NYS Sales Tax for Household Movers and Warehouses

Welcome to the latest installment of our monthly blog “What are the rules for NYS Sales tax for my profession?”  

Every month we are highlighting another industry with a few of the broad guidelines to follow!  Our hope is not only to provide helpful information for the business owners but the consumers as well!

This month’s industry is:

 Household Movers and Warehouses

There are several services provided by Household Movers and Warehouses.  

1. Storage of permanent containers  

This refers to property stored at a facility by the storage provider for a period of time.   It does not refer to property that is stored temporarily between moves.   This storage is taxable with conditions. When these storage services are provided within NYS they are taxable.  The taxability depends on where the storage provider receives possession of the property to be stored.  If the storage provider takes possession in NYS (even if it is physically stored outside the state) then the service is taxable. Any labor, delivery or pickup charges associated with this storage is also taxable.  The provider must charge sales tax based on the jurisdiction where the property is picked up – NOT stored.  It can be picked up in NY but stored in any other state and would still be taxable. 

2. Sale of Storage Services vs. Rental of Real Property

Charges for the rental or lease of property used for storage are not subject to sales tax.  It is a lease if the tenant contracts for an amount of footage in a specific location, has unlimited control of access to the space, is allowed to supply racks etc. for their use of the space and the owner of the facility does not provide any additional services.  In order to show exclusive use of the space there would be a lock on the space under control of the tenant.  If the space is not under the control of the tenant and the facility provides additional services such as handling, storing or receiving the property then that is a taxable service as long as the tenant is not present at the time of service.  If tenant is present then it is deemed not taxable. 

3. Portable Storage and Moving Containers

If you rent a portable storage container to be used on your personal property located in NYS it is taxable.  The charges for the delivery of the empty container and the pick- up of the container when it is done being used is part of the rental charge subject to sales tax.

4. Moving Services

Moving Services include moving household goods to and from any destination.  Moving your office is treated the same as a household move.  These moves, whether local, interstate or international, are not subject to sales tax.  

This is just a brief overview of the sales tax laws regarding movers.  Feel free to give our office a call for more information.  Happy Moving!

By Christine A. Murphy

Received a Tax Notice?

I Got a Tax Notice – Now What?!

Every year, the number of notices sent out by both federal and state tax authorities seems to increase.  The sight of that envelope can send shivers down your spine, but don’t panic!

First, if you had a CPA prepare your taxes, ask them to review the notice. Your CPA can let you know what the taxing authority is looking for and what steps, if any, you need to take.

Next, submit the information requested by the date provided in the letter.  Never let the deadline pass without contacting the sender, as your account may be adversely adjusted or your refund may be delayed.

There are many reasons that you may receive a notice.  As identity theft is on the rise, we are seeing more letters that request information from the taxpayer in an effort to confirm the information provided in the tax return is correct and that the return has indeed been filed by the taxpayer before a refund is issued.

Most importantly, never ignore a notice.   Take action immediately and use your CPA as a resource, we are here to help you!

Honorine M. Campisi, CPA

NYS Sales Tax For Beauty Salons and Barbershops

Welcome to the latest installment of our new monthly blog – 

“What are the rules for NYS Sales tax for my profession?”

Every month we will highlight another industry with a few of the broad guidelines to follow!  Our hope is not only to provide helpful information for the business owners but the consumers as well!

This month’s industry is:

                                                      Beauty Salons and Barbershops

Sales of beauty salon and barbershop services are not taxable.  Examples of these services are haircuts and colors, blow drying, hair extensions, hair restoration, etc.

If your shop is located in NYC the rules are different.   The services are exempt from NYS sales tax but not local NYC sales tax. They would be subject to 4.875% tax.  There is one exception – Hair restoration performed by a licensed physician is not taxable regardless of where the business is located.  

Does your shop sell shampoos, conditioners or other styling products directly to the consumer?  The sale of those products are taxable.  There is an exception here as well – the sale of dandruff preparations or a hair regrowth treatment used by those who have thinning or hair loss are not taxable. 

As a shop owner if you purchase shampoos, conditioners or other styling products for resale you will not pay sales tax.  You must have the appropriate ST-120 Resale Certificate.  If the products are not used for resale but rather for use in your shop then you are required to pay sales tax.  

The purchase of all equipment used in the shop are subject to sales tax.  Types of equipment included are scissors, combs, brushes, etc.

If you rent space from a shop you are not required to pay sales tax on the rental of that space.

Remember that this is just a broad guideline and more research might be necessary for more complicated issues.