Does anyone know if Home Inspectors should collect sales tax in New York?
No, never had to.
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Not for a home inspection that is part of a real estate transaction. Not sure about inspections that aren’t directly tied to a transaction though.
In the past I have been advised it depends on service performed and for whom you are doing it for i.e. the seller or buyer or if you are just performing a radon test just because the owner would like one. A scenerio given was if you perform service for a seller you should be charging tax and if for the buyer you would not. I however do not know if anybody actually follows this sort of rule.
I’ve never heard of anyone in NY collecting sales tax for an inspection.
As always you should be consulting with an accountant on what is correct in your area. It is my understanding that when performing an inspection for the buyer no sales tax is collected, when providing an inspection for the seller sales tax is collected.
PA has a Sales Tax on Services
As my Accountant told me many years ago, Opinions are NOT Taxable…
In the early stages of getting setup, what’s your input on NYS Sales Taxes? I heard most say never and other say yes on the seller/owner only.
When I set up my business in 2002 and went to the NY State Tax Office to get the company registered with them I was told that Home Inspection is an “Intellectual Property” and therefore not taxable.
Tom, thanks… Does that go for all add ons, like radon and pests?
Yes no sales tax on any of that
After discussing with accountant and NYS rep at 518-485-2889 (8:30 a.m. – 4:30 p.m.), inspection report services are taxed as listed below:
Owner/Leasee - Taxable
Buyer/Agent - Not Taxable
Any Govt Mandated - Not Taxable
Refs:
TSB-A-90 (12)S a90_12s.pdf (13.1 KB)
TSB-A-98(82)S a98_82s.pdf (39.9 KB)