New York City Increases Sales Tax Rate on Gas and Electricity

nyc-battery-park2On July 13, 2009 the New York State Senate passed A.B. 8615, A.B 8866, and A.B. 8867, which modify the New York City sales tax code. Effective August 1, 2009, the New York City sales tax rate increased from 4.0% to 4.5%. The combined state and local sales tax rate effective in New York City has increased from 8.375% to 8.875%. This rate includes the 4.0% state tax rate, the 0.375% Metropolitan Commuter Transportation District tax, and the 4.5% city sales tax. Furthermore, all revenues related to transportation and delivery charges of electricity and gas commodities are subject to the 4.5% city tax rate, even if purchased from an Energy Services Company (ESCO). The new tax rate applies if the meter is read on or after August 1, 2009, and more than half the days covered by the bill occur after August 1, 2009.

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