Taxation

Monday, May 17, 2010 09:57 AM

Although residential energy sources and services are not subject to the 4% New York State sales and use tax, some counties and cities impose local sales and use tax (effective September 1, 2009). There will be changes to some of these tax rates effective June 1, 2010.

Residential energy sources and services include the following used for residential purposes:

-   Natural gas
-   Propane (sold in containers of 100 pounds or more)
-   Electricity
-   Steam
-   Gas, electric and steam services
-   Fuel oil (except diesel motor fuel)
-   Coal
-   Wood (for heating purposes only)

The local sales tax rates that will be imposed on the above residential energy sources and services effective June 1, 2010 will be as follows:

Nassau – 0% (previously 2 ½ %)
New York City – 4 ½ % (no change)
Suffolk – 2 ½ % (no change)

Also, some school districts are authorized to impose sales and use tax on the following:

-   Natural gas
-   Propane (in containers of 100 pounds or more)
-   Electricity
-   Steam
-   Gas, electric and steam services

Although Nassau County exempted residential energy sources and services from their local tax effective June 1, 2010, sales within the Glen Cove and Long Beach School Districts will be subject to a tax at the rate of 3% (previously 5 ½ %).

For information on other jurisdictions and the school districts imposing sales and use tax, see Publication 718-R at http://www.tax.state.ny.us/pdf/publications/sales/pub718r_510.pdf

Last Updated on Monday, May 17, 2010 10:03 AM