New York State Says Lighting Design Services Subject to State Sales Tax

From a recent email from the International Association of Lighting Designers (IALD):

Please be advised that the State of New York has determined that the lighting design services that our members typically provide to customers are subject to sales tax in New York.

The Department’s conclusion applies to ANY lighting design firm providing services in New York, whether headquartered within the state of New York or any other jurisdiction, foreign or domestic.

The Department’s conclusion is based on the interpretation of an existing Tax Law, § 1105(c)(7) as it pertains to imposing sales tax on receipts from the sale of interior decorating and designing services. Interior design services are defined in the Advisory Opinion as “designs for the interior of a building,” and are inclusive of lighting design services.

At this time, lighting design services rendered for exterior spaces are not impacted by this ruling.

The IALD is working in consultation with international tax consulting firm Grant Thornton to supply our members with information associated with this ruling, and how it may impact your business practices. At present, our information suggests that there is no chance of achieving reversal of the Advisory Opinion. We will continue to keep you informed of developments related to this issue.

Click here (PDF) to read a copy of the recent New York State Department of Taxation and Finance Advisory Opinion.

Craig DiLouie

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