NYC Local Tax Raised 0.5% to 4.5%, Effective 8/1
NYC local taxes changed on 8/1 to 4½%. Notes:
- Mayor’s proposal to charge the sales tax on ESCo charges and raise $83 million dollars was passed by the City Council in June
- New taxes for NYC go to the state legislature as well, known as a ‘home rule’.
KED
- In KED, ESCo’s have to calculate a 4 1/2% tax on charges and submit them for bill presentation as a separate line item.
- In KED POR program, KED purchases this tax along with the rest of charges.
- In KED POR, ESCo’s remit full tax amount to proper taxing authority.
ConEd
- In ConEd, the new tax is for both gas and electric.
- As in the past, Con Ed will buy the new NYC local taxes receivables as part of POR
- In ConEd, ESCO’s need to send in an 814 Change file to change the tax rate (use AMT*9M)
- As in the past, the ESCO is responsible for reporting and paying taxes to appropriate tax agency.
Miscellaneous
- If the meter is read on or after August 1, 2009, and the number of days from August 1, 2009, to the date of the meter reading is more than half the total number of days covered by the bill, report sales of these services at the new residential rate of 4½% or the nonresidential rate of 8 7/8%. If the meter is read on or after August 1, 2009, and the number of days from August 1, 2009, to the date of the meter reading is more than half the total number of days covered by the bill, any sales of the services of transporting, transmitting, distributing, or delivering gas or electricity, even if made by someone other than the vendor of the gas or electricity, must be reported at the new rate of 4½%.
Related Resources:
PSC Notice: http://www.tax.state.ny.us/pdf/notices/n09_12.pdf