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The New York City Lighting Council is an information source and champion for issues involving the use of lighting in and about the New York Cityscape. The Council provides web-based resources for the public, and serves as a forum and reference for lighting professionals.

NYCLC is founded and managed by the New York City Section of the IES.

NY Sales Tax and Lighting Design Services:

- updated 14 April 2012

The New York State Department of Taxation and Finance has recently updated thier ruling that Lighting Design services are subject to New York State Sales Tax.  (NYS Tax Bulletin ST-400, Updated June 2, 2011)  Read More

 

Summary of Ruling:

 

  • lighting design services now clearly defined as interior decorating and design services generally relate to the planning and design of interior spaces.
  • drawings, plans, renderings, and other interior lighting design services sold to a licensed architect or engineer are taxable.
  • services are taxable when delivered to NY based owners, architects, and engineers.
  • services are taxable when delivered  to projects located within NY.

 
 

October 2009 NY Advisory Opinion:

 

  • This "NY Advisory Opinion" is not a new law, nor does this "opinion" define an official start date. However, the IALD recently accounced that the NYS Department of Taxation and Finance has officially committed not to seek payment of sales or use taxes on lighting design services for periods prior to 1 December 2009.  Lighting designers working in New York should continue to collect sales tax from their clients for work on building interiors, per the 15 October 2009 Advisory Opinion, for all work billed after 1 December 2009.  Read More

 

 

 

 

Suggestion:  File for a Certificate of Authority from the Tax Department as soon as possible. This certificate gives your business the authority to collect the required sales and use taxes, to issue or accept sales tax exemption documents, including resale certificates used for purchasing inventory, and may protect you from getting audited back further than three years.   If your business makes taxable sales before it receives the Certificate of Authority, it may be subject to substantial penalties. (Application to register for a Sales Tax Certificate of Authority is Form DTF-17.)

  

Architectural Lighting Design Services when performed under agreement with out of state based architects, engineers, interior designers, and/or owners, may be subject to their states tax code. Consult with your accountant or tax preparer for out of state tax codes.

 

FAQ:

 

Do I need to charge NY sales tax for interior lighting design services? 

Yes. Taxpayer’s receipts for providing lighting design services to NY cleints are subject to sales tax as interior decorating and designing services.  NY Tax Law Section 1105(c)(7) imposes a sales tax on interior decorating and designing services.

 

To view NY Tax Law 1105(c)(7), submit a search Click Here

- submit “Tax Law 1105” in the search window. Click on the result “Tax Law § 1105- Imposition of Sales Tax”.  Refer to paragraph C, Item 7.

  

 

Do I need to charge NY sales tax for exterior lighting design services? 

No. NY Tax Law Section 1105(c)(7) imposes a sales tax on lighting design services for interior projects only, therefore exterior projects are exempt from sales tax.  Consult with your accountant or tax preparer for current status of project exemptions.

 

 

Are NY Non-Profit clients exempt on sales tax for lighting design services? 

Yes. Taxpayer’s receipts for providing lighting design are tax exempt if your agreement is directly with a non-profit or tax exempt organization.  Tax exempt certificates from the non-profit or tax exempt organization will be required for verification and filling.  Consult with your accountant or tax preparer for additional form requirements.

 

 

What is considered “lighting design services”?

The New York State Department of Taxation and Finance has determined all lighting design services in the practice of interior decorating and design is taxable.  Services include, but not limited to the following:

- the preparation of  lighting fixture layouts

- the recommendation of lighting fixtures

- the execution of technical lighting level calculations

- the preparation of technical specifications for lighting and control systems

- the assistance to an electrical engineer

 

Read more about “What is Taxable” on the New York State Department of Taxation and Finance website

 

 

How much tax do I charge for lighting design services?

Current sales tax rates are posted on the New York State Department of Taxation and Finance website.  Sales tax rates vary between NY City, State, and County based clients. Consult with your accountant or tax preparer for current sales tax rates.

 

View Locality Rates on the NY Department of Taxation and Finance website