N.Y. Comp. Codes R. & Regs. tit. 20 § 45.4
The law provides that there shall be included in gross income, receipts from sales made and services rendered for ultimate consumption or use in this State by the purchaser.
Question 9:
What is meant by sales made and services rendered? Answer: In general, it means sales of gas, electricity, steam, water, refrigeration, telephony or telegraphy when delivered through mains, pipes or wires, sales of merchandise which are part of stock in trade, charges for transportation of passengers and goods, toll charges, and service charges such as charges for installation and moving of telephones and for the delivery of messages.
Question 10:
A street surface railroad purchases electric current and resells some of it. Are receipts of the railroad from the sale of such current subject to the tax? Answer: Yes. It is a seller of electric current.
Question 11:
A telegraph company makes a separate charge for messenger service in connection with the sending and delivery of telegrams. Are receipts from this service subject to the tax? Answer: Yes.
Question 12:
A telegraph company transmits money by wire. Its charges include an amount for the transmission of the message, and an amount for the banking service. Is the total amount of such charges subject to the tax or only that part which represents the charge for transmitting the message? Answer: The total amount is subject to the tax. The banking element of the transaction is a service rendered.
Question 13:
An electric company extends its lines to new consumers, receiving contributions on account of the cost of the extension and retaining title thereto. Are such contributions receipts from sales made or services rendered? Answer: No.
Question 14:
In the preceding question, if the electric company allows the contributions or part thereof as a credit on monthly bills for services rendered, is the credit allowed to be included in gross income subject to tax? Answer: Yes.
Question 15:
Are charges for telephone directory listings required to be included in gross income subject to tax? Answer: Yes.
Question 16:
Are charges for installation and for change of location of telephones required to be included in gross income subject to tax? Answer: Yes.
Question 17:
A bus company, which is subject to the supervision of the State Department of Public Service, operates buses on franchise routes and on routes where a franchise is not required. Are the receipts from both kinds of operation required to be included in gross income subject to tax? Answer: Yes.
Question 18:
In case a bus company charters a bus, furnishing the driver, gas, etc., are the receipts to be included in gross income of the bus company? Answer: Yes.
Question 19:
What sales of merchandise are to be considered? Answer: Sales of merchandise which constitute a part of the stock in trade of a utility, such, for instance, as sales of electric appliances by an electric corporation and sales of gas appliances and residuals or by-products by a gas corporation.
Question 20:
If an electric corporation sells a customer a new electric range for $250 and allows a credit of $50 for a coal range turned in by the customer, how much is required to be included in gross income subject to tax? Answer: $250.
Question 21:
If a utility sells merchandise to its employees at cost, is the sales price to be included in gross income subject to tax? Answer: Yes.
Question 22:
A utility renders a bill to a consumer showing the gross amount due to be $4.00, but stating that, if payment is made within 30 days, $3.69 will be accepted in full settlement. The consumer pays the net amount of $3.69. How much should be included by the utility in gross income? Answer: $3.69.
Question 23:
Are receipts from sales or services to the State, its municipalities, political and civil subdivisions of the State or municipality, public districts, and charitable and religious institutions required to be included in gross income subject to tax? Answer: Yes.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 45.4