New York Exempts Scaffold Systems Used For Capital Improvements

Monday, November 3rd, 2014

 
 
A construction worker standing on a scaffold.
Share
Link
New York
General

The New York Department of Taxation and Finance recently released a technical memo explaining how sales tax applies to scaffolding systems used for exempt capital improvements.

Generally, scaffolding systems are taxable as a combination of taxable goods and taxable services. Scaffolding systems are fixed structures that support, protect, or convey people or materials during the construction or repair of buildings and other real property. Scaffolding services are used for taxable maintenance and repair and for exempt capital improvements. To be exempt, capital improvements must (1) substantially add to the property's value or prolong its life, (2) be permanently affixed to the property, and (3) be intended as a permanent installation. If the end result of an improvement is merely the repair or maintenance of property, the improvement is not exempt.

Scaffolding systems used in exempt capital improvements are needed for the capital improvement. Thus, they are part of the capital improvement and are exempt from tax. The scaffold provider must receive a copy of the completed certificate of capital improvement issued by the customer to the contractor. Also, the initial purchase of materials by the service provider is still subject to tax. Scaffolding systems used for ordinary property repair and maintenance, such as painting, remain taxable.

http://www.tax.ny.gov/pdf/memos/sales/m14_15s.pdf


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 Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...

Sales by Charitable Organizations Generally Exempt in...

Friday, May 11th, 2018 -The Arkansas Department of Finance and Administration recently addressed the taxability of sales made by a non...

Credit Card Convenience Fees Taxable in New York

Wednesday, May 9th, 2018 -The New York Department of Taxation and Finance recently ruled that convenience fees for credit card purchases...

Farming Exemption Does Not Apply to Residential Gardening...

Monday, May 7th, 2018 -The Arkansas Department of Finance and Administration ruled that a utility vehicle used for residential garden...