Real Estate Consulting Services Are Not Subject to Sales Tax in New York

Tuesday, March 13th, 2012

 
 
Share
Link
New York
General

The New York State Department of Taxation and Finance recently issued an advisory opinion discussing the taxability of real estate consulting services. N.Y. Advisory Op. of the Commr. of Taxn. and Fin. TSB-A-12(4)S (Mar. 2, 2012). The petitioner, who is starting a real estate consulting business, plans to offer its customers various consulting services, including locating properties for sale, providing custom observation and analysis of the properties, providing property and neighborhood tours to interested clients, etc. These activities generally consist of collecting, compiling, and analyzing information and providing some type of report to the customer for an agreed upon charge.

New York taxes sales of services only when the service is specifically listed as taxable. See N.Y. Tax Law secs. 1105(b)-(c), (e)-(f), 1110(a). New York does not include consulting services among the services subject to sales tax; however, New York does tax sales of information services, which include collecting, compiling, or analyzing information of any kind or nature. Thus, if the consulting service in question is determined to be an information service, it would be subject to tax. Generally, consulting services are different from information services in that a consulting service provides information that is personal or individual in nature and is not provided to any person other than the consulting client. Because the real estate consulting services discussed in the advisory opinion are individual in nature, provided by the petitioner to a particular client, and not provided to any person other than that client, they should qualify as exempt consulting services as opposed to taxable information services.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...