Sales Tax on Credit Services

NYC Admin. Code tit. 11, ch. 20, subch. 3

in effect

NYC Admin. Code § 11-2039 Definitions.

§ 11-2039 Definitions. (a) "Person" includes an individual, partnership, society, association, joint-stock company, corporation, estate, receiver, trustee, assignee, referee, and any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of the foregoing. (b) When used in this subchapter for the purposes of the taxes imposed by this subchapter, the following terms shall mean: (1) "Purchaser." A person who purchases property or to whom are rendered services, the receipts from which are taxable under this subchapter. (2) "Receipt." The amount of the sale price of any property and the charge for any service taxable under this subchapter, valued in money, whether received in money or otherwise, including any amount for which credit is allowed by the vendor to the purchaser, without any deduction for expenses or early payment discounts, but excluding any credit for tangible personal property accepted in part payment and intended for resale. (3) "Sale." Any transfer of title or possession or both, exchange or barter, rental, lease or license to use or consume, conditional or otherwise, in any manner or by any means whatsoever for a consideration, or any agreement therefor, including the rendering of any service, taxable under this subchapter, for a consideration or any agreement therefor. (4) "Vendor." A person making sales of tangible personal property or services, the receipts from which are taxed by this subchapter. (5) "Tax commission." Tax commission of the state of New York. (6) "Tax law." Tax law of the state of New York.

NYC Admin. Code § 11-2040 Imposition of tax.

§ 11-2040 Imposition of tax. (a) There is hereby imposed within the city and there shall be paid a tax at the rate of four and one-half percent upon the receipts from every sale, except for resale, of the following services, provided, however, that the tax hereby imposed shall not be imposed after November thirtieth, two thousand twenty-nine, on receipts from sales of the services specified in paragraph one of this subdivision: 1. Credit rating and credit reporting services, including, but not limited to, those services provided by mercantile and consumer credit rating or reporting bureaus or agencies, whether rendered in written or oral form or in any other manner, except to the extent otherwise taxable under article twenty-eight of the tax law. 2. [Repealed.] 3. [Repealed.] (b) Wages, salaries and other compensation paid by an employer to an employee for performing as an employee the services described in subdivision (a) of this section are not receipts subject to the taxes imposed by such subdivision. (c) Any taxes imposed by this subchapter are in addition to any other tax which the city may impose or may be imposing pursuant to any law. (Am. 2017 N.Y. Laws Ch. 61, 6/29/2017, eff. 6/29/2017; Am. 2020 N.Y. Laws Ch. 58, 4/3/2020, eff. 4/3/2020; Am. 2023 N.Y. Laws Ch. 345, 8/23/2023, eff. 8/23/2023; Am. 2026 N.Y. Laws Ch. 127, 6/5/2026, eff. 6/5/2026) Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1989/061 and L.L. 2003/035.

NYC Admin. Code § 11-2041 Transitional provisions.

§ 11-2041 Transitional provisions. The taxes imposed under paragraph one of subdivision (a) of section 11-2040 of this subchapter shall be paid with respect to receipts from all sales of services on or after September first, nineteen hundred seventy-five although rendered or agreed to be rendered under a prior contract. Where a service is sold on a monthly, quarterly, yearly or other term basis, the charge for such service shall be subject to tax under this subchapter to the extent that such charge is applicable to any period on or after September first, nineteen hundred seventy-five, and such charge shall be apportioned on the basis of the ratio of the number of days falling within such period to the total number of days in the full term or period. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1989/061.

NYC Admin. Code § 11-2042 Exempt organizations.

§ 11-2042 Exempt organizations. Except as otherwise provided in this section, any sale by or to any of the following shall not be subject to the taxes imposed by this subchapter: (1) The state of New York, or any of its agencies, instrumentalities, public corporations (including a public corporation created pursuant to agreement or compact with another state or Canada) or political subdivisions where it is the purchaser, user or consumer, or where it is a vendor of services or property of a kind not ordinarily sold by private persons; (2) The United States of America, and any of its agencies and instrumentalities, insofar as it is immune from taxation where it is the purchaser, user or consumer, or where it sells services or property of a kind not ordinarily sold by private persons; (3) The United Nations or any international organization of which the United States of America is a member where it is the purchaser, user or consumer, or where it sells services or property of a kind not ordinarily sold by private persons; (4) Any corporation, association, trust, or community chest, fund or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office; (5) A post or organization of war veterans, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization: (A) organized in this state, (B) at least seventy-five percent of the members of which are war veterans and substantially all of the other members of which are individuals who are veterans (but not war veterans) or are cadets, or are spouses, widows or widowers of war veterans or such individuals, and (C) no part of the net earnings of which inures to the benefit of any private shareholder or individual.

NYC Admin. Code § 11-2043 Refunds or credits based on proof of certain uses.

§ 11-2043 Refunds or credits based on proof of certain uses. A refund or credit equal to the amount of the sales or compensating use tax imposed by section eleven hundred seven of the tax law or by section 11-2001 of this chapter, as the case may be, and paid on the sale or use of tangible personal property which is later used by such purchaser in performing a service subject to tax under this subchapter shall be allowed such purchaser against the tax imposed by this subchapter and collected by such person on the sale of such services if such property has become a physical component part of the property upon which the service is performed or has been transferred to the purchaser of the service in conjunction with the performance of the service subject to tax; provided, however, that any such refund or credit shall be without interest.

NYC Admin. Code § 11-2044 Administration and collection.

§ 11-2044 Administration and collection. The taxes imposed by section 11-2040 of this subchapter shall be administered and collected by the tax commission in the same manner as the taxes imposed by article twenty-eight of the tax law are administered and collected by such commission. All of the provisions of such article relating to or applicable to the administration and collection of the taxes imposed by that article shall apply to the taxes imposed by this subchapter, including sections eleven hundred one, eleven hundred eleven, and sections eleven hundred thirty-one through eleven hundred forty-seven, with the same force and effect as if those provisions had been incorporated in full into this subchapter and had expressly referred to the taxes imposed by this subchapter, except as otherwise provided in section twelve hundred fifty of the tax law. For purposes of this subchapter, the term "tax" in part IV of such article twenty-eight shall include the taxes imposed by this subchapter.

NYC Admin. Code § 11-2045 Deposit and disposition of revenue.

§ 11-2045 Deposit and disposition of revenue. (a) The tax commission shall deposit daily to the credit of the comptroller of the state of New York, all taxes, penalties and interest collected under this subchapter in such responsible banks, banking houses or trust companies as may be designated by the comptroller. Such deposits shall be kept in trust for the city and separate and apart from all other monies in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the revenue collected under this subchapter the comptroller shall retain in his or her hands such amount as the commissioner of taxation and finance of the state of New York may determine to be necessary for refunds under this subchapter and for reasonable costs of the tax commission in administering, collecting and distributing the taxes under this subchapter, out of which the comptroller shall pay any refunds made under the provisions of this subchapter. The comptroller, after reserving such refund fund and such costs, shall on or before the twelfth day of each month, pay to the commissioner of finance of this city all taxes, interest and penalties collected under this subchapter and remaining to the comptroller's credit in such banks, banking houses or trust companies at the close of business on the last day of the preceding month, provided, however, that the comptroller shall on or before the last day of June and December make a partial payment consisting of the collections made during and including the first twenty-five days of said months to the commissioner of finance of this city. The amount so payable shall be certified to the comptroller by the president of the tax commission or such president's delegate, who shall not be held liable for any inaccuracy in such certificate. Where the amount so paid over in any such distribution is more or less than the amount then due to this city, the amount of the overpayment or underpayment shall be certified to the comptroller by the president of the tax commission or such president's delegate, who shall not be held liable for any inaccuracy in such certificate. The amount of the overpayment shall be so certified to the comptroller as soon after the discovery of the overpayment or underpayment as reasonably possible and subsequent payments and distributions by the comptroller to this city shall be adjusted by subtracting the amount of any such overpayment from or by adding the amount of any such underpayment to such number of subsequent payments and distributions as the comptroller and the president of the state tax commission shall consider reasonable in view of the amount of the overpayment or underpayment and all other facts and circumstances. (b) All payments to the commissioner of finance pursuant to subdivision (a) of this section shall be credited to and deposited in the general fund of this city, but no part of such revenues may be expended unless appropriated in the annual budget of this city. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1989/061.

NYC Admin. Code § 11-2046 Construction and enforcement.

§ 11-2046 Construction and enforcement. This subchapter shall be construed and enforced in conformity with articles twenty-eight and twenty-nine of the tax law of the state of New York pursuant to which it is enacted.

NYC Admin. Code § 11-2047 Effective date.

§ 11-2047 Effective date. This subchapter shall take effect September first, nineteen hundred seventy-five except that certificates of registration may be filed with the state tax commission and certificates of authority to collect tax may be issued by the state tax commission prior to such date.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-14890Fetched: 10/24/2026