November 2021

Now that the holidays are approaching, we don’t want to bore you with sales tax facts…we want to impress you with some FUN sales tax facts. The holidays are filled with purchases of toys and jewelry and accessories – all of which are simply tangible personal property subject to sales tax. But what are some things that can be purchased in New York this season without paying sales tax?

• Does your daughter want a pony for the holidays? Maybe get her a racehorse instead. If certain criteria are met, a person can purchase a thoroughbred or standardbred racehorse exempt from sales tax.

• Do you get the family new pajamas every year? Little Timmy want the Spiderman outfit or Emily want the princess dress? Well, clothing and footwear sold for less than $110 per item is exempt from New York State sales tax but may be subject to local sales tax.

• Maybe your Christmas wish is to expand your business? When a company purchases brochures to mail to prospective customers, the company does not have to pay sales tax when purchasing the brochures. (If the company is handing the brochures out at an event, it does have to pay sales tax on the purchase of the brochures.)

• Want something for yourself where you can express your inner turmoil of fighting the crowds and emptying your wallet every December? Tattoos are exempt from sales tax everywhere except New York City.

• The gift (not really) for every woman in your life – In 2016 that the State exempted feminine hygiene products from sales tax, finally deciding that they are necessary products (really just kidding, don’t give feminine hygiene products as a gift, it would be a terrible idea).

• Tired of hot cocoa? Kombucha is exempt from sales tax since it is a tea and not a soda or “sugary” drink.

If you are wondering whether your product or service fall within a sales tax exemption, give Sales Tax Defense a call. We are always here to help.

Success Story

Expansion into Multiple States

A business that was formed about a year ago was quickly expanding. It began in New York but was getting work in 10 other states, enough work that it was exceeding the economic nexus thresholds in those states. The business contacted Sales Tax Defense to help it with its sales tax obligations.

We began with registering the business with the different state taxing authorities. Sales tax licenses were obtained, and online accounts were set up. We then researched and provided guidance on whether their different services were subject to sales tax in the 10 states. An easy reference taxability chart was provided.

Going forward, Sales Tax Defense will prepare and file all sales tax returns in the different states. The business was able to rest assured that its sales tax needs were being met!