New York State resident, use Form IT-201,
Resident Income Tax Return.
5
|
|
Publication 20 (11/12)
• If you are a nonresident or part-year resident of New York State who
has income from New York sources, use Form IT-203, Nonresident
and Part-Year Resident Income Tax Return.
If you expect to owe New York State, New York City, or Yonkers income
tax when you file your personal income tax return, you may be required to
make estimated tax payments during the year. For more information, see the
Tax Department Web site, Form IT-2105, Estimated Income Tax Payment
Voucher for Individuals, and the instructions for Form IT-2105.
Partnerships A partnership exists when two or more persons join together to carry on a
trade or business.
For federal and New York State income tax purposes, the term partnership
includes a syndicate, group, pool, joint venture, or other unincorporated
organization that is carrying on a trade or business. The term partnership
also includes a limited liability partnership (LLP) or a limited liability
company (LLC) that is treated as a partnership for federal income tax
purposes. A corporation, trust, or estate is not a partnership (although it may
be a partner in a partnership).
• A partnership reports its income on Form IT-204, Partnership Return,
but does not pay state income tax.
• A partnership, LLC, or LLP that is required to file Form IT-204 may
be subject to a filing fee and must also file Form IT-204-LL,
Partnership, Limited LiabilityCompany, and Limited Liability
Partnership Filing Fee Payment Form.
A partner that is an individual, estate, or trust must include their share of
income from a partnership on their personal income tax return or fiduciary
income tax return. A partner that is a corporation will include its share of
income from a partnership on its corporation franchise tax return.
Limited liability An LLC is an unincorporated organization of one or more members, each
having limited liability for the contractual and other liabilities of the
companies (LLC)
business, formed for any lawful business purpose under the Limited
and limited
Liability Company Law of New York State or any other jurisdiction.
liability
partnerships An LLP is a partnership that provides professional services and has
(LLP) registered as a limited liability partnership under Article 8-B of the
Partnership Law of New York State or any other jurisdiction.
An LLC or LLP that has New York source income and is treated as a
partnership for federal income tax purposes will be treated as a partnership
for New York State tax purposes (see Partnerships above).
6
|
|
Publication 20 (11/12)
An LLC or LLP that is treated as a corporation, including an S corporation,
for federal income tax purposes will be treated as a corporation for
New York tax purposes or as a New York S corporation if the New York S
election is made (see Corporations on page 8).
For more information regarding LLCs and LLPs, refer to Publication 16,
New York Tax Status of Limited Liability Companies and Limited Liability
Partnerships.
For information about the New York City tax treatment of LLCs and LLPs,
see Finance Memorandum 99-1 (dated October 21, 1999) available on the
New York City Department of Finance Web site (www.nyc.gov/html/dof).
Estimated tax on Every partnership (including an LLC or an LLP that is treated as a
partnership for federal income tax purposes) that has income derived from
behalf of
New York sources may be required to pay estimated income tax on behalf
nonresident
of its partners or members who are nonresident individuals or corporations
individuals and (other than New York S corporations).
corporate partners
For more information, see the instructions for the following forms:
• Form IT-2658, Report of Estimated Tax for Nonresident Individual
Partners and Shareholders;
• Form CT-2658, Report of Estimated Tax for Corporate Partners;
• Form IT-2658-E, Certificate of Exemption from Partnership or
New York S Corporation Estimated Tax Paid on Behalf of Nonresident
Individual Partners and Shareholders ;or
• Form CT-2658-E, Certificate of Exemption from Partnership
Estimated Tax Paid on Behalf of Corporate Partners.
Metropolitan If you are an individual (including a partner in a partnership or a partner or
member of an LLP or LLC treated as a partnership for federal income tax
commuter
purposes) who has net earnings from self-employment allocated to the
transportation metropolitan commuter transportation district (MCTD), you are subject to
mobility tax the metropolitan commuter transportation mobility tax (MCTMT).
(MCTMT) on net However, if your total net earnings from self-employment allocated to the
earnings from MCTD are $50,000 or less for the tax year, no MCTMT is due.
self-employment
The MCTD includes New York City (the counties of New York
(Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island)),
and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess,
and Westchester.
If you will owe any MCTMT for the tax year, you must make estimated
MCTMT payments and file an annual MCTMT return.
7
|
|
Publication 20 (11/12)
Partnerships – Partnerships are required to make estimated MCTMT
payments on behalf of certain partners who are nonresidents of
New York State and have net earnings from self-employment allocated to
the MCTD. In addition, partnerships can request permission to make group
estimated MCTMT payments and file an annual MCTMT group return on
behalf of qualified partners.
For more information on the MCTMT, see Publication 420, Guide to the
Metropolitan Commuter Transportation Mobility Tax, visit the Tax
Department Web site, or call (518) 485-2392.
New York City If you plan to conduct business in New York City as a sole proprietor or
partnership (including an LLC or LLP that is treated as a partnership for
unincorporated
federal income tax purposes), you or your business may be subject to the
business tax
New York City unincorporated business tax.
For more information on the unincorporated business tax, visit the
New York City Department of Finance Web site (www.nyc.gov/html/dof).
Corporations A corporation is a legal entity created by filing a Certificate orArticles of
Incorporation with a state, and has a legal existence separate and distinct
from its owners (shareholders).
• A domestic corporation is a corporation incorporated by or under the
laws of New York State. A domestic corporation may be formed by
filing a Certificate of Incorporation with the New York State
Department of State, under section 402 of the Business Corporation
Law.
• A foreign corporation is a corporation incorporated under the laws of
another state or foreign country. Foreign corporations that want to be
authorized to do business in New York State must be authorized by the
New York State Department of State. For more information, see
Publication 24, Authorization for Foreign Corporations to Do
Business in New York.
For more information on forming corporations and licensing and
registration requirements for various types of businesses in New York State,
visit the New York State Department of State Web site (www.dos.ny.gov) or
call: (518) 474-4429 or (212) 417-5747.
New York S Under the Internal Revenue Code (IRC), certain corporations may elect to
corporations be S corporations for federal income tax purposes. If the federal election is
approved, the shareholders of corporations subject to the New York State
franchise tax on general business corporations (Article 9-A) may make a
similar election for New York State tax purposes by filing Form CT-6,
Election by a Federal S Corporation to be Treated as a New York S
Corporation. If the state election is also made, shareholders of the
8
|
|
Publication 20 (11/12)
corporation pay New York State personal income tax on their pro rata share
of income earned by the S corporation.
If the shareholders of a general business corporation make the election to be
a New York State S corporation and the corporation is subject to the
franchise tax on general business corporations, the corporation is subject to
the fixed dollar minimum tax determined under Tax Law section 210(1)(d).
A special rule applies in the case of an S corporation subject to the franchise
tax on general business corporations where the shareholders have not made
the election to be a New York State S corporation. In those instances, the
shareholders will be deemed to have made the election if more than 50% of
the S corporation’s current year federal gross income is derived from
investment income. The deemed election applies to the entire current tax
year.
Estimated tax of nonresident shareholders – A New York S corporation
that has income derived from New York sources may be required to pay
estimated tax on behalf of its shareholders who are nonresident individuals.
For more information, see the instructions for Form IT-2658, Report of
Estimated Tax for Nonresident Individual Partners and Shareholders.
For more information on S corporations, see Publication 35, New York Tax
Treatment of S Corporations and Their Shareholders.
For information on the fixed dollar minimum tax, refer to the instructions
for Form CT-3-S, New York S Corporation Franchise Tax Return, and
Important Notice N-07-1, Important Information for New York S
Corporations Subject to Article 9-A of the Tax Law.
Corporation taxes Corporations typically file franchise tax returns on an annual basis. The
type of return filed depends on the type(s) of business conducted by the
corporation.
• A domestic corporation is generally liable for franchise taxes for each
fiscal or calendar year, or part thereof, during which it is incorporated,
until it is formally dissolved by the Department of State. However, a
domestic corporation that is no longer doing business, employing
capital, or owning or leasing property in New York State is exempt
from the fixed dollar minimum tax for years following its final tax
year, provided it meets the requirements listed in TSB-M-06(5)C,
Certain Domestic Business Corporations Exempt from the Article 9-A
Fixed Dollar Minimum Tax.
• Every foreign corporation that does business, employs capital, owns
or leases property in a corporate or organized capacity, or maintains an
office in New York State (whether or not the corporation has been
authorized by the Department of State) must file a corporate tax return
9
|
|
Publication 20 (11/12)
and pay franchise tax. In addition, these foreign corporations must pay
a license fee computed on Form CT-240, Foreign Corporation License
Fee Return. The fee is in addition to the annual franchise tax and is
payable only once unless the corporation’s capital share structure
changes or the amount of the corporation’s capital stock employed in
New York State increases from the time the last license fee return was
filed. Form CT-240 is filed with the first corporation franchise tax
return.
Foreign corporations that are authorized to do business in
New York State under Article 13 or 15-A of the Business Corporation
Law are subject to an annual maintenance fee, whether or not they
actually conduct business in New York State. If an authorized foreign
corporation files a corporate tax return, the amount of the franchise tax
is credited against the maintenance fee. If a foreign corporation
authorized to do business in New York State is not required to file a
corporate tax return, the corporation must file Form CT-245,
Maintenance Fee and Activities Return For a Foreign Corporation
Disclaiming Tax Liability ,to remit the maintenance fee.
Most corporations are subject to the tax on general business corporations
imposed by Article 9-A of the Tax Law. Each corporation computes a tax
on four different measures:
• a tax measured by the entire net income base,
• a tax measured by the capital base,
• a tax measured by the minimum taxable income base, and
• a tax measured by the fixed dollar minimum.
The corporation pays the highest computed tax, plus a tax on the subsidiary
capital base, if applicable. The tax on the capital base may not apply to
certain small business corporations for their first two tax years.
• Railroad and trucking corporations are taxed under Article 9-A unless
they elect to be taxed under the franchise taxes imposed by
sections 183 and 184 of Article 9. To make the election, corporations
must file Form CT-187, Election or Revocation of Election By
Railroad and Trucking Corporations To Be Taxable Under Article 9.
• Farmers, fruit growers, and similar agricultural corporations organized
and operated on a cooperative basis as described in Article 6 of
New York State’s Cooperative Corporation Law are subject to the tax
imposed by section 185 of Article 9 if they are formed under the laws
of New York State or are conducting business or holding property in
10
|
|
Publication 20 (11/12)
New York State and must file Form CT-185, Cooperative Agricultural
Corporation Franchise Tax Return.
For more information, visit the Tax Department Web site or call our
Corporation Tax Information Center at (518) 485-6027.
Metropolitan If a corporation (other than a New York S corporation) does business in the
transportation metropolitan commuter transportation district (MCTD), it must also file and
business tax pay a metropolitan transportation business tax surcharge (MTA surcharge)
surcharge on business done in the MCTD.
The MCTD includes New York City (the counties of New York
(Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island)),
and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess,
and Westchester.
Corporation A domestic corporation that is no longer doing business and wishes to be
dissolution and dissolved by the Secretary of State must first obtain written consent from
surrender of the Tax Department.
authority
A foreign authorized corporation (that will remain in existence in its home
state) that wishes to surrender its authority to do business in New York
State must first obtain written consent from the Tax Department.
Beforethe department will grant consent for corporate dissolution or
surrender of authority, a corporation must:
• have filed all required tax returns, and
• not have any unpaid New York State taxes.
For more information, visit the Tax Department Web site, see
TSB-M-06(5)C, Certain Domestic Business Corporations Exempt from the
Article 9-A Fixed Dollar Minimum Tax, or call the Tax Department’s
Corporation Dissolution Unit at (518) 485-2639.
III. Federal employer identification number (EIN)
Every business, except for certain sole proprietorships that do not have any
employees, should have a federal employer identification number (EIN).
Certain nonprofit organizations (churches, clubs, etc.), trusts, and estates
must also have a federal EIN.
You may apply for a federal EIN for your business online through the
Internal Revenue Service (IRS) Web site (www.irs.gov) or by filing federal
Form SS-4, Application for Employer Identification Number, with the IRS.
11
|
|
Publication 20 (11/12)
Form SS-4 is available on the IRS Web site or by calling the IRS Business
and Specialty Tax Line at 1 800 829-4933.
For information on the federal requirements for EINs, see IRS
Publication 1635, Understanding Your EIN -Employer Identification
Numbers.
If you are not required to have a federal EIN for your business, the Tax
Department will assign an account number to be used on all of your
New York State business tax records.
IV. Filing requirements for employers
Unemployment If you hire employees, your business is subject to the laws requiring the
withholding of federal social security taxes, as well as federal and state
insurance, wage
income taxes. You are also responsible for paying for unemployment
reporting, and
insurance, workers’ compensation and disability insurance, and for filing
withholding tax quarterly wage reports.
For more information relating to New York State unemployment insurance,
income tax withholding (including New York City and/or Yonkers, if
applicable), and wage reporting, see Publication NYS-50, Employer’s
Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax.
For federal wage reporting and withholding information, see IRS
Publication 15, (Circular E), Employer’s Tax Guide, which explains
employer filing responsibilities and the withholding and payment of federal
income and employment taxes.
New employer New employers can obtain information on how to register for
registration New York State unemployment insurance, wage reporting, and withholding
tax by contacting either the New York State Department of Labor (DOL) or
the Tax Department.
You should have your federal employer identification number (EIN)
before you register as an employer with New York State.
• New York State Department of Labor
Web site: www.labor.ny.gov
Telephone assistance is available Monday through Friday by calling
1 888 899-8810 or (518) 485-8589.
• New York State Tax Department
Web site: www.tax.ny.gov
Telephone assistance is available Monday through Friday by calling
(518) 485-6654.
12
|
|
Publication 20 (11/12)
Unemployment Generally, if your business has a gross payroll of $300 or more in a calendar
insurance quarter, your business is subject to the New York State Unemployment
Insurance Law and must register with DOL (see New employer registration
on page 12). For information about unemployment insurance liabilities, call
DOL toll free at 1 888 899-8810.
Wage reporting The Tax Department is required to collect wage reporting information based
on definitions used by DOL in administering the unemployment insurance
program.
Every employer who is liable under the provisions of the New York State
Unemployment Insurance Law is required to file a quarterly wage report
with the department on Form NYS-45, Quarterly Combined Withholding,
Wage Reporting, and Unemployment Insurance Return, and if needed,
Form NYS-45-ATT, Quarterly Combined Withholding, Wage Reporting,
and Unemployment Insurance Return – Attachment.
Forms NYS-45 and NYS-45-ATT may be filed online using the Tax
Department’s Web File system (at www.tax.ny.gov) or on paper.
Withholding tax Every employer paying wages or making certain other payments (such as
pensions) subject to New York State, New York City, or Yonkers income
tax withholding must file a return and pay the taxes required to be withheld.
In general, New York State conforms to federal withholding tax concepts.
For specific information, see Form NYS-1, Return of Tax Withheld, the
instructions for Form NYS-1, Form NYS-45, Quarterly Combined
Withholding, Wage Reporting, and Unemployment Insurance Return, and
the instructions for Form NYS-45.
New hire/rehire You must report to the Tax Department certain identifying information
about newly hired or rehired employees working in the state within 20
reporting
calendar days of the hiring date.
requirement
A newly hired or rehired employee means an employee:
• previously not employed by the employer, or
• previously employed by the employer but separated from such prior
employment for 60 or more consecutive days.
The hiring date is the first day compensated services are performed by an
employee. This is the first day any services are performed for which the
employee will be paid wages or other compensation.
The following information must be provided for each newly hired
employee:
• employee name (first, middle initial, last);
13
|
|
Publication 20 (11/12)
• employee address (street, city, state, and ZIP code);
• employee social security number;
• employer name;
• employer address (street, city, state, and ZIP code);
• employer identification number (assigned by IRS);
•if dependent health insurance benefits are available to the employee
and if so, the date the employee qualifies for the benefits; and
•hire date.
New York State employers may report new hire information:
•electronically through the department’s new hire Web site
(www.nynewhire.com/#/login);
•by submitting a completed and legible copy of the employee’s
Form IT-2104, Employee’s Withholding Allowance Certificate (or
Form IT-2104-E, Certificate of Exemption from Withholding) in place
of or in addition to the federal Form W-4, Employee’s Withholding
Allowance Certificate.
Employers who are required to report to New York (and multistate
employers who designate New York as their reporting state) should submit
the new hire information:
• via the Internet at www.nynewhire.com/#/login
•by fax to (518) 320-1080; or
•by mail to:
NYS DEPT OF TAXATION & FINANCE
NEW HIRE NOTIFICATION
PO BOX 15119
ALBANY, NY 12212-5119
For more information on the new hire reporting program and your
responsibilities and requirements, visit the Tax Department’s new hire Web
site (www.nynewhire.com/#/login) or see Publication NYS-50, Employer’s
Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax.
Employment You must maintain records that show you have reviewed documents that
identify each employee and show that each employee is eligible to work in
verification system
the United States.
You must have each employee complete federal Form I-9, Employment
Eligibility Verification. You must keep these forms for three years after the
date an employee is hired or one year after the date that employment ends,
14
|
|
Publication 20 (11/12)
whichever is later. Form I-9 is available on the U.S. Citizenship and
Immigration Services Web site (www.uscis.gov), or by calling their toll free
forms request line at 1 800 870-3676.
For more information on the Federal Immigration Reform and Control Act
or for general information from the USCIS, call the Office of Business
Liaison at 1 800 357-2099.
Workers’ You should be aware of the obligations you have to provide workers’
compensation insurance and disability insurance to your employees.
compensation and
Information about these types of insurance and the forms needed to apply
disability benefits
for the insurance are available from private insurance companies or from
the local office of the State Insurance Fund. You can also get information
on current rates for workers’ compensation and disability insurance by
visiting the State Insurance Fund Web site (www.nysif.com), or by calling
the State Insurance Fund at 1 888 875-5790.
Metropolitan Certain employers that engage in business within the metropolitan
commuter transportation district (MCTD) are liable for the MCTMT for a
commuter
calendar quarter if they are required to withhold New York State income tax
transportation
from wages paid to employees and their payroll expense for all covered
mobility tax employees is more than $312,500 for that calendar quarter.
(MCTMT) for
employers The MCTD includes New York City (the counties of New York
(Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island)),
and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess,
and Westchester.
For more information, seePublication 420, Guide to theMetropolitan
Commuter Transportation Mobility Tax, visit the Tax Department’s Web
site, or call (518) 485-2392.
V. Sales and use taxes
If you will be selling tangible personal property (goods), certain services,
hotel occupancy, food or drink in a restaurant, tavern or other
establishment, or receiving admission charges in New York State, you may
be required to collect state and local sales and use taxes (sales tax).
See Publication 750, A Guide to Sales Tax in New York State, and these Tax
Bulletins for information about sales and use taxes, including information to
help you determine if your business will be making sales of goods or
services that are subject to sales tax:
• Do I Need to Register for Sales Tax? (TB-ST-175)
• Exemption Certificates for Sales Tax (TB-ST-240)
• Filing Requirements for Sales and Use Tax Returns (TB-ST-275)
15
|
|
Publication 20 (11/12)
• How to Register for New York State Sales Tax (TB-ST-360)
• Quick Reference Guide to Taxable and Exempt Property and Services
(TB-ST-740)
• Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770)
If you will be making taxable sales, you must be registered for sales tax
purposes before you begin making sales of taxable goods and services.
In addition, you must be registered in order to issue or accept most
New York State sales tax exemption documents. For example, when you
(including a wholesale distributor or manufacturer) buy taxable goods or
services that you intend to resell, you must provide the supplier with a
properly completed exemption document (e.g., resale certificate) to make
the purchase without payment of tax. In most cases, you must also be
registered in order to issue that document. For information on the use and
acceptance of exemption documents, see Tax Bulletin Exemption
Certificates for Sales Tax (TB-ST-240), and TSB-M-07(1)S, Electronic
Resale and Exemption Documents for Sales and Compensating Use Taxes.
Note: If you are purchasing an existing business or purchasing or otherwise
acquiring assets from an existing business, see Chapter VII, Purchasing or
acquiring a business or its assets – Caution, starting on page 33.
Sales tax If you are required to be registered, you must obtain a Certificate of
Authority from the Tax Department. This certificate gives you the authority
registration
to collect the required sales tax, and to issue or accept sales tax exemption
documents, including resale certificates used for purchasing inventory. You
must apply for your certificateat least 20 days before you begin
operating your business. If you begin your business before you receive a
Certificate of Authority, you may be subject to substantial penalties (which
are calculated based on the number of days you make sales without a
Certificate of Authority).
To obtain a Certificate of Authority, apply using New York Business
Express. For more information, see Tax Bulletin How to Register for New
York State Sales Tax (TB-ST-360).
Taxable business If you are conducting business in New York State, you should be aware that
purchases you are required topay state and localsales and use taxes in the following
situations, whether or not you are required to be registered for sales tax
purposes:
• You purchase taxable property (such as inventory) or services for
resale, but you later use the property or services rather than reselling
them.
• You purchase taxable property without payment of tax from a seller
16
|
|
Publication 20 (11/12)
who is located outside of New York State, and you use that property in
this state.
• You purchase taxable gas or electricity without payment of tax from a
seller who is located outside New York State, and you use that gas or
electricity in this state.
• You send property out of New York State to have a taxable service
performed on that property, do not pay tax, and then use that property
in this state.
• You purchase property or services outside New York State and you
pay the other state’s tax, but you use the property in New York State
(see Publication 39, A Guide to New York State Reciprocal Credits for
Sales Taxes Paid to Other States).
• You purchase taxable property, services, hotel occupancy, food or
drink, or pay admission charges in New York State without payment
of taxes.
• You purchase taxable property in one county or city in New York
State and then use the property in a county or city with a higher rate of
tax than where you purchased the property.
• You have a taxable service performed on property in one county or
city in New York State and then use the property in a county or city
with a higher rate of tax than where you had the taxable service
performed.
Taxes due in the above situations are generally computed on the sales price
paid. You compute the amount of sales and use taxes due by applying the
combined state and local sales tax rate to the sales price. However, if you
purchase and use the property outside New York State for more than six
months before first using the property inside the state, tax due may be
calculated on the lower of the sales price or the fair market value of the
property at the time you bring it into this state.
If you purchase taxable property outside the state and then bring the
property into New York State and use it while performing a contract for a
period of less than six months, you may elect to calculate the tax due on the
lower of (1) the sales price paid, or (2) the fair rental value of the property
for the period of use within New York State. However, this applies only if
the property is not completely consumed, or is not incorporated into real
property, in New York State.
Under certain circumstances, the tax you paid to another state or local
jurisdiction qualifies for credit against the New York State and local tax you
owe. For more information, see Publication 39, A Guide to New York State
17
|
|
Publication 20 (11/12)
Reciprocal Credits for Sales Taxes Paid to Other States.
Generally, you will not owe New York tax on property or services you
purchased outside New York State before you become a resident of
New York State. You are a New York resident when you:
• incorporate your business under the laws of New York State,
• conduct business or maintain a place of business within the state, or
• move into the state to live here.
This rule also applies in a similar manner to local sales and use taxes.
To report sales and use taxes:
• If you are registered or required to be registered with the department
for sales tax purposes, you must report the sales and use taxes incurred
in connection with the taxable business purchases with your monthly,
quarterly, or annual sales tax return.
• If you are an individual, estate, or trust that is doing business in
New York State and you are not registered or required to be registered
for sales tax purposes, you are not required to file a monthly, quarterly,
or annual sales tax return. Therefore, you must report the sales and use
taxes incurred in connection with taxable business purchases on your
personal income tax return, your fiduciary income tax return, on
Form ST-140, Individual Purchaser’s Annual Report of Sales and Use
Tax ,or on Form ST-141, Individual Purchaser’s Periodic Report of
Sales and Use Tax.
• If your business is a corporation, New York S corporation, partnership,
limited liability partnership (LLP), or a limited liability company
(LLC) that is not registered or required to be registered for sales tax
purposes, you must report the sales and use taxes incurred in
connection with the taxable business purchases on Form ST-130,
Business Purchaser’s Report of Sales and Use Tax ,within 20 days
from the date the property or service purchased is first brought or
delivered into New York State.
For more information on taxable business purchases, see Publication 774,
Purchaser’s Obligations to Pay Sales and Use Taxes Directly to the Tax
Department, Questions and Answers.
Terminating If you are registered for sales tax purposes and you sell or otherwise
discontinue your business, you must surrender yoursales tax Certificate of
business
Authority with the final sales tax return. For more information, see Tax
Bulletin Amending or Surrendering a Certificate of Authority (TB-ST-25).
The final sales tax return is due within 20 days of terminating business
18
|
|
Publication 20 (11/12)
operations. If you have any questions regarding this procedure, call the
Sales Tax Information Center at (518) 485-2889.
If you plan to sell, transfer, or assign the assets of your business, you must
give each prospective buyer a copy of Form TP-153, Notice to Prospective
Purchasers of a Business or Business Assets. This form advises buyers of
the requirement to notify the department of the purchase.
VI. Miscellaneous taxes and fees
If you own or operate certain types of businesses, there may be additional
tax requirements, including licenses and registrations. Below are brief
descriptions of the various requirements. For further information, contact
our Miscellaneous Business Tax Information Center at (518) 457-5735.
Please note: These licenses and registrations are not transferable. See
Licenses or registrations on page 37 for more information.
Cigarettes and The following sections describe the licenses and registrations required for
businesses dealing with cigarettes and tobacco products (cigars, roll-your-
tobacco products
own tobacco (RYO), snuff, etc.). You may be required to obtain more than
one type of registration or license described in this section, depending on
the nature of your business.
For more information about the licenses and registrations described below,
contact the New York State Tax Department Registration and Bond Unit at
(518) 591-3111.
Sales tax registration requirement – You must be registered for sales tax
purposes (see Sales tax registration on page 16) before any of the
registrations or licenses described below will be approved. Sales tax
registration is required even if your business will not actually collect or pay
sales tax to the department.
Wholesale dealer of If you sell cigarettes to retail dealers or other persons for resale, or own,
cigarettes operate, or maintain vending machines upon premises owned by another
person, you must be licensed as a wholesale dealer. For information on the
licensing requirements for vending machines, see Vending machine owner
and operator on page 22.
To apply for a license as a wholesale dealer of cigarettes, file
Form CG-100-W, Application for License as a Wholesale Cigarette Dealer
Other Than Those Who Only Operate Vending Machines . A $1,500
nonrefundable application fee must accompany your application form.
Additionally, you must file a $10,000 bond with the Tax Department before
you will be registered as a wholesale dealer of cigarettes.
Use Form CG-100-C, Checklist for Applications CG-100-A, CG-100-W,
19
|
|
Publication 20 (11/12)
and CG-100-V, to ensure that all the necessary items are included with your
application.
Once registered, wholesale dealers of cigarettes, including wholesale
dealers who are also agents, must file a quarterly information return. For
more information see:
• TSB-M-10(2)M, Wholesale Dealers of Cigarettes and Tobacco
Products Must Begin Filing Quarterly Informational Returns, and
• N-12-2, New Policy for Filing Wholesale Dealer of Cigarettes
Informational Return.
New York City – If you wish to sell cigarettes at wholesale in
New York City, you need a New York City Wholesale Cigarette License.
Contact the New York City Finance Department’s Wholesale Cigarette
Licensing Unit at (718) 610-4080 for more information.
Cigarette agent All cigarette packages held for sale in New York State must bear
New York State cigarette tax stamps. If you want to purchase and affix
New York State cigarette tax stamps to packages of cigarettes, you must
first be licensed as a cigarette agentwith New York State.
To apply, file Form CG-100-A, Application for License as a Cigarette
Agent or Agent/Wholesaler. A nonrefundable application fee of $1,500
($3,000 if applying as both an agent and wholesale dealer) must accompany
the application. Agents who wish to purchase cigarette tax stamps on credit
must submit a cigarette credit bond or other acceptable security in the
amount of the monthly credit desired. Use Form CG-100-C, Checklist for
Applications CG-100-A, CG-100-W, and CG-100-V, to ensure that all the
necessary items are included with your application.
Once registered, you must file a monthly report, using Form CG-5,
Nonresident Agent Cigarette Tax Report, or Form CG-6, Resident Agent
Cigarette Tax Report.
If you wish to be licensed as a wholesale dealer of cigarettes (as described
above) and as a cigarette agent, you should apply for both licenses using
Form CG-100-A, Application for License as a Cigarette Agent or
Agent/Wholesaler.
New York City – If you wish to purchase and affix the joint
New York State and New York City cigarette tax stamps to packages of
cigarettes, you must also be licensed as a cigarette agent with
New York City. Visit the New York City Finance Department’s Web site
(www.nyc.gov/html/dof) for more information.
20
|
|
Publication 20 (11/12)
Wholesale dealer of You must be licensed as a wholesale dealer of tobacco products if you:
tobacco products
• sell tobacco products to retail dealers or other persons for purposes of
resale;
• own, operate, or maintain one or more tobacco products vending
machines in, at, or upon premises located within New York State that
are owned or occupied by any other person; or
• sell tobacco products to an Indian nation or tribe or to a reservation
cigarette seller on a qualified reservation.
To apply, file Form MT-202, Application for a License as a Wholesale
Dealer of Tobacco Products or an Appointment as a Distributor of Tobacco
Products. No application fee is required. Use Form MT-202-C, Checklist
for Form MT-202, to ensure that all the necessary items are included with
your application.
Once registered, you must file a quarterly report, using Form MT-203-W,
Wholesale Dealer of Tobacco Products Informational Return ,and
accompanying schedules( Form MT-203-W-A and Form MT-203-W-T),
unless you are:
• licensed only to operate vending machines, or
• appointed or required to be appointed as a distributor of tobacco
products by the department.
Note: If you do not file required returns, or if you file returns that are not
properly completed, the department may cancel or suspend your wholesale
dealer of tobacco products license.
Distributor of tobacco You must request appointment as a distributor of tobacco productsif you:
products
• import or cause to be imported into this state any tobacco products for
sale;
• manufacture any tobacco products in this state; or
• are located outside New York State and want to file returns and pay
tax due on tobacco products sold, shipped, or delivered by you from
outside the state to any person in the state.
To apply, file Form MT-202, Application for a License as a Wholesale
Dealer of Tobacco Products or an Appointment as a Distributor of Tobacco
Products. Distributors of tobacco products are required to file monthly
Form MT-203, Distributor of Tobacco Products Tax Return.
21
|
|
Publication 20 (11/12)
Retail dealer If you intend to sell cigarettes or tobacco products at retail in
New York State, you must register with the department before making any
sales.
To apply, file Form DTF-716, Application for Registration of Retail
Dealers and Vending Machines for Sales of Cigarettes and Tobacco
Products. See Form DTF-716 for current application fees. Also use
Form DTF-716 if you have already registered and wish to add new
locations or additional vending machines.
Registrations expire on December 31 of each year and must be renewed
annually, using Form DTF-719, Renewal Application for Registration of
Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco
Products. The department will automatically send registrants the renewal
application prior to the renewal date.
New York City – If you intend to sell cigarettes at retail in New York City,
you need a New York City Retail Cigarette Dealer’s License. For more
information, contact the New York City Department of Consumer Affairs:
Dial 311 from inside New York City; call (212) NEW YORK (639-9675) if
your business is outside the five boroughs; or visit their Web site
(www.nyc.gov/html/dca).
Vending machine Owners or operators of vending machines located in New York State
owner and operator through which cigarettes or tobacco products are sold must register with the
department before making any sales.
To apply, file Form DTF-716, Application for Registration of Retail
Dealers and Vending Machines for Sales of Cigarettes and Tobacco
Products. See Form DTF-716 for current application fees. Also use
Form DTF-716 if you have already registered and wish to add additional
vending machines.
Registrations expire on December 31 of each year and must be renewed
annually, using Form DTF-719, Renewal Application for Registration of
Retail Dealers and Vending Machines for Sales of Cigarettes and Tobacco
Products. The department will automatically send registrants the renewal
application prior to the renewal date.
If you own, operate, or maintain one or more cigarette or tobacco products
vending machines located at premises owned or occupied by another
person, youmust possess a license as a wholesaledealer of cigarettes or as
a wholesale dealer of tobacco products (seeWholesaledealer of cigarettes
on page 19 and Wholesale dealer of tobacco products on page 21). There is
no application fee or bond requirement for wholesale dealers that only
operate vending machines.
22
|
|
Publication 20 (11/12)
Minimum cigarette You cannot sell cigarettes for less than the New York State or
prices New York City minimum prices (whichever apply). The following
resources provide information on minimum cigarette prices:
• Publication 509, Minimum Wholesale and Retail Cigarette Prices,
indicates the minimum prices for standard brands and standard
packages.
• Publication 508, Minimum Price List for Cigarettes(Sold by the
carton, 20 cigarettes per pack/10 packs per carton) ,may be used to
determine the minimum wholesale or retail cigarette selling prices for
standard packages of 20 cigarettes per pack, 10 packs per carton.
• Your business’s cigarette supplier.
• The Miscellaneous Business Tax Information Center at
(518) 457-5735.
Tobacco Escrow Under the Tobacco Escrow Funds Act, cigarette and roll-your-own (RYO)
Funds Act tobacco manufacturers, cigarette stamping agents, and distributors of RYO
tobacco must comply with certain requirements.
Cigarette and RYO tobacco manufacturers – Every manufacturer whose
cigarettes or RYO tobacco are sold for consumption in New York State
must issue a certification annually using Form CG-30, Certification of
Tobacco Master Settlement Agreement Status ,to all of the following:
• the Commissioner of Taxation and Finance,
• the Attorney General of New York State,
• every licensed cigarette agent who sells the manufacturers’ products in
New York State, and
• any distributor of the manufacturer’s RYO tobacco.
For more information, see Form CG-30-I, Instructions for Forms CG-30,
CG-30.1, and CG-30.2.
Cigarette stampingagents – A cigarette stamping agent maynot affix
stamps to a manufacturer’s cigarettes if the agent has not received
Form CG-30 from the manufacturer, or if the department advises the agent
that the manufacturer is in violation of section 1399-pp of the Public Health
Law or has filed a false certification. Cigarette stamping agents must
provide information regarding the brands of cigarettes stamped each month
using Form CG-5/6-ATT, Schedule B – Cigarette Packages Stamped
During the Month. For more information, see the instructions for
23
|
|
Publication 20 (11/12)
Form CG-5/6-ATT and TSB-M-01(7)M, Cigarette Manufacturer
Certifications and Prohibition Against the Stamping of Certain Cigarettes.
Distributors of tobacco products – If a distributor has not received
Form CG-30 from a manufacturer, the distributor may not sell that
manufacturer’s RYO tobacco in New York State.
Each month, distributors of tobacco products must provide certain
information on RYO cigarette tobacco using Form MT-203-ATT,
Information on Roll-Your-Own Cigarette Tobacco Manufactured or
Imported by a Distributor. For more information, see TSB-M-06(7)M,
Reporting Requirements for Distributors of Tobacco Products that Import
or Manufacture Roll-Your-Own Cigarette Tobacco, and the instructions for
Form MT-203-ATT.
Enforcement It is illegal for anyone engaged in the business of selling cigarettes to ship,
provisions for the or cause to be shipped, any cigarettes to a person in New York State unless
sale, shipment, and the recipient is:
possession of
cigarettes and tobacco • a licensed or registered cigarette agent, wholesale dealer, or retail
products in dealer;
New York State
• an export warehouse proprietor or a person operating a customs
bonded warehouse; or
• an officer, employee, or agent of the federal or New York State
government, or a political subdivision of either (acting in an official
capacity).
Additionally, a cigarette stamping agent may not affix, or cause to be
affixed, a New York State cigarette tax stamp to a package of cigarettes
unless the cigarettes have been certified and marked as fire standards
compliant, pursuant to section 156-c of the Executive Law.
For more information, see TSB-M-03(1)M, Enforcement Provisions
Regarding the Sale, Shipment, and Possession of Cigarettes and Tobacco
Products in New York State, and TSB-M-06(8.1)M, Clarification of Fire
Safety Provisions for Sales of Cigarettes as of August 16, 2007 .
Beverage New York’s Returnable Container Act (RCA), commonly referred to as the
Bottle Bill, requires every deposit initiator to collect a $.05 deposit on
container deposits
beverage containers containing less than one gallon of carbonated soft
drinks, beer, malt beverages, wine coolers, or water sold in New York.
A deposit initiator is the first bottler, distributor, dealer or agent to collect
the deposit on a beverage container sold in New York State. You’re a
deposit initiator if you:
24
|
|
Publication 20 (11/12)
• bottle beverages in beverage containers with an established deposit;
• distribute beverages in beverage containers with an established deposit
and you did not purchase the containers from a registered deposit
initiator;
• sell beverages in beverage containers and you did not purchase the
containers from a registered deposit initiator; or
• act as an agent on behalf of a registered deposit initiator.
A deposit initiator is required to electronically register with the department
using Online Services on the department’s Web site. The department will
electronically issue a registration certificate to you when your application is
received (the review of your application may take up to 25 days). Once the
registration certificate is issued, it is valid for at least three years, but may
be subject to renewal at the discretion of the department.
You must electronically file your beverage container tax reports quarterly
using the Beverage Container Web File service on the Tax Department’s
Web site.
For more information on the beverage container deposits, see
TSB-M-09(2)M, Registration and Filing Responsibilities for Beverage
Container Deposit Initiators, see the Tax Department’s Web site, or call
(518) 485-2889.
For information on the bottle bill, visit the New York State Department of
Environmental Conservation (DEC) Web site (www.dec.ny.gov).
Alcoholic You must register as a distributor of alcoholic beverages with the
beverages department before you:
• import or cause to be imported into New York State any alcoholic
beverage that is or will be offered for sale, or used for any commercial
purpose or, in the case of liquor, used for any purpose;
• produce, distill, manufacture, brew, compound, mix, or ferment any
alcoholic beverages within New York State for sale; or
• purchase warehouse receipts and cause the removal of any alcoholic
beverages stored in a warehouse in New York State.
For purposes of this section, alcoholic beverages include beer, cider, wine,
and liquor.
Note: You must be licensed by the New York State Liquor Authority
(under the Alcoholic Beverage Control Law) before your registration as a
distributor of alcoholic beverages will be approved.
25
|
|
Publication 20 (11/12)
New York City – New York City imposes an alcoholic beverages tax on
liquor containing more than 24% alcohol by volume, and on beer that is
sold or used in New York City.
Registrations, To register as a distributor, file Form TP-215, Application for Registration
licenses, and permits as a Distributor of Alcoholic Beverages. No registration fee is required to
apply to be a distributor of alcoholic beverages. You may be required to file
a bond or other acceptable security with the department either before or
after you register. The amount of the bond or other acceptable security will
be determined by the department. Once registered, you must file monthly
tax returns. However, cider distributers file annual returns, and certain beer
and wine distributers may apply to file annual returns. For more
information, see Form MT-38, Application for Annual Filing Status for
Certain Beer and Wine Manufacturers. For more information, contact the
New York State Tax Department Registration and Bond Unit at
(518) 591-3111.
Sales tax registration requirement – You must be registered for sales tax
purposes (see Sales tax registration on page 16) before the registration
described above will be approved. Sales tax registration is required even if
you will not actually collect or pay sales tax.
Other federal and New York State requirements – The New York State
Liquor Authority and the federal Alcohol and Tobacco Tax and Trade
Bureau also require certain permits and licenses before your business can
manufacture or distribute any alcoholic beverages. For application forms
and additional information, visit the New York State Liquor Authority’s
Web site (www.sla.ny.gov ) or call (518) 474-3114.
For federal requirements, visit the federal Alcohol and Tobacco Tax and
Trade Bureau Web site (www.ttb.gov) or call 1 877 882-3277.
Direct wine shipments The Alcoholic Beverages Control Law allows certain out-of-state wine
into New York State manufacturers to ship limited quantities of their wines directly to eligible
by out-of-state consumers in New York State.
wineries
The out-of-state wine manufacturer must be:
• licensed by the New York State Liquor Authority as a direct shipper,
• registered with the Tax Department for sales tax purposes, and
• registered with the Tax Department as a distributor of alcoholic
beverages.
For licensing information, call the New York State Liquor Authority at
(518) 474-3114.
26
|
|
Publication 20 (11/12)
For more tax information on direct wine shipments, see
TSB-M-05(6)M, (9)S, Tax information regarding direct wine shipments
into New York State by out-of-state wineries ,and TSB-M-09(6)M , Annual
Filing Option Available for Certain Wine Distributors.
Petroleum If you import, produce, or sell motor fuel (for example, gasoline), diesel
motor fuel (including #2 heating oil, #2 fuel oil, kerosene, and kero-jet
products
fuel), or residual petroleum products, you may have to register with the
department.
If you import, produce, or sell petroleum products, you may be required to
pay both the motor fuel and diesel motor fuel excise tax (Article 12-A) and
the petroleum business tax (Article 13-A). You may also be liable for
prepaid sales tax.
If you import, produce, or sell certain alternative fuels (for example, ethanol
or B20 biodiesel), see TSB-M-06(2)M, Excise Tax and Petroleum Business
Tax Exemptions for Certain Alternative Fuels Beginning
September 1, 2006, and TSB-M-06(2.1)M, Additional Information
Regarding B20 Fuel Under the Excise Tax and Petroleum Business Tax
(Articles 12-A and 13-A).
To apply for any of the petroleum product registrations described in the
following sections, file Form TP-650, Application for Registration under
Articles 12-A and 13-A, unless otherwise indicated.
Bonding requirement – You may be required to file a bond or other
acceptable security with the department before any of the registrations
described below can be issued. The amount of the bond or other acceptable
security may vary.
Contact the New York State Tax Department Registration and Bond Unit at
(518) 591-3111 for more information on the licenses and registrations
described in the sections below.
Sales tax registration requirement – You must be registered for sales tax
purposes (see Sales tax registration on page 16) before any of the
registrations or licenses described below will be approved. Sales tax
registration is required even if your business will not actually collect and
pay sales tax to the department.
Distributor of motor You must register as a distributor of motor fuel if you:
fuel
• import motor fuel into New York State (or cause it to be imported) for
use, sale, distribution, or storage within New York State; or
• produce, refine, manufacture, or compound motor fuel within
New York State.
27
|
|
Publication 20 (11/12)
The minimum amount of bond or other acceptable security is $50,000. Once
registered, you must file monthly tax returns.
Importing/exporting You must register as an importing/exporting transporter if you:
transporter
• transport motor fuel into New York State by barge, pipeline, truck,
railroad, or other means for use, distribution, storage, or sale in
New York State, or
• transport motor fuel that is being exported out of New York State.
The amount of the bond or other acceptable security is $2,000. Once
registered, you must file monthly transportation reports.
Terminal operator You must register as a terminal operator if you maintain or control a motor
fuel storage facility with a capacity of at least 50,000 gallons.
The amount of the bond or other acceptable security is $10,000. Once
registered, you must file monthly inventory reports.
Distributor of diesel You must register as a distributor of diesel motor fuelif you:
motor fuel
• import diesel motor fuel into New York State (or cause it to be
imported) for use, distribution, storage, or sale within New York State;
• produce, refine, manufacture, or compound diesel motor fuel in
New York State; or
• sell diesel motor fuel other than at retail directly into the fuel tank of a
motor vehicle.
The amount of the bond or other acceptable security will be determined by
the department. Once registered, you must file monthly tax returns.
Retailer of non- If you meet the conditions to register as a distributor, but you only plan to
highway diesel motor sell non-highway diesel motor fuel to consumers, you may register as a
fuel only retailer ofnon-highway diesel motor fuel only (RONDO).
As a RONDO you may not make a sale into a bulk storage tank equipped
with a nozzle capable of fueling a motor vehicle (for example, service
stations, truck stops, and construction sites), except for delivery at a farm
site for direct production by farming of tangible personal property for sale.
Distributor of kero-jet If you are a fixed-base operator that makes no sales of kero-jet fuel other
fuel only than the retail sale delivered directly into the fuel tank of an airplane for use
in that airplane from a fixed and permanent place at an airport in
New York State, you may register as a distributor of kero-jet fuel only.
28
|
|
Publication 20 (11/12)
The amount of the bond or other acceptable security will be determined by
the Tax Department.
Once registered, you must file monthly or quarterly tax returns.
Aviation fuel business Generally, you must register as an aviation fuel business if you import
kero-jet fuel into New York State in the fuel tanks of your aircraft, and you
are not otherwise registered as a distributor of diesel motor fuel or kero-jet
fuel only. No bond or other security is required. Once registered, you must
file monthly tax returns.
If you are an aircraft operator that is not an airline, you may be allowed to
file Form PT-351, Aircraft Fuel Consumption Tax Return. For more
information, see the instructions for Form PT-351.
Residual petroleum You must register as a residual petroleum product business if you:
product business
• import residual petroleum product (or cause it to be imported) for use,
distribution, storage, or sale in New York State;
• produce, refine, manufacture, or compound residual petroleum
products within New York State; or
• sell or use residual petroleum products within New York State, other
than the self-use of products which you purchased at retail.
The amount of the bond or other acceptable security will be determined by
the department. Once registered, you must file monthly tax returns.
Highway use and If you operate certain vehicles on the public highways of New York State,
you may be subject to the highway use tax (also referred to as the truck
fuel use taxes
mileage tax or TMT) and the fuel use tax (also referred to as the
International Fuel Tax Agreement or IFTA).
For additional information applicable to highway use tax and fuel use tax as
described in the sections below, see:
• Publication 538, A Guide to Highway Use Tax and Other New York
State Taxes for Carriers
• Publication 536, International Fuel Tax Agreement (IFTA) A Guide for
New York State Carriers
Highway use tax The highway use tax (HUT) is imposed on motor carriers operating certain
motor vehicles on New York State public highways (excluding toll-paid
portions of the New York State Thruway). The tax is based on mileage
traveled on New York State public highways and is computed at a rate
determined by the weight of the motor vehicle and the method that you
choose to report the tax.
29
|
|
Publication 20 (11/12)
• Gross weight method – You must register and pay for any truck,
tractor, or other self-propelled vehicle with a gross weight of more
than 18,000 pounds.
• Unloaded weight method – You must register and pay tax for any truck
with an unloaded weight of more than 8,000 pounds and any tractor
with an unloaded weight of more than 4,000 pounds.
You must use the same method for all your motor vehicles.
Carriers are required to obtain a certificate of registration and decal for each
vehicle subject to the highway use tax. There are various types of highway
use tax certificates of registration and decals that are issued based on the
nature of the operations of the vehicle and how quickly the credentials are
needed.
You may obtain and manage various operating credentials and registrations
over the Internet, including highway use tax registrations and decals, by
accessing One Stop Credentialing and Registration – OSCAR – (at
www.oscar.ny.gov).
You may also obtain certificates of registration and decals by:
• filing Form TMT-1, Application for Highway Use Tax (HUT) and
Automotive Fuel Carrier (AFC) Certificates of Registration (C of R)
and Decals, with the Tax Department; or
• contacting various permit services bureaus located throughout the
country.
You must file returns monthly, quarterly, or annually, based on your tax
liability. Most returns can be filed online using the Highway Use Tax Web
File service on the Tax Department Web site.
Fuel use tax The fuel use tax is imposed on the operation of qualified motor vehicles in
New York State. The purpose of the fuel use tax is to subject fuel purchased
without paying the New York State fuel taxes (whether purchased outside
the state or within New York State without tax) and used to operate
qualified motor vehicles on the state’s public highways to the same taxes
imposed on fuel purchased in-state.
A qualified motor vehicle is a motor vehicle, other than a recreational
vehicle, that has two axles and a gross vehicle weight or registered gross
vehicle weight of more than 26,000 pounds; or has three or more axles
regardless of weight; or is used in combination and the gross vehicle weight
of the combination is more than 26,000 pounds.
The fuel use tax is based on the number of gallons of fuel used by a
qualified motor vehicle operating on the public highways of
New York State, including the toll-paid portion of the New York State
30
|
|
Publication 20 (11/12)
Thruway. The number of gallons is multiplied by an aggregate rate that
consists of a fuel tax component, a sales tax component, and a petroleum
business tax component.
A credit against the fuel use tax is allowed for fuel that you purchase tax
paid in New York State, and placed into the fuel tank of a qualified motor
vehicle.
International Fuel Tax Agreement (IFTA) – New York State is a
participating member of IFTA. The agreement, which is in effect in most
states and Canadian provinces, simplifies the reporting of fuel taxes for
interstate and international carriers by allowing you to report to your base
jurisdiction the total amount of fuel taxes that you owe to all the various
IFTA member jurisdictions.
If you operate one or more qualified motor vehicles in New York State and
in one or more other IFTA jurisdictions, you must obtain an IFTA license
and obtain decals for each vehicle from your base jurisdiction. If your base
jurisdiction is New York State, use Form IFTA-1, New York State
International Fuel Tax Agreement (IFTA) License Application, to apply for
an IFTA license and decals. If you already have an IFTA license, you may
buy IFTA decals online at OSCAR or use Form IFTA-9, Application for
Additional Decals, Replacement Decal(s), or Duplicate License.
You must file returns quarterly based on your tax liability. Returns must be
filed online using the IFTA Web File service on the Tax Department Web
site.
If you are not required to be licensed under IFTA, and you operate qualified
motor vehicles on New York State public highways (including the
Thruway) that consume fuel purchased without New York taxes included,
you must file Form MT-903-FUT, Fuel Use Tax Return, to report and pay
your fuel use tax obligation.
Taxes for Any utility selling or furnishing utility services and any providers of
telecommunications services may be subject to tax on gross income or gross
furnishing utility
receipts from these services.
and
telecommunication If you sell or furnish the transportation, transmission, or distribution of gas,
services electricity, steam, water, or refrigeration, and you are subject to the
supervision of the Public Service Commission, see Form CT-186-P , Utility
Services Tax Return – Gross Income, and its instructions.
If you provide telecommunications services by the use of wires, cables,
fiber optics, lasers, microwaves, radio waves, satellites or similar media, or
any combination of these media, see Form CT-186-E, Telecommunications
Tax Return and Utility Services Tax Return, and its instructions.
31
|
|
Publication 20 (11/12)
If you sell utility services or telecommunications services and do business
in the Metropolitan Commuter Transportation District (MCTD), you must
also file and pay the metropolitan transportation business tax surcharge
(MTA surcharge) on gross receipts from sales of utility or
telecommunications services in the MCTD. Report the MTA surcharge on
Form CT-186-E.
The MCTD includes New York City (the counties of New York
(Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island)),
and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess,
and Westchester.
Waste tire If you sell new tires or sell vehicles with new tires within New York State,
you are required to collect a fee of $2.50 on each new tire sold within the
management fee
state. The fee applies to motor vehicle tires, including tires for cars, trucks,
trailers, farm and other tractors, motorcycles, all-terrain vehicles, and
limited use vehicles. All new tires included with the sale of a new or used
vehicle, including spare tires, are subject to the fee.
Sales of the following tires are not subject to the fee:
• used or recapped tires;
• mail-order, phone-order, or Internet sales where the tires are delivered
to the purchaser by the U.S. Postal Service or a common carrier; and
• tires sold solely for resale provided the subsequent retail sale within
New York State is subject to the fee.
You must file returns on a quarterly basis with the department and remit
$2.25 for each tire sold during the quarter. This allows you to retain
25 cents for each tire sold to help defray administrative costs.
For more information, see Form MT-170, Waste Tire Management Fee
Quarterly Return, Form MT-171, Waste Tire Management Fee Exempt
Purchase Certificate, and visit the Tax Department’s Web site.
New York City A tax of 50 cents per trip is imposed on every taxicab ride and hail vehicle
trip that starts in New York City and ends within the Metropolitan
taxicab and hail
Commuter Transportation District (MCTD). The MCTD includes
vehicle trip tax
New York City (the five counties of New York (Manhattan), Bronx, Kings
(Brooklyn), Queens, Richmond (Staten Island)), and the counties of
Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.
If you are licensed by the Taxicab and Limousine Commission of
New York City (TLC) to own and operate a medallion taxicab or to provide
hail vehicle trips, you must pay the tax. If you own or operate a medallion
taxicab and have designated an agent, the agent is jointly liable for the tax
32
|
|
Publication 20 (11/12)
on the trips occurring during the period that the designation is in effect and
the agent should pay the tax and file returns on behalf of the owner.
Medallion owners (or their agents) and hail bases must file returns online at
the Tax Department’s Web site on a quarterly basis and remit 50 cents for
each taxicab ride and hail vehicle trip subject to tax.
For more information see the Tax Department’s Web site and
TSB-M-12(3)M,7(S), Tax on Hail Vehicle Trips in the Metropolitan
Commuter Transportation District Beginning June 1, 2012.
Note: As of the date this publication was issued, no vehicles were
authorized as hail vehicles by the TLC. See the TLC Web site for the latest
information (www.nyc.gov/tlc).
Boxing and If you are a promoter of professional or amateur boxing, sparring, or
wrestling exhibitions or matches, you must report and pay the boxing and
wrestling
wrestling exhibitions gross receipts tax. For additional information on this
exhibitions tax
tax, see the instructions for Form MT-160, Boxing and Wrestling
Exhibitions Tax Return.
Every promoter holding boxing or wrestling events in New York State must
register with the New York State Athletic Commission prior to holding an
event and submit event-specific reports. Refer to the New York State
Athletic Commission’s Web site (www.dos.ny.gov/athletic/index.html) for
additional information.
VII. Purchasing or acquiring a business or its assets – Caution
Sales tax If you are purchasing or otherwise acquiring some or all of the business
information assets of an existing business that is registered or required to be
registered for sales tax purposes, other than in the ordinary course of
the seller’s business, you may be held personally liable for any sales and
use taxes determined to be due from the seller unless you comply with
the notification and other requirements applicable to these business
asset purchases. You may be held liable for the amount of the seller’s
liability for unpaid sales and use taxes up to the sales price or fair market
value of the assets you purchased or acquired, whichever is greater.
These requirements apply whether the assets you are acquiring are tangible
personal property, intangible property, or real property.
The sale, transfer, or assignment of business assets in whole or in part, other
than in the ordinary course of business, by a person required to collect and
remit sales tax to the Tax Department is called a bulk sale transaction.
33
|
|
Publication 20 (11/12)
As the purchaser, transferee, or assignee (purchaser) in a bulk sale
transaction, you will not be held liable for the seller’s unpaid sales and use
tax liability if you comply with all the following requirements.
1. Notify the Tax Department – You must notify the department of
the pending bulk sale transaction by filing Form AU-196.10,
Notification of Sale, Transfer or Assignment in Bulk, at least 10
days before paying for or taking possession of any business
assets, whichever occurs first.
You must send Form AU-196.10 by registered mail to the address
given on the form. While the seller is supposed to advise the
purchaser of this notification requirement, the failure of the seller to
give this notification does not relieve the purchaser of the obligation
to timely notify the Tax Department of the planned bulk purchase,
nor does it relieve the purchaser of any liability for the seller’s
th
unpaid sales and use taxes. When the 10 day falls on a Saturday,
Sunday or legal holiday in New York, notice will be timely if given
on the next succeeding day that is not a Saturday, Sunday or legal
holiday in New York.
2. Withhold consideration payable to the seller until authorized to
release it by the Tax Department – Within 5 business days of
receiving a timely filed Form AU-196.10, the department will advise
you if it is possible that the seller has any unpaid sales and use taxes.
If the seller has unpaid sales or use taxes or is selected for additional
review or audit, the department will send you Form AU-196.2,
Notice of Claim to Purchaser, which will advise you not to release
any consideration to the seller until authorized by the department.
If the seller does not have any unpaid sales or use taxes and if an
additional review or audit is not necessary, the department will send
you Form AU-197.1, Purchaser’s and/or Escrow Agent’s Release-
Bulk Sale, which allows you to turn over any consideration to the
seller.
If the Tax Department:
• fails to issue the purchaser Form AU-196.2 within 5 business days
after receipt of a properly completed and timely filed AU-196.10,
or
• incorrectly advises the purchaser that the seller has no outstanding
liability by sending Form AU-197.1,
the purchaser will not be held liable for any of the seller's unpaid sales and
use taxes and may pay the seller the full purchase price.
34
|
|
Publication 20 (11/12)
Note: Whether a purchaser receives Form AU-197.1 or AU-196.2 from the
Tax Department, the assets purchased from the seller may still be subject to
the department’s liens if there are outstanding warrants or judgments
against the seller for past unpaid sales and use taxes.
For purposes of the department’s obligation to respond within 5 business
days, the date of receipt of Form AU-196.10 by the department will be the
date it was actually delivered to the Bulk Sales Unit of the Audit Division.
However, the date of receipt will not be earlier than 10 days before the
scheduled date of sale or the actual date of sale, whichever is later. The
actual date of sale is the date of payment or the date the purchaser takes
possession of the assets acquired, whichever is earlier.
If you receive Form AU-197.1, you may pay the seller the full purchase
price. The department will not hold you liable for any of the seller’s unpaid
sales and use taxes, although the assets you purchased may still be subject
to the department’s liens if there are outstanding warrants or judgments.
If you receive Form AU-196.2, you will be advised not to pay the seller
until the department completes its review of the seller’s sales tax account.
Within 90 days of the receipt of Form AU-196.10, the department must
notify you (and the seller) of the actual amount of sales and use taxes due
from the seller for which you can be held liable on account of the bulk sale.
Upon receipt of Form AU-196.2, you may wish to consult a tax practitioner
about the best course of action to take.
For more information on bulk sale transactions, see TSB-M-83(6)S,
Guidelines for Bulk Sales Transactions.
In addition to your obligations and requirements with respect to sales
and use taxes accrued and determined to be due to the department
from the seller, you are also responsible for paying the sales tax due, if
any, on your purchase of any tangible personal property or taxable
services in the bulk sale transaction. Sales tax is not imposed on the sale
of real property or intangible assets, such as goodwill.
If you have any questions about the bulk sale requirements, call the Tax
Department at (518) 937-9400. Please have either the assigned bulk sale
case number or the name and the sales tax identification number of the
seller or the purchaser available when you call.
Sales tax registration requirement – If, as the owner of a new business,
you will be making taxable sales, renting hotel or motel rooms, making
admission charges, or issuing or accepting certain exemption certificates,
you must register for sales tax purposes. For more information, see the Tax
Department Web site and Sales tax registration on page 16.
35
|
|
Publication 20 (11/12)
Bulk sale transactions Example 1: Corporation A, a person required to collect sales tax, sells its
(examples) business assets to Corporation B. The sale by Corporation A is a bulk sale
transaction.
Example 2: Corporation A, a person required to collect sales tax, transfers
all of its business assets to Corporation B in exchange for stock in
Corporation B. The transfer of Corporation A’s assets to Corporation B is a
bulk sale transaction.
Example 3: Corporation A purchases all the issued and outstanding stock
of Corporation B, a person required to collect sales tax. Corporation A and
Corporation B will continue to exist as separate legal entities. Since
Corporation A purchased stock, not assets, and since Corporation B retains
its business assets, this is not a bulk sale transaction.
Example 4: Corporation A, a person required to collect sales tax, sells its
entire inventory, which is purchased by Corporation B for resale. The sale
by Corporation A is a bulk sale transaction.
Example 5: Mr. Smith, a person required to collect sales tax, makes a gift
of all of his business assets to another person. This transfer by Mr. Smith is
a bulk sale transaction.
Real estate If you are acquiring a business that has an interest in real property, such as a
deed or a lease, the transaction may be subject to the real estate transfer tax.
transfer tax
In addition, the tax applies:
information
1. when a person or group of persons acting in concert acquires a
controlling interest in a partnership, corporation, or other entity with
an interest in real property, or
2. when a person or group of persons acting in concert transfers a
controlling interest in a partnership, corporation, or other entity with
an interest in real property.
Caution: The tax may apply when you acquire a minority interest that is
part of a larger transaction, or when the seller transfers a minority interest
that is part of a larger transaction.
Controlling interest means:
1. in the case of a corporation, either 50% or more of the total
combined voting power of all classes of stock of the corporation, or
50% or more of the capital, profits, or beneficial interest in the
voting stock of the corporation; and
36
|
|
Publication 20 (11/12)
2. in the case of a partnership, association, trust, or other entity, 50% or
more of the capital, profits, or beneficial interest in the partnership,
association, trust, or other entity.
The seller of the real property is responsible for paying the tax. However, if
the seller fails to pay the tax or is exempt, the purchaser must pay the tax.
For more information, see Form TP-584, Combined Real Estate Transfer
Tax Return, Credit Line Mortgage Certificate, and Certification of
Exemption from the Payment of Estimated Personal Income Tax, and the
instructions for Form TP-584.
Note: If you are purchasing a business that owns an interest in real property
from a nonresident individual, estate, or trust, then the transferor/seller may
be required to complete Form IT-2663, Nonresident Real Property
Estimated Income Tax Payment Form, and pay the estimated personal
income tax due, if any, before you may have the deed recorded. For more
information, see the instructions for Form IT-2663.
Licenses or Any license or registration that is required for sales tax or any of the
miscellaneous taxes (see Miscellaneous taxes and fees starting on page 19)
registrations
may not be transferred to you or your business from another individual or
business, even when you purchase an existing business. You must apply for
new registration forms for your business. For additional information on
license or registration requirements, contact the New York State Tax
Department Registration and Bond Unit at (518) 591-3111.
VIII. Business incentives
New York State offers a number of significant tax incentives designed to
enhance economic development, stimulate capital investment, and
encourage revitalization of distressed areas.
The broad range of tax credits available to businesses underscores the
state’s commitment to attract and foster growth in the business community.
These credits provide significant tax relief to businesses to encourage job
creation and to ensure competitiveness in a global marketplace. For
additional information on New York State tax credits, visit the Tax
Department Web site.
IX. Additional information
Recordkeeping for As the owner of a business, you must keep records that enable you to
prepare complete and accurate tax returns for that business. You must also
small businesses
keep documents, such as canceled checks, paid invoices, or both, to back up
your records. These records are used to prepare complete and accurate tax
returns for your business.
37
|
|
Publication 20 (11/12)
Generally, you may retain any required records in either hard-copy or
electronic format (or both). These records should be maintained in a manner
so that one period may be compared with another.
Sales and use tax If you must register for sales and use tax purposes, or if your business has
recordkeeping voluntarily registered for sales tax purposes, you must keep detailed records
of all sales by jurisdiction. You must also maintain a method of associating
an exempt sale to a particular purchaser with the exemption certificate you
have on file for that sale or purchaser. If you issue exemption certificates
when you make purchases, you must maintain records of these purchases,
substantiating exempt use.
For specific recordkeeping requirements for sales and use tax, see
Publication 750, A Guide to Sales Tax in New York State, and Tax Bulletin
Recordkeeping Requirements for Sales Tax Vendors (TB-ST-770). To look
up sales and use tax rates by jurisdiction online, visit the Tax Department
Web site and access Online Services.
Tax year For federal tax purposes, income and corporation franchise taxes are based
on a 12-month period called a federal tax year. There are two kinds of tax
years.
1) A calendar tax year is 12 consecutive months beginning January 1
and ending December 31.
2) A fiscal tax yearis 12 consecutive months ending on the last day of
any month except December (including a 52 – 53 week year).
For New York State income and corporation franchise tax purposes, you
must use the same tax year as you use for federal tax purposes.
Your federal tax year is established when you file the first federal tax return
for your business. You must continue to use this tax year unless you receive
approval from the IRS to change the tax year.
Note: The annual reporting period for sales tax purposes runs from each
March 1 through the last day of the following February, which may differ
from the tax year of a business as described above.
Accounting methods An accounting method is a set of rules used to determine when and how the
for income and income and expenses of your business are recorded.
corporate franchise
taxes You must use the same method of accounting for New York income tax
and corporate franchise tax purposes that your business uses for federal tax
purposes. The accounting method for your business is established when you
file the first federal income tax return for your business. You must continue
to use this accounting method unless you have received approval from the
IRS to change it.
38
|
|
Publication 20 (11/12)
You may use any of the following accounting methods:
• cash method;
• accrual method;
• special methods of accounting for certain items of income and
expenses; or
• combination method, using elements of both the cash and accrual
methods.
The accounting method you use will generally be acceptable if the method
is consistently applied, in accordance with generally accepted accounting
principles, and clearly reflects the business’s income. If you operate more
than one business, you may use different accounting methods for each. You
must keep complete records and separate books for each business.
If you are using the cash method for your business, report income when the
money is actually or constructively received and report expenses when the
bills are actually paid. If you are using the accrual method for your
business, report income when it is earned (whether or not it has been
received) and report expenses when they are incurred (regardless of when
they are paid).
For more information on the cash method, the accrual method, and other
accounting methods, visit the IRS Web site (www.irs.gov) and refer to IRS
Publication 538, Accounting Periods and Methods.
Accounting methods Generally, sales and use taxes are remitted to New York State with the sales
for sales and use tax tax return filed for the period in which the sales occur, regardless of when
payment is received (the accrual method).
However, certain lumber dealers and other materialmen may elect to remit
sales tax on the cash basis (reporting the sale in the period that they actually
receive payment for certain taxable sales). For more information, see
Form ST-112, Annual Application for a Materialman to Remit Sales Tax
Under the Pay-When-Paid Option ,and TSB-M-99(2)S, Materialmen - Pay
When Paid.
In addition, special rules apply to hotel room remarketers. For more
information, see TSB-M-12(8)S, 2012 Budget Legislation Affecting the
Sales Tax Obligations of Hotel Room Remarketers.
Bookkeeping systems You may use one of two bookkeeping systems: single-entry or
double-entry. The single-entry system is easier to keep; the double-entry
system, although more complex, assures better accuracy and control.
39
|
|
Publication 20 (11/12)
1) Single-entry system. A single-entry system is based on the income
statement (profit or loss statement). It is a simple system that records
the flow of income and expenses using a daily summary of cash
receipts and monthly summaries of receipts and disbursements.
2) Double-entry system. A double-entry system uses journals and
ledgers. Transactions are first entered in a journal and then posted to
ledger accounts. These accounts show income, expenses, assets,
liabilities, and net worth. At the end of an accounting period, you
will be able to prepare a profit and loss statement reflecting current
operations, and a balance sheet showing the overall financial
position of your business.
For more information, see IRS Publication 583, Starting a Business and
Keeping Records .In addition, office supply stores sell a variety of complete
bookkeeping systems, and also many recordkeeping forms and other
materials that may help you.
You must determine what kind of system will be most comfortable for you
and best suited to your business needs. You may want professional advice
in establishing a system for your business.
Privacy and The Tax Law contains strict secrecy provisions to protect the confidentiality
of tax returns and tax return information. Consequently, you must give
confidentiality
specific written authorization to a practitioner, paid preparer, or other
representative before he or she is allowed to represent you before the Tax
Department or the Division of Tax Appeals, or before he or she is given
access to the confidential tax information of your business. There are
various levels of authorization your business can give.
Power of attorney A power of attorney is evidence that a practitioner or other person may act
on your behalf. The power of attorney must contain explicit authorization
for your representative to act for your business, and must be properly
completed and signed.
The department prefers that practitioners use department power of attorney
(POA) forms, such as Form POA-1, Power of Attorney. However, the
department will accept other forms if they contain all the required
information. Form POA-1 may be used for New York State and/or
New York City tax matters. However, a separate copy of the POA must be
filed with each agency you are appearing before (e.g., NYS Tax
Department, NYC Department of Finance, NYS Tax Appeals Tribunal, or
NYC Tax Appeals Tribunal).
For more information on powers of attorney, including the most current
version of Form POA-1, visit the Tax Department Web site.
40
|
|
Publication 20 (11/12)
Tax information You can authorize the department to release specific items of tax
authorization information to your appointee without a power of attorney. However, the
authorization does not allow your appointee to act on your behalf.
File Form DTF-280, Tax Information Authorization, to allow your
appointee to communicate with the department, verbally or in writing,
regarding specific confidential tax information.
Third-party designee You can authorize any person (third-party designee) you choose to discuss
certain current tax returns with the department. To authorize a third-party
designee, check the Yes box in the Third-party designee area of your tax
return, if applicable, and enter the information requested.
If you mark the Yes box, you are authorizing the department to discuss with
your designee any questions that arise during the processing of the return
for your business. You are also authorizing the designee to:
• give the department any information that is missing from the return;
• call the department for information about the processing of the return
or the status of a refund or payment(s); and
• respond to certain department notices that your business shares with
the designee about math errors, offsets, and return preparation. The
department will not send notices to the designee.
You are not authorizing the designee to receive any refund check, bind your
business to anything (including additional tax liability), or otherwise
represent your business before the department. If you want the designee to
perform those services for you, you must file a power of attorney.
E-ZRep E-ZRep Form TR-2000, Tax Information Access and Transaction
Form TR-2000, Tax Authorization, allows your tax professional to:
Information Access
and Transaction •access and receive confidential information about your business; and
Authorization
•conduct transactions on your behalf through a Tax Professional Online
Services account.
See the Tax Department Web site and Form TR-2000.1, E-ZRep Tax
Information Access and Transaction Authorization Information Page, for a
complete list of online services that you can authorize your tax professional
to use on your behalf through a completed E-ZRep Form TR-2000.
Online Services The Online Services section of the Tax Department Web siteoffers secure
and convenient access to a variety of tax services. Access is available 24
hours a day, 7 days a week (excluding scheduled maintenance). Once
41
|
|
Publication 20 (11/12)
registered you can access available account information and services for
your own business.
The Online Services section allows you to:
• Pay estimated income tax.
• View and reconcile estimated tax accounts.
• View and pay tax bills (all taxes).
• Web File for sales, withholding, corporation, Metropolitan Commuter
Transportation Mobility (MCTMT), and New York City taxicab and
hail vehicle trip taxes.
• File annual information returns for motor vehicle insurers, franchisors,
and alcoholic beverage wholesalers.
• Register and file for beverage container tax.
• Upload a wage reporting file.
For more information and services, visit the Tax Department Web site and
access Online Services.
Change in your The Tax Department maintains and updates the various tax records
associated with each business in New York State.
business
information
You must file Form DTF-95, Business Tax Account Update, with the
department if at any time while it is in operation your business changes its:
• name;
• employer identification number (EIN);
• mailing address;
• location address;
• telephone number or fax number; or
• owner, officer, or responsible person information, etc.
You may report an address change or a change to your telephone, fax
number, or the “doing business as” name through your Online Services
account on our Web site or by calling the appropriate business tax phone
number located on our Web site. If you are only reporting address changes,
you may also use Form DTF-96, Report of Address Change for Business
Tax Accounts.
These forms allow us to properly update our records for your business and,
if applicable for sales tax purposes, send you a revised Certificate of
Authority for your business.
If you are required to collect sales and use taxes and you change your
organizational structure (for example, sole proprietorship to corporation),
you must register online as a new business. You must also file a final sales
tax return for your old business and surrender its sales tax Certificate of
42
|
|
Publication 20 (11/12)
Authority. For more information on filing a final sales tax return, see
Terminating business on page 18.
Permits and As a prospective owner of a new business or expanding business, you
licenses should be aware of permits and licenses that you may need. New York
Business Express provides specific information on New York’s
requirements for a business and allows you to apply for certain business
licenses. For more information visit the Web site or call (518) 474-8275.
You may also be required to obtain local permits and licenses in the county,
city, town, or village where your business is located and where it will be
transacting business. You should contact these local authorities before you
begin your business. Contact numbers for New York City can be found
starting on page 46 of this guide.
43
|
|
Publication 20 (11/12)
X. New York State assistance
Department of Taxation and Finance Personal Income Tax Information Center
Visit our Web site (www.tax.ny.gov) for the most For information on filing New York State
up-to-date tax information. Additionally, you can personal income tax returns call (518) 457-5181.
register with Online Services for convenient access
to a variety of tax services. Text Telephone (TTY) Hotline (for persons
with hearing and speech disabilities using a
Business Tax Information TTY): If you have access to a TTY, contact us at
(518) 485-5082. If you do not own a TTY, check
• Corporation tax – (518) 485-6027. with independent living centers or community
action programs to find out where machines are
available for public use.
• Corporation dissolution – (518) 485-2639.
• Sales tax – (518) 485-2889. Bulk Sales Unit
For important sales tax information for those
• Withholding tax – (518) 485-6654. purchasing or acquiring a business or the assets of
a business, call (518) 937-9400.
• Miscellaneous business tax information –
(518) 457-5735. Forms and publications
To order Tax Department forms and publications,
• Registration and Bond Unit – For information call (518) 457-5431.
applicable to licenses and registration for
cigarettes and tobacco products, call
(518) 591-3111.
• Real estate transfer tax and mortgage
recording tax – (518) 457-8637.
• Metropolitan commuter transportation
mobility tax (MCTMT) – (518) 485-2392.
New Hire Reporting
Visit the New York New Hire Web site
(http://www.nynewhire.com/#/login), or call
(518) 320-1079
44
|
|
Publication 20 (11/12)
Department of Labor
Department of State Contact the Department of Labor for information
The Department of State provides information on regarding unemployment insurance. Visit their
forming corporations, and licensing and Web site (www.labor.ny.gov) or call: toll free
registration requirements for various types of 1 888 899-8810 or (518) 457-4179.
businesses. It also provides information to foreign
corporations who want to be authorized to do Empire State Development
business in New York State. Contact Empire State Development for
information regarding business opportunities and
Visit their Web site (www.dos.ny.gov) or call: tax and financial incentives in New York State.
(518) 474-4429 or (212) 417-5747. Visit their Web site (www.empire.state.ny.us) or
call: 1 800 STATE NY or 1 800 782-8369.
State Liquor Authority
The State Liquor Authority provides information Department of Health
and application forms for permits and licenses to Contact the Department of Health for information
distribute any alcoholic beverages. regarding cigarette and tobacco sales
requirements and restrictions. Visit their Web site
Visit their Web site (www.sla.ny.gov) or call (www.health.ny.gov) or call:
(518) 474-3114.
Tobacco Control Unit
New York State Insurance Fund (518) 474-1515
Contact the State Insurance Fund for information
regarding workers’ compensation and disability Center forEnvironmental Health
insurance. Visit their Web site (www.nysif.com) or (518) 402-7600
call 1 888 875-5790.
The NYS License Center
Visit New York Business Express if you are
starting a new business or expanding your
current business. This site will help you find the
New York State business permits you may need.
45
|
|
Publication 20 (11/12)
XI.New York City (NYC) assistance
General information
Visit New York City’s official Web site
(www.nyc.gov) or call New York City’s
information number for all New York City
agencies and services.
Dial 311 from within the city or call
(212) NEW YORK (639-9675) if you are
outside the five boroughs.
TTY service is also available by dialing
(212) 504-4115.
NYC Department of Finance
The NYC Department of Finance administers
the general corporation and unincorporated
business taxes (including partnerships and
limited liability companies) and excise taxes. It
assesses and collects real property taxes on all
properties (residential and commercial) in the
five boroughs.
For information on all NYC Department of
Finance functions, legal rulings, property tax
exemptions and applications (NYC residents
only), and to use the look-up for personal
property information and payments, etc., visit
their Web site (www.nyc.gov/html/dof).
NYC Department of Health
The NYC Department of Health issues permits
pertaining to food-related licenses including
food establishments and mobile vendors.
Visit their Web site (www.nyc.gov/html/doh).
46
|
|
Publication 20 (11/12)
XII. Federal assistance
Internal Revenue Service (IRS) Federal Bureau of Alcohol, Tobacco,
Visit their Web site (www.irs.gov) or call: Firearms and Explosives
Visit their Web site (www.atf.gov) or call:
Forms line
1 800 829-3676 Albany area (518) 431-4188
Buffalo area (716) 853-5070
Business and specialty tax line New York City area (646) 335-9000
1 800 829-4933 Syracuse area (315) 448-0889
TDD service is available at 1 800 829-4059
U.S. Small Business Administration
U.S. Citizenship and Immigration The U.S. Small Business Administration,
Services (USCIS) established in 1953, provides financial, technical,
For general information, visit their Web site and management assistance to help Americans start,
(www.uscis.gov) or call toll free 1 800 375-5283. run, and grow their businesses. Visit their Web site
TDD service is available at 1 800 767-1833. (www.sba.gov) or call 1 800 827-5722.
Alcohol and Tobacco Tax and Trade
Bureau
Visit their Web site (www.ttb.gov) or call toll free
1 877 882-3277.
47
|
|
Publication 20
(11/12)
Need help?
Text Telephone (TTY) Hotline (for persons with
Visit our Web site at www.tax.ny.gov hearing and speech disabilities using a TTY):
• get information and manage your taxes online If you have access to a TTY, contact us at
• check for new online services and features (518) 485-5082. If you do not own a TTY, check
with independent living centers or community
action programs to find out where machines are
Telephone assistance available for public use.
Personal Income Tax Information Center: (518) 457-5181 Persons with disabilities: In compliance with the
Corporation Tax Information Center: (518) 485-6027 Americans with Disabilities Act, we will ensure
that our lobbies, offices, meeting rooms, and
Sales Tax Information Center: (518) 485-2889 other facilities are accessible to persons with
Withholding Tax Information Center: (518) 485-6654 disabilities. If you have questions about special
accommodations for persons with disabilities,
Miscellaneous Tax Information Center: (518) 457-5735 call the information center.
To order forms and publications: (518) 457-5431
|