Tax News

CCH (cch.taxgroup.com) reports:

  The New York Department of Taxation and Finance has postponed the effective date of the previously announced reversal of its position that a sales tax vendor who sells or rents motor vehicles could use an exempt use certificate when purchasing parking services.  Originally, the effective date of this change was to be September 1, 2008. However, in order to allow a reasonable time for vendors of parking services to implement this change, the effective date of this change is postponed until January 1, 2009. Therefore, vendors of parking services will be required to collect sales tax from vendors who sell or rent motor vehicles on charges made for parking, garaging, or storing motor vehicles beginning January 1, 2009.

  In addition, the Department will not assess sales tax for periods prior to January 1, 2009, if a vendor of parking services accepted a properly completed exemption certificate based upon the information provided in TSB-M-91(7)S, provided the vendor begins collecting sales tax on those services beginning January 1, 2009.

  Subscribers to CCH Tax Research NetWork can view the memorandum.

TSB-M-08(4.1)S, Office of Tax Policy Analysis, Taxpayer Guidance Division, New York Department of Taxation and Finance, August 14, 2008.