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Wednesday, May 22, 2019

Sales Tax: Admission Charges to a Place of Amusement


Welcome to the latest installment of our blog “What are the rules for NYS Sales tax for my profession?” In this blog we are highlighting another industry with a few of the broad guidelines to follow! Our hope is to not only provide helpful information for the business owners, but the consumers as well!

This blog focuses on Admission Charges to a Place of Amusement.

An admission charge is any amount that is paid to gain entry to any place of amusement. This includes cover charges, service charges, and any other charges to entertainment. A place of amusement is any facility where entertainment, amusement, or sports are provided.

Taxable admission charges are subject to a state sales tax of 4% and local sales tax based on the location of the place of amusement.

Examples of taxable admission charges are as follows:
  •       Professional or college sporting events
  •          Amusement parks
  •          Beaches
  •         Museums, zoos, and aquariums

Examples of nontaxable admission charges are as follows:
  •          Motion picture theaters,
  •          Live dramatic, choreographic, or musical arts performances
  •          Live circus performances


Season tickets to taxable events are taxed on the total selling price of the ticket regardless of the price for admission to each event.

Box seats are taxable based on the amount for which a similar box or seat is sold for each taxable performance or event.

This is just a brief overview of the sales tax laws regarding admission charges to a place of amusement. Feel free to give our office a call for more information.

By Renee Greenspan

Wednesday, May 8, 2019

Is Your Paycheck Withholding Enough?



Is Your Paycheck Withholding Enough?


Tax season is over for most and the results were hard to swallow for some.  If you are one of the taxpayers that had a large tax bill for 2018, this post is for you.

There were several changes in play that resulted in the unexpected tax bill that many taxpayers faced this year.  The tax law changes that the TCJA brought, reduced deductions for many and eliminated exemptions for all.  Further compounding the problem was the change to federal withholding tables that employers use to calculate how much tax to withhold from your paycheck each pay period.  The amounts required to be taken from your check decreased and resulted in less taxes credited to filers at tax time.

The fix for 2019?   Call your CPA and ask them to review your paystubs for changes you can make to withholding now.  You will still have 6 months of paychecks to reduce next year’s tax bill.

Honorine M. Campisi, CPA




Wednesday, April 24, 2019

Hotel and Motel Occupancy




Welcome to the latest installment of our blog “What are the rules for NYS Sales tax for my profession?”  In this blog we are highlighting another industry with a few of the broad guidelines to follow!  Our hope is to not only provide helpful information for the business owners, but the consumers as well!

This blog focuses on Hotel and Motel Occupancy.

The term hotel includes: hotels, motels, inns, and bed and breakfast establishments.

Hotel occupancy is the use, or right to use, a room in a hotel.  The room rate, that everyone hates to pay, is the amount that guests must pay to stay in the hotel room.  The room rate is taxable at the full state and local sales tax rate.

If you stay in a hotel in New York City there is an additional hotel unit fee that hotels must charge. The hotel unit fee is an extra $1.50 per unit per day, in addition to state and local sales tax.  This fee is separately stated on the invoice that customers receive.  Certain localities charge a bed tax, which is also shown separately on the customer's invoice.
 
There are certain charges that do not require sales tax to be collected.  These charges are as follows:
  •  Cancellation fees are not taxable because the customer never has the right to occupy the room.
  • Hotel guests that are permanent residents do not have to pay sales tax on their room rates.  A permanent resident is when a guest must stay in the hotel for at least 90 consecutive days without interruption.
  • A complimentary room does not require any sales tax due.  This is because the hotel is allowing the guest to stay in a room for no charge.
This is just a brief overview of the sales tax laws regarding hotel and motel occupancy.  Feel free to give our office a call for more information.

By Renee Greenspan