N.Y. Tax Law 1106 – Transitional provisions
§ 1106. Transitional provisions. (a) The taxes imposed under subdivisions (a), (c) and (d) of section eleven hundred five shall be paid upon all sales made and services rendered on or after August first, nineteen hundred sixty-five although made on or rendered under a prior contract, except as provided in section eleven hundred nineteen, and except that a delivery or transfer of possession of tangible personal property made after said date pursuant to an agreement for the sale of said property made before April first, nineteen hundred sixty-five shall not be subject to tax if: (1) such agreement for the sale of said property was made in writing, (2) the particular item or items of property so sold or agreed to be sold were segregated, before April first, nineteen hundred sixty-five, from any other similar property in the possession of the vendor and identified as having been appropriated to such sale or agreement of sale, and (3) the purchaser, before August first, nineteen hundred sixty-five shall have paid to the vendor not less than ten percent of the sale price of said property.
Terms Used In N.Y. Tax Law 1106
- Article: means a prose composition, including commentaries, reviews, editorials, op-eds, letters to the editor, and reader comments on articles. See N.Y. Tax Law 1101
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- person: includes an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of the foregoing. See N.Y. Tax Law 1101
- Personal property: All property that is not real property.
- vendor: includes :
(A) A person making sales of tangible personal property or services, the receipts from which are taxed by this article;
(B) A person maintaining a place of business in the state and making sales, whether at such place of business or elsewhere, to persons within the state of tangible personal property or services, the use of which is taxed by this article;
(C) A person who solicits business either:
(I) by employees, independent contractors, agents or other representatives; or
(II) by distribution of catalogs or other advertising matter, without regard to whether such distribution is the result of regular or systematic solicitation, if such person has some additional connection with the state which satisfies the nexus requirement of the United States constitution; and by reason thereof makes sales to persons within the state of tangible personal property or services, the use of which is taxed by this article;
(D) A person who makes sales of tangible personal property or services, the use of which is taxed by this article, and who regularly or systematically delivers such property or services in this state by means other than the United States mail or common carrier;
(E) A person who regularly or systematically solicits business in this state by the distribution, without regard to the location from which such distribution originated, of catalogs, advertising flyers or letters, or by any other means of solicitation of business, to persons in this state and by reason thereof makes sales to persons within the state of tangible personal property, the use of which is taxed by this article, if such solicitation satisfies the nexus requirement of the United States constitution;
(F) A person making sales of tangible personal property, the use of which is taxed by this article, where such person retains an ownership interest in such property and where such property is brought into this state by the person to whom such property is sold and the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession;
(G) Any other person making sales to persons within the state of tangible personal property or services, the use of which is taxed by this article, who may be authorized by the commissioner of taxation and finance to collect such tax by part IV of this article;
(H) The state of New York, any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada) or political subdivisions when such entity sells services or property of a kind ordinarily sold by private persons; and
(I) A seller of tangible personal property or services, the use of which is taxed by this article if either (I) an affiliated person that is a vendor as otherwise defined in this paragraph uses in the state trademarks, service marks, or trade names that are the same as those the seller uses; or (II) an affiliated person engages in activities in the state that inure to the benefit of the seller, in its development or maintenance of a market for its goods or services in the state, to the extent that those activities of the affiliate are sufficient to satisfy the nexus requirement of the United States constitution. See N.Y. Tax Law 1101
(b) The tax imposed under subdivision (b) of section eleven hundred five shall be paid with respect to receipts for property or services sold on or after August first, nineteen hundred sixty-five although made under a prior contract. Where property or service is sold on a monthly, quarterly or other term basis and the bills for such property or service are based on meter readings, the amount received on each bill for such property or service for a month or other term shall be a receipt subject to the tax, but such tax shall be applicable to all bills based on meters read on or after August first, nineteen hundred sixty-five only where more than one-half of the number of days included in the month or other period billed are days subsequent to July thirty-first, nineteen hundred sixty-five; provided, however, that where such bills are for telephone or telegraph service the tax shall apply to all receipts on such bills dated on or after August first, nineteen hundred sixty-five, for which no previous bill was rendered, excepting, however, charges for services furnished before the date of the first of such bills.
(c) The tax imposed under subdivision (e) of section eleven hundred five shall be paid upon any occupancy on and after August first, nineteen hundred sixty-five, although such occupancy is pursuant to a prior contract, lease or other arrangement. Where rent is paid on a weekly, monthly or other term basis, the rent shall be subject to the tax imposed under such subdivision (e) to the extent that it covers any period on and after August first, nineteen hundred sixty-five and such rent shall be apportioned on the basis of the ratio of the number of days falling within said period to the total number of days covered thereby.
(d) Except as otherwise hereinafter provided, the tax imposed under subdivision (f) of section eleven hundred five shall be applicable to any admission to or the use of facilities of a place of amusement occurring on or after August first, nineteen hundred sixty-five, whether or not the admission charge has been paid prior to such date, unless the tickets were actually sold and delivered (other than for resale) prior to August first, nineteen hundred sixty-five to a person attending the performance occurring on or after such date.
(e) A refund or credit equal to the amount of the sales or compensating use tax paid on the sale or use of tangible personal property, under a local law, ordinance or resolution imposed pursuant to the authority of chapter eight hundred seventy-three of the laws of nineteen hundred thirty-four, as amended, or chapter two hundred seventy-eight of the laws of nineteen hundred forty-seven, as amended, shall be allowed, upon application to the tax commission as provided for herein, where such property has been used by the purchaser or user in performing the services subject to tax under paragraphs (1), (2), (3) and (5) of subdivision (c) of section eleven hundred five and such property has become a physical component part of the property upon which the services are performed or has been transferred to the purchaser of the service in conjunction with the performance of the service subject to tax, except that such refund or credit may not exceed the combined state and local taxes, if any, paid, pursuant to this article and under a tax imposed pursuant to the authority of article twenty-nine of this chapter, on the sale or use of the service in connection with which such property was used. Any refund or credit under this subdivision shall be paid out of or charged against the sales and use tax revenues derived from the taxes imposed under this article and pursuant to the authority of article twenty-nine of this chapter in the same proportion as the respective rates of such state and local taxes bear to the combined rate of both such taxes. The amount to be paid out of or charged against sales and use tax revenues of localities derived from the taxes imposed pursuant to the authority of article twenty-nine of this chapter shall be paid out of or charged against such revenues of the locality which imposes the tax on the sale or use of the service in connection with which such property was used. An application for the refund or credit provided for herein may not be made until the tax on the sale or use of the service has been reported to the tax commission in the return of the vendor or the return of the customer, where such return is required, and such application must be made within three years of the time such tax was payable to the tax commission. Where an application for credit has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that he files his application for credit. However, the taking of the credit on the return shall be deemed to be part of the application for credit. The procedure for granting or denying such applications for refund or credit and review of such determinations shall be as provided in subdivision (b) of section eleven hundred thirty-nine. No interest shall be allowed or paid upon any refund made or credit allowed pursuant to this subdivision.
(f) With respect to the additional tax of one percent imposed effective April first, nineteen hundred sixty-nine, the provisions of subdivisions (a), (b), (c), (d) and (e) of this section apply, except that for the purposes of this subdivision, all references in said subdivisions (a), (b), (c) and (d) to August first, nineteen hundred sixty-five shall be read as referring to April first, nineteen hundred sixty-nine, all references in said subdivision (a) to April first, nineteen hundred sixty-five shall be read as referring to December first, nineteen hundred sixty-eight, and the reference in said subdivision (b) to July thirty-first, nineteen hundred sixty-five shall be read as referring to March thirty-first, nineteen hundred sixty-nine. Nothing herein contained shall be deemed to exempt from tax at the rate in effect prior to April first, nineteen hundred sixty-nine any transaction which may not be subject to the additional tax imposed effective on that date.
(g) With respect to the additional tax of one percent imposed effective June first, nineteen hundred seventy-one, the provisions of subdivisions (a), (b), (c), (d) and (e) of this section apply, except that for the purposes of this subdivision, all references in said subdivisions (a), (b), (c) and (d) to August first, nineteen hundred sixty-five shall be read as referring to June first, nineteen hundred seventy-one, all references in said subdivision (a) to April first, nineteen hundred sixty-five shall be read as referring to February first, nineteen hundred seventy-one, and the reference in said subdivision (b) to July thirty-first, nineteen hundred sixty-five shall be read as referring to May thirty-first, nineteen hundred seventy-one. Nothing herein contained shall be deemed to exempt from tax at the rate in effect prior to June first, nineteen hundred seventy-one any transaction which may not be subject to the additional tax imposed effective on that date.
(h) With respect to the tax imposed under subdivision (a) of section eleven hundred five on retail sales of floor covering, such as carpet, carpet padding, linoleum and vinyl roll flooring, carpet tile, linoleum tile and vinyl tile, made on or after the effective date of this subdivision, the tax imposed under subdivision (c) of section eleven hundred five on the service of installing floor covering rendered on or after such effective date and the compensating use tax imposed under section eleven hundred ten on taxable uses of floor covering occurring on or after such effective date, the provisions of subdivision (a) of this section apply, except that for the purposes of this subdivision, all references in said subdivision (a) to August first, nineteen hundred sixty-five, shall be read as referring to the effective date of this subdivision and all references in said subdivision (a) to April first, nineteen hundred sixty-five, shall be read as referring to the date four months prior to such effective date. Nothing herein contained shall be deemed to change the taxable status of any sale or use which occurred or service which was rendered prior to such effective date.
(i) The taxes imposed under paragraph five of subdivision (c) of section eleven hundred five with respect to interior cleaning and maintenance services performed on a regular contractual basis for a term of not less than thirty days and under paragraphs six through eight of such subdivision shall be paid with respect to receipts from all sales of services rendered after May thirty-first, nineteen hundred ninety, although rendered under a prior contract.
(j) (i) The tax imposed under subparagraph (i) of paragraph nine of subdivision (c) of section eleven hundred five shall be paid with respect to receipts from all sales of services rendered after August thirty-first, nineteen hundred ninety, although rendered under a prior contract. Nothing herein contained shall be deemed to change the taxable status of any service which was rendered prior to September first, nineteen hundred ninety.
(ii) The tax imposed under subparagraph (ii) of paragraph nine of subdivision (c) of section eleven hundred five shall be paid with respect to the furnishing or provision of services after August thirty-first, nineteen hundred ninety-three, although furnished or provided under a prior contract.
(l) The tax imposed by paragraph ten of subdivision (c) of section eleven hundred five of this part must be paid with respect to receipts from all sales of services on or after the effective date of such paragraph although rendered or agreed to be rendered under a prior contract. Where a service is sold on a monthly, quarterly, yearly, or other term basis, the charge for the service will be subject to the tax imposed by that paragraph to the extent that the charge is applicable to any period on or after the date the tax becomes effective, and the charge must be apportioned on the basis of the ratio of the number of days falling within the period to the total number of days in the full term or period.