NYS Sales Tax Filings Get Even More Confusing

What is Waste Tire?

According to the NY State Department of Taxation and Finance, Waste Tire means any solid waste which consists of whole tires or portions of tires. Tire casings separated for retreading with enough tread for resale are included under this term, however, crumb rubber is not considered a solid waste.

Of course, NYS imposes a Waste Tire Management Fee…

The New York State Department of Taxation & Finance has a waste management fee. It has always been reported on the Waste Tire Management Fee Return each quarter. This makes sense. The Waste Tire Management Fee gets reported on the Waste Tire Management Fee Return.

Beware of this recent change…

Just to make the sales tax return even more complicated, because figuring out how to report sales tax and use tax correctly on the return isn’t enough, lets add the Waste Tire Management Fee to the sales tax return. That makes sense, right?  WRONG! However, it’s no surprise that the New York State Department of Taxation & Finance wants to make sales tax the most confusing area of tax possible. Therefore, beginning on or after March 1, 2023, all waste tire management fees will need to be reported on your quarterly sales and use tax return.

So, what does this mean?

This means you have one less tax return to file.  But, you must remember that the Waste Tire Management Fee is now on the sales and use tax return. If you forget to report it, the Waste Tire Management Fee is subject to sales and use tax penalties and interest, beginning March 1, 2023.

The sales and use tax return is constantly changing, even when it doesn’t necessarily involve sales tax at all.  Keep up with Sales Tax Defense LLC for any updates! Contact us when you need help!

Success Story

Audit Closed with No Tax Due!

Sales Tax Defense represented a company on its’ first sales and use tax audit.  The Company had both regular taxable sales and fuel sales to boats.  With all of the different tax rates that go into fuel sales, calculating tax due is a lot less straight forward. Often times, there are problems when handling an audit involving fuel tax. This occurs since fuel tax almost always needs to be explained to the auditor.

Luckily, this company kept all of its records.  We went back and forth with the auditor on both the calculation of tax on the fuel sales and the taxability of other items. There were numerous discussions, and involved the  auditor’s supervisor. We were thrilled to tell our client that the audit was closed as a no change!