N.Y. Comp. Codes R. & Regs. tit. 20 § 45.8

Current through Register Vol. 46, No. 45, November 2, 2024

Section 45.8 - Interstate and foreign commerce

(a) As originally enacted there was no express provision in the law taxing or exempting receipts from sales made or services rendered in interstate or foreign commerce. However, by the 1951 legislative revision of highway taxes, the statute was amended to define gross income and gross operating income to include "receipts * * * from all transportation whether originating, terminating or traversing this state, by omnibuses having a seating capacity of more than seven persons, allocated on the basis of mileage within and without this state, * * *" Consequently, such allocated receipts from interstate or foreign transportation by omnibus are subject to tax.

(b) Irrespective of whether the receipts from sales made or services rendered in interstate or foreign commerce are taxable, the total receipts should be included in gross income on the return and a deduction taken with a proper explanation for all or any portion thereof not subject to tax.

Question 34:A utility in Binghamton, N. Y., furnishes service to a consumer in Pennsylvania. Are the receipts from such a sale taxable? Answer: No. The receipts should be included in gross income on the return, but a deduction therefor should be taken.

Question 35:An omnibus operator charges $8.68 for transporting a passenger from Albany, New York to Washington, D. C., or from Washington, D. C. to Albany, New York. The distance traveled on either trip is 400 miles of which 150 miles is traveled in New York State. Is any portion of the $8.68 taxable? Answer: Yes. The portion taxable is $3.26 computed as follows:

(150/400) x $8.68 = $3.26

Question 36:An omnibus operator charges six dollars for transporting a passenger between points A and B, both of which are located in New York State, or six dollars for transporting a passenger between points C and D, both of which are located outside New York State. The total mileage traveled on either trip is 300 miles of which 250 miles is traveled in New York State. Is any portion of the six dollars taxable? Answer: Yes. The portion taxable is five dollars computed as follows:

(250/300) x $6 = $5

N.Y. Comp. Codes R. & Regs. Tit. 20 § 45.8