Sales Tax and Dragons

If we lived in a world where dragons existed, how would dragons and related purchases be treated for sales tax purposes?

February 2024

t’s all about dragons recently. House of the Dragon (prequal to Game of Thrones) has been a hit and viewers are eagerly awaiting season 2 coming this summer. The books Fourth Wing and Iron Flame by Rebecca Yarros took the first and second spots on The New York Times Bestseller list for weeks. And for those who celebrate Lunar New Year, this is the Year of the Dragon.

If dragons existed, would they be subjected to sales tax?

If we lived in a world where dragons existed, how would dragons and related purchases be treated for sales tax purposes? Under New York State tax law, pets like dogs and cats are seen as property. Sales tax is due on the purchase of a cat or dog, so sales tax would likely be due on the purchase of a dragon.  Even barter transactions where you trade a dragon for a legion of Unsullied warriors would be taxed.

What if you had to feed the dragon?

Food sold in a grocery state for human consumption is usually exempt from sales tax. Some examples are fruits, vegetables, meat, fish, and bread. However, dog and cat food are subject to sales tax, even if such food is made from meat and grains. If companies began making dragon food, it too would likely be subject to sales tax. However, Dragons might prefer that raw steak in the meat aisle of your grocery store.

Would shields to protect against fire be subject to sales tax?

As everyone knows, dragons breathe fire. A dragon owner might need a shield and special fire-proof clothing to protect against an accidental blaze. Shields are simply tangible personal property that would be subject to sales tax in New York. However, clothing costing less than $110 per item is exempt from New York State and New York City sales tax. Of course, there is an exception to every rule – protective gear is taxable. Even clothing that falls under the exemption is still subject to local sales tax in most other jurisdictions in the State.

We hope everyone enjoys this Year of the Dragon and if anyone has a sales tax question, reach out to Sales Tax Defense!

Guardians of Money

The Tooth Fairy, Santa Claus, the Easter Bunny, Sandman, and Jack Frost are charming and mythical Guardians. They elicit smiles with promises of delight, and protect us from Pitch’s nightmares. What if we told you that we could bring a different kind of joy? Imagine another Guardian, one that could help you gain a refund from your sales and use tax filings?

Getting a refund doesn’t take magical powers…or does it?

Sales and use tax refunds are typically seen as another mythical entity – something we’ve heard existed, but maybe never believed. We think it’s time to reconsider this. We have found that even the most conscientious businesses often overpay in their sales and use tax filings. Let’s use Company X as an example. Upon our review, we discovered they had overpaid a substantial $349,535.21. Though our initial attempt with the Audit Division was unsuccessful—something not uncommon in our extensive history of handling refunds—we proceeded to the Bureau of Conciliation and Mediation Services for a hearing. Employing our persuasive skills and presenting the indisputable facts, we successfully settled the claim for a noteworthy $274,466.77. Not the full amount sought, but who wouldn’t be pleased with a substantial sum like that?

Just call us the Guardians of Money!

While we are widely recognized as the go-to source for all sales and use tax needs, many are unaware that we also assist with refunds. Way more rewarding than finding childhood memories stored in baby teeth (it sounds gross, even to us), “found” money does wonders to keep the nightmares away.  All you need to do is believe. “Pitch” would rather have you as non-believers, feeding you nightmares and encouraging you to continue over-paying. It’s not mere luck that leads us to these discoveries—it’s our 17 years of experience and tenacity that enables us to deliver results for our clients. Maybe we should call ourselves the Guardians of Money?

If you’re curious about the potential for a refund for your business or client, please reach out to us at (631) 491-1500, or [email protected].