N.Y. Tax Law § 1106: Transitional provisions

§ 1106. Transitional provisions. (a) The taxes imposed under

subdivisions (a), (c) and (d) of section eleven hundred five shall be

paid upon all sales made and services rendered on or after August first,

nineteen hundred sixty-five although made on or rendered under a prior

contract, except as provided in section eleven hundred nineteen, and

except that a delivery or transfer of possession of tangible personal

property made after said date pursuant to an agreement for the sale of

said property made before April first, nineteen hundred sixty-five shall

not be subject to tax if: (1) such agreement for the sale of said

property was made in writing, (2) the particular item or items of

property so sold or agreed to be sold were segregated, before April

first, nineteen hundred sixty-five, from any other similar property in

the possession of the vendor and identified as having been appropriated

to such sale or agreement of sale, and (3) the purchaser, before August

first, nineteen hundred sixty-five shall have paid to the vendor not

less than ten percent of the sale price of said property.

(b) The tax imposed under subdivision (b) of section eleven hundred

five shall be paid with respect to receipts for property or services

sold on or after August first, nineteen hundred sixty-five although made

under a prior contract. Where property or service is sold on a monthly,

quarterly or other term basis and the bills for such property or service

are based on meter readings, the amount received on each bill for such

property or service for a month or other term shall be a receipt subject

to the tax, but such tax shall be applicable to all bills based on

meters read on or after August first, nineteen hundred sixty-five only

where more than one-half of the number of days included in the month or

other period billed are days subsequent to July thirty-first, nineteen

hundred sixty-five; provided, however, that where such bills are for

telephone or telegraph service the tax shall apply to all receipts on

such bills dated on or after August first, nineteen hundred sixty-five,

for which no previous bill was rendered, excepting, however, charges for

services furnished before the date of the first of such bills.

(c) The tax imposed under subdivision (e) of section eleven hundred

five shall be paid upon any occupancy on and after August first,

nineteen hundred sixty-five, although such occupancy is pursuant to a

prior contract, lease or other arrangement. Where rent is paid on a

weekly, monthly or other term basis, the rent shall be subject to the

tax imposed under such subdivision (e) to the extent that it covers any

period on and after August first, nineteen hundred sixty-five and such

rent shall be apportioned on the basis of the ratio of the number of

days falling within said period to the total number of days covered

thereby.

(d) Except as otherwise hereinafter provided, the tax imposed under

subdivision (f) of section eleven hundred five shall be applicable to

any admission to or the use of facilities of a place of amusement

occurring on or after August first, nineteen hundred sixty-five, whether

or not the admission charge has been paid prior to such date, unless the

tickets were actually sold and delivered (other than for resale) prior

to August first, nineteen hundred sixty-five to a person attending the

performance occurring on or after such date.

(e) A refund or credit equal to the amount of the sales or

compensating use tax paid on the sale or use of tangible personal

property, under a local law, ordinance or resolution imposed pursuant to

the authority of chapter eight hundred seventy-three of the laws of

nineteen hundred thirty-four, as amended, or chapter two hundred

seventy-eight of the laws of nineteen hundred forty-seven, as amended,

shall be allowed, upon application to the tax commission as provided for

herein, where such property has been used by the purchaser or user in

performing the services subject to tax under paragraphs (1), (2), (3)

and (5) of subdivision (c) of section eleven hundred five and such

property has become a physical component part of the property upon which

the services are performed or has been transferred to the purchaser of

the service in conjunction with the performance of the service subject

to tax, except that such refund or credit may not exceed the combined

state and local taxes, if any, paid, pursuant to this article and under

a tax imposed pursuant to the authority of article twenty-nine of this

chapter, on the sale or use of the service in connection with which such

property was used. Any refund or credit under this subdivision shall be

paid out of or charged against the sales and use tax revenues derived

from the taxes imposed under this article and pursuant to the authority

of article twenty-nine of this chapter in the same proportion as the

respective rates of such state and local taxes bear to the combined rate

of both such taxes. The amount to be paid out of or charged against

sales and use tax revenues of localities derived from the taxes imposed

pursuant to the authority of article twenty-nine of this chapter shall

be paid out of or charged against such revenues of the locality which

imposes the tax on the sale or use of the service in connection with

which such property was used. An application for the refund or credit

provided for herein may not be made until the tax on the sale or use of

the service has been reported to the tax commission in the return of the

vendor or the return of the customer, where such return is required, and

such application must be made within three years of the time such tax

was payable to the tax commission. Where an application for credit has

been filed, the applicant may immediately take such credit on the return

which is due coincident with or immediately subsequent to the time that

he files his application for credit. However, the taking of the credit

on the return shall be deemed to be part of the application for credit.

The procedure for granting or denying such applications for refund or

credit and review of such determinations shall be as provided in

subdivision (b) of section eleven hundred thirty-nine. No interest shall

be allowed or paid upon any refund made or credit allowed pursuant to

this subdivision.

(f) With respect to the additional tax of one percent imposed

effective April first, nineteen hundred sixty-nine, the provisions of

subdivisions (a), (b), (c), (d) and (e) of this section apply, except

that for the purposes of this subdivision, all references in said

subdivisions (a), (b), (c) and (d) to August first, nineteen hundred

sixty-five shall be read as referring to April first, nineteen hundred

sixty-nine, all references in said subdivision (a) to April first,

nineteen hundred sixty-five shall be read as referring to December

first, nineteen hundred sixty-eight, and the reference in said

subdivision (b) to July thirty-first, nineteen hundred sixty-five shall

be read as referring to March thirty-first, nineteen hundred sixty-nine.

Nothing herein contained shall be deemed to exempt from tax at the rate

in effect prior to April first, nineteen hundred sixty-nine any

transaction which may not be subject to the additional tax imposed

effective on that date.

(g) With respect to the additional tax of one percent imposed

effective June first, nineteen hundred seventy-one, the provisions of

subdivisions (a), (b), (c), (d) and (e) of this section apply, except

that for the purposes of this subdivision, all references in said

subdivisions (a), (b), (c) and (d) to August first, nineteen hundred

sixty-five shall be read as referring to June first, nineteen hundred

seventy-one, all references in said subdivision (a) to April first,

nineteen hundred sixty-five shall be read as referring to February

first, nineteen hundred seventy-one, and the reference in said

subdivision (b) to July thirty-first, nineteen hundred sixty-five shall

be read as referring to May thirty-first, nineteen hundred seventy-one.

Nothing herein contained shall be deemed to exempt from tax at the rate

in effect prior to June first, nineteen hundred seventy-one any

transaction which may not be subject to the additional tax imposed

effective on that date.

(h) With respect to the tax imposed under subdivision (a) of section

eleven hundred five on retail sales of floor covering, such as carpet,

carpet padding, linoleum and vinyl roll flooring, carpet tile, linoleum

tile and vinyl tile, made on or after the effective date of this

subdivision, the tax imposed under subdivision (c) of section eleven

hundred five on the service of installing floor covering rendered on or

after such effective date and the compensating use tax imposed under

section eleven hundred ten on taxable uses of floor covering occurring

on or after such effective date, the provisions of subdivision (a) of

this section apply, except that for the purposes of this subdivision,

all references in said subdivision (a) to August first, nineteen hundred

sixty-five, shall be read as referring to the effective date of this

subdivision and all references in said subdivision (a) to April first,

nineteen hundred sixty-five, shall be read as referring to the date four

months prior to such effective date. Nothing herein contained shall be

deemed to change the taxable status of any sale or use which occurred or

service which was rendered prior to such effective date.

(i) The taxes imposed under paragraph five of subdivision (c) of

section eleven hundred five with respect to interior cleaning and

maintenance services performed on a regular contractual basis for a term

of not less than thirty days and under paragraphs six through eight of

such subdivision shall be paid with respect to receipts from all sales

of services rendered after May thirty-first, nineteen hundred ninety,

although rendered under a prior contract.

(j) (i) The tax imposed under subparagraph (i) of paragraph nine of

subdivision (c) of section eleven hundred five shall be paid with

respect to receipts from all sales of services rendered after August

thirty-first, nineteen hundred ninety, although rendered under a prior

contract. Nothing herein contained shall be deemed to change the taxable

status of any service which was rendered prior to September first,

nineteen hundred ninety.

(ii) The tax imposed under subparagraph (ii) of paragraph nine of

subdivision (c) of section eleven hundred five shall be paid with

respect to the furnishing or provision of services after August

thirty-first, nineteen hundred ninety-three, although furnished or

provided under a prior contract.

(l) The tax imposed by paragraph ten of subdivision (c) of section

eleven hundred five of this part must be paid with respect to receipts

from all sales of services on or after the effective date of such

paragraph 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 the service will be subject to the tax

imposed by that paragraph to the extent that the charge is applicable to

any period on or after the date the tax becomes effective, and the

charge must be apportioned on the basis of the ratio of the number of

days falling within the period to the total number of days in the full

term or period.