EFTA01129735.pdf

Note: See also TP-64, Notice to Taxpayers Requesting Information or Assistance from the Tax Department. The publication you requested begins on page 2 below. EFTA01129735 New York State Publication 750 Department of (6/ID) Taxation and Finance A GUIDE TO SALES TAX IN NEW YORK STATE EFTA01129736 This page intentionally left blank EFTA01129737  Publication 750 (6/10) About this publication This publication is a guide to New York State and local sales and use taxes for businesses that sell taxable tangible personal property, perform taxable services, receive amusement charges, or operate a hotel or motel, and restaurants, taverns, or other establishments that sell food and drink. It is the department's goal that all taxpayers meet their sales tax obligations and pay the correct amount of tax due. If your business makes sales of property or services that are subject to sales tax, it must register for sales tax purposes and obtain a Certificate of Authority. You should thoroughly read all the information contained in this publication so that you become aware of your obligations in regard to sales tax. If you fail to fulfill your obligations under the sales tax law, you could be subject to penalties and/or charged with a crime. Some of these obligations include, but are not limited to: • registering for sales tax purposes and displaying a Certificate of Authority (see page 12, How to obtain your Certificate of Authority); • collecting the proper amount of sales tax from customers (see page 25, Calculating and stating the sales tax); • issuing and accepting properly-completed sales tax exemption certificates (see page 30, Exemption certificates); • maintaining records of sales and purchases in an orderly and adequate manner (see Part III, Record keeping); • filing sales tax returns and remitting any sales tax due in a timely manner as a trustee for the State (see Part IV, Filing your sales tax return); • assuming personal liability for the payment of sales tax by certain responsible persons of a business; and • providing notice to the department 20 days prior to purchasing or acquiring business assets from a sales tax vendor, other than in the ordinary course of business (see Part VI, Purchasing or acquiring a business or its assets: Caution). Publication 900 Important Information for Business Owners, provides additional information on your responsibilities under the sales tax law. Obligation to register for sales tax purposes You are required to register for sales tax purposes with the Tax Department if the sales you make are subject to tax. You must be registered to issue or accept most exemption certificates and documents. The information contained in this publication is intended to help you decide whether or not you are required to register for sales tax purposes. As used in this publication and for purposes of the Tax Department's registration rules, the term vendor includes persons required to collect sales tax on sales and transactions described in Part II, Making sales. Also, when used in this publication, the terms sales, purchases, taxable sales, and taxable purchases, include, but are not limited to, where appropriate, the sale or purchase of the following: tangible personal property, certain services, rentals of hotel and motel rooms, admissions to places of amusement, and dues paid to social or athletic clubs. Note: See page 19, Sales by New York and United States governmental entities and certain exempt organizations, for information relating to sales by governmental entities and certain exempt organizations. 3 EFTA01129738 Publication 750 (6/10) Obligation to collect and remit tax Once you are registered for sales tax purposes, you are responsible for collecting and remitting both state and local sales taxes to the Tax Department, along with any use tax you may owe. If your business is an entity such as a corporation or a partnership, the responsibility for collecting and remitting sales tax extends to the responsible persons of the business. Therefore, certain owners, officers, directors, employees, partners or members (responsible persons) of a business can be held personally liable for the tax due owed by the business. As trustees for the state, a business and its responsible persons have an obligation to remit any sales tax that is due with timely filed sales tax returns. Failure to collect and remit sales tax can result in the imposition of penalties and interest. (See page 36, Filing your sales tax return.) Record keeping You must keep detailed records of every sale, the amount paid, charged, or due on the transaction, and the sales tax that is due, if any. Keeping good records of your business operation will help you prepare accurate and complete sales tax returns. (See Part III for more information on Record keeping and Tax Bulletin Record-Keeping Requirementsfor Sales Tax Vendors (TB-ST-770).) In addition to being required to register for sales tax purposes, you may also be subject to registration, collection, or payment requirements for other taxes. For a more detailed description of these taxes, see Publication 20, New York State Tax Guide For New Businesses. Additional information The department has recently posted new, plain language tax bulletins to its Web site. These web-based bulletins contain basic, easy-to-understand explanations of single subject sales tax topics. There are currently a number of tax bulletins on our Web site covering a variety of sales tax topics, and new bulletins will continue to be added to the department's Web site on a regular basis. The department continues to have available many general and industry-specific sales tax publications, as well as technical service memorandums, that provide additional detailed information on various sales tax topics. You can obtain any tax bulletin, publication, memoranda (TSB-M) or document referenced in this publication by visiting the Tax Department's Web site at ivww.nystax.gov or by contacting us directly. The department's Web site also allows you to receive timely notification of sales tax changes by subscribing to our e-mail subscription service. If you have any questions about sales and use tax, you may contact us by using the information provided in the Need help? section on the back cover of this publication. Note: A Publication is an informational document that addresses a particular topic of interest to taxpayers. Subsequent changes in the law and 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. 4 EFTA01129739  Publication 750 (6/10) Table of Contents Page Part I — Registration Who must be registered for sales tax purposes 7 Rules for out-of-state businesses 8 About your Certificate of Authority 9 Types of Certificates of Authority 10 How to obtain your Certificate of Authority 12 Denial of a Certificate of Authority 13 Taxpayers' Bill of Rights 13 New Jersey sales tax agreement 14 Registration rules for farmers 14 Registration rules for contractors 15 Registration rules for manufacturers 15 Part II — Making sales Taxable sales 16 Additional sales taxes and fees you may be required to collect 21 Sales taxes imposed only within New York City 22 Sales taxes imposed by certain school districts 24 Calculating and stating the sales tax 25 Exempt sales 28 Exempt sales — exemption certificate required 30 Exemption certificates 30 Exempt purchasers 31 Taxable business purchases 32 Part III — Record keeping Record-keeping rules 34 Part IV - Filing your sales tax return Filing requirements 36 Completing your sales and use tax return 39 Part V — Show and entertainment promoters Show promoters 40 Entertainment promoters 42 Part VI — Purchasing or acquiring a business or its assets: Caution Bulk sales transactions 44 Appendix — List of common sales tax forms 47 Need help Back cover 5 EFTA01129740 Publication 750 (6/10) 6 EFTA01129741  Publication 750 (6/10) Part I — Registration Who must be registered for sales tax purposes You must be If you will be selling property or services in New York State that are registered for sales subject to sales tax, you may be required to collect the sales tax from the tax purposes with person to whom you make the sale. (The discussion on page 16 under the Tax Department Taxable sales will help you determine whether the sales you make are if you will be selling subject to sales tax.) In general, the sales tax you must collect and remit is tangible personal computed using the combined state and local rate in effect in the locality property or services where you deliver the taxable product or service to the customer. See pages on which you are 25 through 27 of this publication for information on the special rules for the required to collect calculation and collection of tax on sales of motor fuels, alternative fuels, sales tax motor vehicles, and certain boats. If you must collect sales tax on your sales, then you must register for sales tax purposes with the Tax Department and obtain a Certificate of Authority (see page 9 and Tax Bulletin flow to Registerfor New York State Saks Tax (TB-ST-360)). You must also be You must also be registered for sales tax purposes to issue or accept most registered for sales New York State sales tax exemption documents. For example, even though tax purposes to issue wholesalers may never collect sales tax because all of their purchases and or accept most sales are for resale (and, therefore, are eligible for exemption from sales New York State tax), they must still be registered to legally issue and accept most sales tax exemption exemption documents. certificates For additional information on who must be registered for sales tax purposes please see Tax Bulletin Do I Need to Registerfor Sales Tax? (TB-ST-175). If you engage in If you are required to register for sales tax purposes but fail to do so and business without you engage in business without having obtained a valid Certificate of obtaining a valid Authority, you will be subject to a penalty. The penalty is up to $500 for the Certificate of first day business is conducted without having obtained a valid Certificate Authority, you will of Authority, plus up to $200 per day for each day thereafter. The maximum be subject to a penalty for engaging in business without obtaining a valid Certificate of substantial penalty Authority is $10,000. If you are changing If you change your organizational structure (for example, from a sole your organizational proprietorship to a corporation, a limited liability company, or a structure, you must partnership), the new organization must register for sales tax purposes and register for sales tax obtain a new Certificate of Authority. The new business must obtain its own purposes as a new Certificate of Authority before it begins operating. You must also file a business final return for your existing business and surrender the Certificate of Authority that was issued to the existing business. 7 EFTA01129742 Publication 750 (6/10) Purchasing, If you are purchasing, transferring, or assigning either part or all of the transferring, or assets of an existing business, there are specific rules that apply to the assigning business transaction (see Part VI on page 44). assets Rules for out-of-state businesses Even though you are Even though you are located outside of New York State, if you have located in another customers in New York State, and you have sufficient connection with state, if you have New York State, you may be required to register for New York State and customers in local sales tax purposes. For example, if you are located outside New York New York State, you State, make sales of taxable products to persons within New York State, may be considered a and regularly deliver the products in your trucks to your New York State vendor for customers, you have sufficient connection with New York State and must New York State register for sales tax purposes and collect and remit sales tax. Also, if you sales tax purposes solicit sales of taxable products or services through employees, salespersons, independent agents, or service representatives located in or who enter New York State, you must register for New York State sales tax purposes. If the only connection you have with New York State is the delivery of your products into the state by U.S. Postal Service or common carrier, you are not required to register or collect sales tax. Thus, some out-of-state businesses (including some mail order companies) may not have sufficient connection with New York State to be required to collect and remit sales tax. However, out-of-state sellers that make taxable sales of tangible personal property or services in New York are presumed to be sales tax vendors under certain conditions where they have agreements with New York residents to compensate them for referring potential customers to the seller. Also, under certain conditions, sellers of tangible personal property or services located outside of New York that have an affiliate located in New York may also be required to register to collect and remit sales tax. For more detailed information, see TSB-M-08(3)S New Presumption Applicable to Definition of Sales Tax Vendor, TSB-M-08(3.11S Additional Information on How Sellers May Rebut the New Presumption Applicable to the Definition of Sales Tax Vendor as Described in TSB-M-08(3)S, and TSB-M-09(3)S, Definition of a Sales Tax Vendor is Expanded to Include Out-of-State Sellers with Related Businesses in New York State. Although, as an out-of-state business, you may not be required to collect sales tax from your customers in New York State, your customers are still responsible for the payment of sales or use tax on their purchases. The use tax complements the sales tax. An example of when use tax applies is when a New York State resident purchases taxable products or services outside of New York State and then brings them or has them brought into New York 8 EFTA01129743  Publication 750 (6/10) State for use here. For more information, see Publication 774, Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department: Questions and Answers. Although you may not have sufficient connection with New York State to require you to be registered, you may voluntarily register for sales tax purposes to collect and remit the sales tax that is otherwise due from the purchaser. You will then have the same obligations as vendors that are required to register with the Tax Department. If you are required to register for sales tax purposes, or if you voluntarily register, you must collect sales tax on all taxable sales delivered by you, or for you, to the purchaser, or the purchaser's designee, in this state. The tax due is the combined state and local rate in effect in the locality where the taxable product or service is delivered. For more information on registration rules for out-of-state businesses, see Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-1751. About your Certificate al Authority Your Certificate of Your Certificate ofAuthority authorizes you to collect sales tax on your Authority authorizes taxable sales and to issue and accept certain New York State sales tax you to collect sales exemption certificates. You cannot legally make taxable sales or issue or tax on your taxable accept many exemption documents until you have received your Certificate sales and to issue of Authority. Exemption certificates are forms that are filled out by a and accept certain purchaser and given to the seller, so that the seller has a record of why sales New York State tax was not required to be collected on the sale to which the certificate sales tax exemption relates. certificates Once you receive your Certificate of Authority, you are considered to be in business for sales tax purposes even if you never make a sale or never open the doors of your establishment. Therefore, it is important that you file your sales tax returns on time, even if you did not have any taxable sales during the reporting period, to avoid being subject to penalties for not filing. You must You must prominently display your Certificate of Authority at your place of prominently display business. If you have no permanent physical location, you can attach it to your Certificate of your truck, cart, wagon, stand, or other vehicle or facility from which you Authority at your conduct business. You are subject to a $50 penalty if you fail to properly place of business display your Certificate ofAuthority. If you have more than one place of business, you must display a Certificate of Authority at each place of business. You may not use photocopies of a Certificate of Authority but may request a separate certificate for each location from the Tax Department. See How to obtain your Certificate of 9 EFTA01129744 Publication 750 (6/10) Authority on page 12 for more information on applying for a Certificate of Authority when you have multiple business locations. If you have already received your Certificate of Authority, but need a duplicate copy because the original was lost or destroyed, you may contact us and request a duplicate original. Your Certificate of Your Certificate of Authority is not transferable or assignable. If you buy an Authority is not ongoing business, you must apply for your own certificate. (See Part VI on transferable page 44 for additional information on the rules regarding the purchase, transfer, or assignment of a business.) If you sell, transfer, or assign your business or cease doing business, you must surrender your Certificate of Authority to the Tax Department. Although your Certificate of Authority is not transferable or assignable, it may be amended to account for changes in the address of the business or business name. If you need to change your sales tax address you can do so by visiting our Web site or by contacting us directly. You can also use Form DTF-96 Report of Address Changefor Business Tax Accounts. Form DTF-95 Business Tax Account Update, can be used to provide the Tax Department with information regarding address changes, telephone number changes, and certain changes in business activities. Some changes in business activities may be processed by contacting us directly. Note: The department has instituted a sales tax vendor re-registration program for all registered vendors. You will receive a notice from the department when you are required to renew your sales tax Certificate of Authority. Also, see TSB-M-08(9)S Summary of the 2008 Sales and Use Tax Budget Legislation. For more information about the sales tax Certificate of Authority renewal program visit our Web site at www.rivstax.gov. You cease doing If you cease doing business, your Certificate of Authority must be returned business? to the department along with a "final" sales tax return for the business within 20 days of terminating the business. Special rules apply if you Web File a "final" sales tax return. Visit the Online Services section of our Web site for more information. Also, see Tax Bulletin Filing a Final Sales Tax Return (TB-ST-265). Types of Certificates of Authority The Tax The Tax Department issues two types of Certificates of Authority for sales Department issues tax purposes: two types of Certificates of • regular Authority for sales tax purposes • temporary 10 EFTA01129745  Publication 750 (6/10) The type of Certificate ofAuthority you apply for should be based on the anticipated duration of your business activities. Note: The department will no longer issue the Certificate ofAuthorityfor Show and Entertainment Vendors. If you make sales at shows or entertainment events, such as flea markets, craft shows, antique shows, fairs, and similar shows you should apply for a regular Certificate of Authority. See TSB-M-08(111S, Changes Regarding the issuance of Certificates of Authority to Show and Entertainment Vendors, for more information. Regular Certificate You should apply for a regular Certificate ofAuthority if you will be ofAuthority making ongoing taxable sales from your home, a shop, a store, a cart, a stand, or any other facility or facilities from which you regularly conduct your business. It does not matter whether you own or rent the facility. You must apply for a regular Certificate of Authority at least 20 days before you begin operating your business in New York State. (See How to obtain your Certificate ofAuthority on page 12.) Temporal-) You may apply for a temporary Certificate ofAuthority if you expect to Certificate of make taxable sales in New York State for no more than two consecutive Authority quarterly sales tax periods in any 12-month period. In determining whether you meet this requirement, keep in mind that the sales tax quarters are: March I through May 31, June 1 through August 31, September I through November 30, and December 1 through February 28 (February 29 in a leap year). Show and entertainment vendors may not apply for a temporary Certificate ofAuthority; they must apply for a regular Certificate ofAuthority. However, even if you are eligible to obtain a temporary Certificate of Authority, it may be to your benefit to apply for a regular Certificate of Authority. That is because a temporary Certificate ofAuthority is good only for the two consecutive quarterly sales tax periods listed on your application and on your temporary Certificate ofAuthority. In addition, if you operate the same business or another business during the next 12-month period, you must again apply for a new temporary Certificate of Authority at least 20 days before you resume doing business. Example: You sell Christmas trees in November and December, and your taxable sales consist only of sales during this period. Accordingly, you are eligible to applyfor a temporary Certificate of Authority. However, if you intend to conduct this type ofbusiness activity every year, you may wish to applyfor a regular Certificate of Authority. This could be to your benefit because you would not have to apply every yearfor a new temporary Certificate of Authority, as the regular 11 EFTA01129746 Publication 750 (MO) Certificate of Authority would continue to be in effect until you indicate that you are no longer doing business by filing a final return. However, once you receive a regular Certificate of Authority you must file sales and use tax returns even if you have no sales tax liability. Also, even if you file a final return, and subsequently change your plans, you may applyfor reactivation of your regular Certificate of Authority simply by contacting us directly (as long as it is within one year of deactivation). Example: You have no consistent year-to-year sales activity in New York State. However, in 2007 you intend to sell costume jewelry from a kiosk in the common area of a mallfrom October through December. This will be your only business activity in New York State in 2007 and you do not intend to sell in New York State in 2008. You should applyfor a temporary Certificate of Authority. Example: You intend to sell crafts at a farmers' market for seven months, from the beginning of April through the end of October. This seven-month period covers three consecutive quarterly sales tax periods: March through May, June through August, and September through November. You may not applyfor a temporary Certificate of Authority. You must apply for a regular Certificate of Authority. If you qualify to apply for a temporary Certificate of Authority, you must apply for it at least 20 days before you begin operating your business. (See below, How to obtain your Certificate of Authority.) How to obtain your Certificate of Authority You must apply for You must apply for a Certificate of Authority at least 20 days before you a Certificate of begin operating your business. You may apply online, by visiting the Authority at least 20 Online Permit As. ' ance and Licensing (OPAL) Web site at days before you Applying online is the fastest and easiest way to obtain begin business your certificate. You may also apply by filling out Form DTF-17, Application to Register for a Sales Tax Certificate of Authority, and sending it to the address listed in the instructions for that form, at least 20 days before you begin operating your business. If you need to file the paper version of the application, you may obtain a copy of the form from the Tax Department's Web site or by contacting us. See, the Need help? section on the back cover of this publication. Upon receipt of your online or paper application, the Tax Department will review your application. If your application is approved, we will mail you a Certificate of Authority. You cannot legally make taxable sales or issue or accept most exemption certificates until you have received your Certificate of Authority. If you listed several places of business on your online 12 EFTA01129747  Publication 750 (6/10) application or Form DTF-17-NIT, Schedule ofBusiness Locations For a Consolidated Filer, the Tax Department will provide you with a separate Certificate ofAuthority for each location. Denial of a Certificate of Authority The Tax The Tax Department may deny your request for a Certificate ofAuthority Department may under certain circumstances. For example, if any tax imposed under the Tax deny your request Law has been finally determined to be due from you and that tax liability for a Certificate of has not been paid, your application for a Certificate ofAuthority may be Authority denied. Remember that you cannot legally make taxable sales or issue or accept most New York State exemption certificates until you receive a Certificate ofAuthority. See page 7 for information regarding the penalties imposed for engaging in business without first receiving a Certificate of Authority. Within 30 days of If your timely and complete application for a Certificate ofAuthority is receiving notice that denied, we will send you a Notice ofProposed Refusal to Register by your application for certified mail within five days of the date we receive your application. The a Certificate of Notice ofProposed Refusal to Register will state the basis for the proposed Authority has been refusal. If you believe that the Tax Department has made a mistake, you denied, you may file should file a request for a conference with the Bureau of Conciliation and either a request for Mediation Services, or file a petition for a hearing with the Division of Tax a conference, or a Appeals. You must file the application for a conference or hearing within petition for a 30 days of receipt of the Notice ofProposed Refit-sal to Register; otherwise hearing the Notice ofProposed Refusal to Register becomes final. Once the Notice ofProposed Refit-sal to Register becomes final, you are prohibited from engaging in any business in New York State for which a Certificate of Authority is required. Taxpayers' Bill of Rights The Taxpayers' Bill New York State has a Taxpayers' Bill ofRights that enhances and ofRights requires formalizes your rights as a New York State taxpayer. In part, the Bill of the Tax Department Rights requires the Tax Department to advise you, in writing, of your rights to advise you, in to appeal a departmental decision. For more information on your rights, see writing, of your Publication 38 Your Rights as a Taxpayer, or contact us. rights to appeal a departmental decision 13 EFTA01129748 Publication 750 (6/10) New Jersey sales tax agreement Simplified sales tax A simplified sales tax reporting program is part of an agreement entered reporting program into between New York State and the State of New Jersey. between New York State and the State Under the simplified tax reporting program, New York State vendors who of New Jersey have no business location in New Jersey, but who make taxable sales of tangible personal property or services that are delivered to persons in New Jersey, may collect the New Jersey sales tax due on those sales. The simplified tax reporting program also allows New Jersey vendors who have no business location in New York, but who make taxable sales of tangible personal property or services that are delivered to persons in New York, to collect New York State sales tax due on those sales. The agreement between the states also permits the states to actively exchange sales and use tax information. Registering for the Vendors who participate in the program register with both their home state, program and the state for which they wish to collect sales tax. The vendor files a single sales tax return with the home state, along with a combined payment of all sales taxes collected and a breakdown of how much tax was collected on behalf of each state. The home state will, on the vendor's behalf, send the taxes due the other state to the other state. For more information on registering for the New Jersey program, see Publication 32, New Jersey/ New York Cooperative Interstate Sales and Use Tax Administration, (New Jersey). Note: The reciprocal sales tax agreement between the State of Connecticut and the State of New York has been terminated. However, the exchange of sales and use tax information remains in effect. For more detailed information relating to the changes as a result of the termination, see Important Notice, N-09-16 Important Informationfor Participants in the Connecticut/New York State Simplified Sales and Use Tax Reporting Program. Registration rules for farmers Farmers are not A farmer is not required to register for sales tax purposes if the only sales required to register the farmer makes are sales of food and food products that are exempt from for sales tax tax. For example, if a fanner sells fruits, vegetables, baked goods, jellies, purposes unless they jams, and preserves at a roadside stand, the farmer will not be required to make sales that are register. In addition, Form ST-17% Fanner's and Commercial Horse subject to sales tax Boarding Operator's Exemption Certificate, can be issued by farmers to make purchases exempt from the payment of sales tax when purchasing certain goods and services used predominantly (more than 50%) in farm production, even though the farmer is not registered for sales tax purposes. 14 EFTA01129749  Publication 750 (6/10) However, if a fanner sells taxable tangible personal property such as hay, livestock, plants, shrubs, trees, homemade crafts, or items such as candy and other confections, or sells food or drink for consumption on the premises where sold, then the fanner must register for sales tax purposes and collect sales tax on sales of taxable tangible personal property and services, or taxable food and drink. Registration rules for contractors A contractor is not required to register for sales tax purposes if the contractor only contracts or subcontracts to do capital improvements. See Publication 862 Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property, for more information on the application of the sales tax law to contractors and the definition of capital improvement. Contractors must A contractor is required to be registered for sales tax purposes if the register for sales tax contractor will make sales that are subject to sales tax. For example, if a purposes if the sales construction contractor makes repairs such as repairing a roof or a leaking they make are pipe, the contractor must register for sales tax purposes. subject to tax or to issue certain A contractor must also register for sales tax purposes if the contractor will exemption be issuing an exemption document to make certain specific purchases documents exempt from sales tax (such as a purchase of tangible personal property that is installed into real property owned by an exempt organization). Registration rules for manufacturers As used in this section, the term manufacturer means and includes manufacturers, processors, generators, assemblers, refiners, miners, and extractors. Manufacturers must A manufacturer may purchase raw materials and certain machinery, register for sales tax equipment, parts, tools, supplies and related services exempt from sales tax. purposes if the sales In order to make these purchases exempt from sales tax and issue the they make are appropriate exemption documents, a manufacturer is required to be subject to tax or to registered for sales tax purposes. issue or accept most exemption Moreover, a manufacturer must also register for sales tax purposes to documents accept a resale certificate from its customer. See Publication 852, Sales Tax Information for Manufacturers, Processors, Generators, Assemblers, Refiners, Miners and Extractors, and Other Producers of Goods and Merchandise, for more information. 15 EFTA01129750 Publication 750 (6/10) Part II — Making sales Taxable sales The following products and services are subject to sales tax when delivered in New York State, unless specifically exempted or excluded. This list is intended to provide general guidelines of the types of sales that are subject to tax and is not an all-inclusive list. If your business will be making sales of any of these types of products or services, you are required to register for sales tax purposes and obtain a valid Certificate ofAuthority prior to doing business in New York State. For further information regarding products and services subject to sales tax, see Tax Bulletin Quick Reference Guide for Taxable and Exempt Property and Services (TB-ST-7401. Items and services Generally, the sales tax is imposed on: subject to tax • retail sales of tangible personal property; unless specifically exempted in the law; • sales of certain services (see page 18); • sales of gas, electricity, refrigeration, and steam (utilities); • sales of gas, electric, refrigeration and steam service (utilities); • sales of telephony and telegraphy; • sales of telephone and telegraph service (including telephone answering services, facsimile transmission services, and mobile telecommunications services); • sales of food and drink for on-premises consumption, for example, when sold by restaurants and taverns; • sales of food and drink when sold by caterers; • sales of sandwiches and heated food; • rent for occupancy of hotel or motel rooms (including bed and breakfasts, boarding houses, guest houses, etc.). For more information see Publication 848 A Guide To Sales Tax For Hotel And Motel Operators; 16 EFTA01129751  Publication 750 (6/10) • admission charges to places of amusement, other than live dramatic or musical arts performances, motion picture theaters, sporting facilities or activities in which the patron is the participant, live circus performances, or charges which are taxed under any other law of this state, such as for admissions to race tracks, boxing, sparring or wrestling matches or exhibitions; Note: 75% of admission charges to qualifying places of amusement are exempted from the imposition of sales tax. (See TSB-M-O6(12)S Summary of the 2006 Budget Legislation Relating to Sales Taxes, and TSB-M-O4(7)S Exemption from Sales Taxes on 75% of the Admission Charge to a Qualifying Place of Amusement.) • dues, including initiation or membership fees, paid to social or athletic clubs when the combined dues and fees are more than $1O per year; and, • the charges of a roof garden, cabaret, or other similar place. Note: When certain conditions are met, a portion of the charges made by a roof garden, cabaret, or other similar place for admission to see a dramatic or musical arts performance is exempt from sales tax. (See TSB-M-O6(15)S Supplemental Summary of Recently Enacted Legislation Affecting Sales and Use Taxes Effective in 2006.) For sales tax purposes, the term sale includes a sale, a lease, rental, exchange or barter, and license to use or consume. For computer software, the term sale also includes the right to reproduce the software. Sales of tangible The term tangible personal property means physical personal property, of personal property any nature, that has a material existence and is perceptible to the human senses. Tangible personal property includes a variety of goods. Examples of taxable sales of tangible personal property include, but are not limited to, sales of: • furniture, appliances, and lighting fixtures; • certain clothing and footwear;* • machinery and equipment, parts, tools, and supplies; • computers; • prewr