N.Y. Comp. Codes R. & Regs. tit. 20 § 541.13

Current through Register Vol. 46, No. 50, December 11, 2024

Section 541.13 - Retailers engaged in contracting

(a) Retailers, such as department stores, when installing tangible personal property which constitute a capital improvement to real property of their customer are acting as contractors.

(b) Retailers when installing tangible personal property which constitute a capital improvement are liable for the use tax based upon their cost for the property at the State and local rate in effect in the jurisdiction where the tangible personal property is installed.

Example:A retailer with a hardware and plumbing department, sells hot water tanks with or without installation. When the tank is sold, installed by the retailer and the customer presents a properly completed certificate of capital improvement to the retailer, the retailer is acting as a contractor and is liable for the compensating use tax based upon its cost for the tank. The retailer must report the cost of the hot water tank as a purchase subject to use tax on its sales tax return.

Cross-reference:For retailers who manufacture the tangible personal property installed, see section 541.11(c) of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 541.13