Does a sub-subcontractor sorting World Trade Center debris for the NYPD owe sales tax on its equipment, rentals, and consumables, even though its ultimate customer is a tax-exempt government agency?

Plain-English summary

MARCOR Remediation performed forensic debris screening at the Fresh Kills landfill from September 2001 through December 2002, sifting through World Trade Center attack debris for evidentiary materials to help investigators and identify victims. MARCOR worked as a subcontractor to Garner Environmental Services, which held the actual contract with the New York City Police Department. MARCOR didn't transport debris or perform investigations itself — just the sorting/screening work — and along the way it rented equipment, bought tires and maintenance parts for that equipment, and purchased consumables like Tyvek suits and respirators.

New York State, its agencies, and its political subdivisions (like the NYPD) are exempt from sales tax on their own purchases — but that exemption doesn't automatically flow down through a whole chain of subcontractors. The Department found nothing in the Garner-NYPD contract actually appointed Garner (let alone MARCOR, several tiers removed) as the city's purchasing agent; general contract language about the state/city being exempt when it's the actual purchaser doesn't transform every subcontractor's own equipment purchases into tax-exempt government purchases. Since MARCOR's equipment, rentals, and consumables were used and consumed by MARCOR itself in performing its subcontract — not transferred to or incorporated into any property owned by the NYPD — they don't qualify for the government exemption or the separate contractor exemption for work on exempt organizations' real property (which requires the property to become an integral component of the exempt entity's building or land). So MARCOR owes tax on all of that. But the debris-screening work itself is legally just "sorting" — the same category of service the Department has already ruled nontaxable for sorting mail by zip code or classifying radioactive waste — and sorting was never added to New York's enumerated taxable-services list, so MARCOR's charges to Garner for the screening work itself are not subject to sales tax.

What this means for you

Subcontractors working several tiers down from a government agency

Being part of a chain that eventually serves a tax-exempt government customer doesn't make your own equipment and supply purchases tax-exempt. The exemption belongs to the actual governmental purchaser (or a contractor formally appointed as its purchasing agent) — general contract language reciting that "purchases by the state are exempt" doesn't extend that exemption down through every subcontractor unless there's a genuine, documented agency appointment reaching that far.

Contractors and subcontractors performing sorting, screening, or classification work

Pure sorting/screening/classification services — determining what something is or how to categorize it, without repairing, installing, or transforming it — generally fall outside New York's enumerated taxable services and aren't subject to sales tax, regardless of how specialized or sensitive the material being sorted is (debris, radioactive waste, mail).

Businesses relying on a general contractor's tax-exempt customer to shield their own purchases

Get your own documentation. A signed agency-contract designation specifically naming your business as the government's purchasing agent — not just a reference elsewhere in the prime contract to the government's general exempt status — is what's needed to extend the government exemption to a subcontractor's own equipment and supply purchases.

Common questions

Q: If our ultimate customer is a tax-exempt government agency, are all our subcontractor purchases automatically tax-exempt too?
A: No — the exemption applies to the government's own purchases (or a contractor's purchases made as the government's properly appointed agent), not automatically to every subcontractor down the chain. You need documentation specifically establishing an agency relationship reaching your business.

Q: Is a sorting or screening service taxable in New York?
A: Generally no — sorting/classification services (whether sorting mail, waste, or debris) aren't among New York's enumerated taxable services, so charges purely for that kind of work aren't subject to sales tax.

Q: Does equipment used on a government job site automatically qualify for the contractor/subcontractor real-property exemption?
A: No — that exemption only covers tangible personal property that becomes an integral, permanent component of the exempt entity's actual building or land. Equipment, tools, and consumables that the contractor merely uses and consumes (not incorporated into government-owned real property) remain taxable.

Citations and references

Statutes and rules:

• Tax Law § 1101(b)(1), (4) (purchase at retail; contractor-purchase special rule)
• Tax Law § 1105(a), (c) (retail sales tax; enumerated services)
• Tax Law § 1115(a)(15), (16) (contractor exemption for exempt-organization real property)
• Tax Law § 1116(a)(1) (governmental entity exemption)
• 20 NYCRR 526.3, 526.6 (purchase at retail; contractor special rule); 529.2, 529.7(h) (governmental/exempt-organization purchaser requirements); 541.2(c), 541.3 (agency contracts, documentation); 541.9 (contractor equipment rentals)

Case law and prior advisory opinions relied on:

• Global Golf, TSB-A-00(34)S; Rome Research Corporation, TSB-A-00(47)S; West Valley Nuclear Services Co., Inc., TSB-D-98(15)S (subcontractor purchases not for resale to exempt entity)
• Village of East Aurora, TSB-A-99(24)S; MGK Constructors, DTA Nos. 807262/807881/807882 (no agency relationship absent specific appointment)
• Morton L. Coren, P.C., TSB-A-97(12)S; NDL Organization, Inc., TSB-A-98(16)S (sorting services not taxable)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2005.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a05_1s.pdf

Original ruling text

New York State Department of Taxation and Finance

Office of Tax Policy Analysis
Technical Services Division

TSB-A-05(1)S
Sales Tax
January 4, 2005

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S030904B

On September 4, 2003, the Department of Taxation and Finance received a Petition for
Advisory Opinion from MARCOR Remediation, Inc., 246 Cockeysville Road, Suite 1, Hunt
Valley, Maryland, 21030-2149.
The issues raised by Petitioner, MARCOR Remediation, Inc., are whether, under the
circumstances described below:
1.
Purchases or rentals of equipment, tires and maintenance items for the
equipment, as well as other consumable materials, for use in the performance of a
subcontract for the New York City Police Department are subject to sales and
compensating use tax; and
2.

Charges to the general contractor are subject to sales tax.

Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner performed forensic debris screening from September 17, 2001, through
December 2002, at the Fresh Kills landfill site as a subcontractor to Garner Environmental
Services, Inc. (“Garner”). Garner was the general contractor to the New York City Police
Department (“NYPD”) for such services. The screening services were performed as part of the
cleanup and investigation of the World Trade Center attack on September 11, 2001. Essentially,
Petitioner sifted through the Ground Zero debris for evidentiary materials that would assist
investigators and that would help to identify victims of the attack. Petitioner did not transport
any of the debris from Ground Zero to the Fresh Kills landfill and did not perform any forensic
investigations. In the performance of its contract, Petitioner rented equipment, purchased tires
and other maintenance items for the rented equipment, and purchased consumable materials such
as Tyvek suits and respirators.
Documents submitted by Petitioner indicate that Garner’s contract with the NYPD was
signed pursuant to an Emergency Standby Services contract. Petitioner submitted the following
excerpts from this contract:
This contract is being established in order to permit the State, local governments,
school districts and others authorized by law to respond immediately and effectively with
needed products and services in the event that an emergency is declared by any political

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subdivision or the Governor of the State of New York in accordance with the laws of the
State of New York; (hereafter “declared emergency”).
Authorized Contract Users. It is anticipated that this contract will be used
primarily by or at the direction of the State Emergency Management Office (SEMO).
SEMO may make purchases, or direct other state agencies or local governments to do so.
The Contractor understands and agrees that the use of this contract in the event of a
declared emergency is optional and will [be] primarily for, but not limited to, New York
State agencies (“Agencies”). Upon approval of the Commissioner of OGS, this contract
may also be accessed and utilized by local governments, school districts and others
authorized by law, (collectively with Agencies referred to as “Authorized Users”),
located in or providing services to those designated counties or locations where the
governor has declared a state of emergency or disaster area and who shall be solely
responsible for performance and payment.
Under the New York State Office of General Services, Procurement Services
Group, Appendix B - General Specifications for Procurement Contracts - Part I, General All Procurements, # 17.b. Purchases made by the state of New York and certain nonState Authorized Users are exempt from New York State and local sales taxes and, with
certain exceptions, federal excise taxes. To satisfy the requirements of the New York
State Sales tax exemption, either the Purchase Order issued by a State Agency or the
invoice forwarded to authorize payment for such items will be sufficient evidence that the
sale by the Contractor was made to the State, an exempt organization under Section
1116(a)(1) of the Tax Law. Non-State Authorized Users must offer their own proof of
exemption where required. No person, firm, or corporation is, however, exempt from
paying the State Truck Mileage and Unemployment Insurance or Federal Social Security
taxes, which remain the sole responsibility of the Contractor. . . .
Petitioner also submitted a document indicating that the NYPD sent a work order to
Garner to commence forensic screening at the Fresh Kills landfill.
Applicable law and regulations
Section 1101(b) of the Tax Law provides, in part:
When used in this article for the purposes of the taxes imposed by subdivisions
(a), (b), (c) and (d) of section eleven hundred five and by section eleven hundred ten, the
following terms shall mean:
(1) Purchase at retail. A purchase by any person for any purpose other than those
set forth in clauses (A) and (B) of subparagraph (i) of paragraph (4) of this subdivision.
*

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(4) Retail sale. (i) A sale of tangible personal property to any person for any
purpose, other than (A) for resale as such or as a physical component part of tangible
personal property, or (B) for use by that person in performing the services subject to tax
under paragraphs (1), (2), (3), (5), (7) and (8) of subdivision (c) of section eleven hundred
five where the property so sold becomes a physical component part of the property upon
which the services are performed or where the property so sold is later actually
transferred to the purchaser of the service in conjunction with the performance of the
service subject to tax. Notwithstanding the preceding provisions of this subparagraph, a
sale of any tangible personal property to a contractor, subcontractor or repairman for
use or consumption in erecting structures or buildings, or building on, or otherwise
adding to, altering, improving, maintaining, servicing or repairing real property,
property or land, as the terms real property, property or land are defined in the real
property tax law, is deemed to be a retail sale regardless of whether the tangible
personal property is to be resold as such before it is so used or consumed. . . . (Emphasis
added)
Section 1105 (a) of the Tax Law imposes a sales tax upon:
The receipts from every retail sale of tangible personal property, except as
otherwise provided in this article.
Section 1105(c) of the Tax Law imposes sales tax on the receipts from every sale, except
for resale, of certain enumerated services.
Section 1115(a) of the Tax Law provides, in part:
Receipts from the following shall be exempt from the tax on retail sales imposed
under subdivision (a) of section eleven hundred five and the compensating use tax
imposed under section eleven hundred ten:
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(15) Tangible personal property sold to a contractor, subcontractor or repairman
for use in (i) erecting a structure or building (A) of an organization described in
subdivision (a) of section eleven hundred sixteen . . . or (ii) adding to, altering or
improving real property, property or land (A) of such an organization . . . as the terms
real property, property or land are defined in the real property tax law; provided,
however, no exemption shall exist under this paragraph unless such tangible personal
property is to become an integral component part of such structure, building or real
property. (Emphasis added)
(16) Tangible personal property sold to a contractor, subcontractor or repairman
for use in maintaining, servicing or repairing real property, property or land (i) of an

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organization described in subdivision (a) of section eleven hundred sixteen . . . as the
terms real property, property or land are defined in the real property tax law; provided,
however, no exemption shall exist under this paragraph unless such tangible personal
property is to become an integral component part of such structure, building or real
property. (Emphasis added)
Section 1116(a) of the Tax Law provides, in part:
Except as otherwise provided in this section, any sale . . . to any of the following
or any use by any of the following . . . shall not be subject to the sales and compensating
use taxes imposed under this article:
(1) The state of New York, or any of its agencies, instrumentalities, public
corporations (including a public corporation created pursuant to agreement or compact
with another state or Canada) or political subdivisions where it is the purchaser, user or
consumer . . .;
Section 526.3 of the Sales and Use Tax Regulations provides, in part:
The term purchase at retail means a purchase by any person of tangible personal
property or services, for any purpose other than:
(a) for resale of the property or services as such or when the property is purchased
for resale as a physical component part of tangible personal property; or
(b) for use by the purchaser in performing services subject to the tax under section
1105(c)(1), (2), (3) or (5) of the Tax Law where the property becomes a physical
component part of the property upon which the services are performed or is later actually
transferred to his customer in conjunction with the taxable services performed.
(Emphasis added)
Section 526.6 of the Sales and Use Tax Regulations provides, in part:
(a) The term retail sale or sale at retail means the sale of tangible personal
property to any person for any purpose, except as specifically excluded.
(b) Special rule--sales specifically included as retail sales. (1) A sale of any
tangible personal property to a contractor, subcontractor or repairman for use or
consumption in erecting structures or buildings or adding to, altering, improving,
maintaining, servicing or repairing real property, property or land, is deemed to be a
retail sale, regardless of whether the tangible personal property is to be resold as such
before it is used or consumed. (Emphasis added)

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*

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*

(c)(6) Tangible personal property purchased for use in performing services which
are taxable under section 1105(c)(1), (2), (3) and (5) of the Tax Law is purchased for
resale and not subject to tax at the time of purchase, where the property so sold (i)
becomes a physical component part of the property upon which the services are
performed, or (ii) is later actually transferred to the purchaser of the service in
conjunction with the performance of the service subject to tax. (Emphasis added)
*

*

*

Example 9: A painter purchases plastic drop cloths and sandpaper and after
painting a customer's premises, leaves the used drop cloths and sandpaper at the
premises. The drop cloths and sandpaper, even though of limited or no use after
the painting, have not been purchased for resale as they are items used by the
painter in performing a taxable service. The drop cloths and sandpaper are not
actually transferred to the purchaser of the service in conjunction with the
performance of the service.
Section 529.2 of the Sales and Use Tax Regulations provides, in part:
(a) Governmental entities. (1) Agencies and instrumentalities of the State as used
in this section means any authority, commission or independent board created by an act
of the Legislature for a public purpose.
(2) A public corporation as used in this section means any corporation created by
an act of the Legislature for a public purpose or pursuant to an agreement or compact
with another state or Canada.
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*

(3) A political subdivision as used in this section means a county, town, city,
village, school district, fire district, special district corporation and board of cooperative
educational services of this State.
(b) As purchaser. (1) New York State, or any of its agencies, instrumentalities,
public corporations or political subdivisions (hereinafter referred to as New York State
governmental entities) are not subject to sales or use tax when they are the purchaser,
user, or consumer of tangible personal property or services. . . .

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(2) New York State governmental entities as purchasers, users, consumers,
occupants or patrons must exercise their right to exemption through the issuance of
governmental purchase orders or the appropriate exemption document.
Section 529.7(h) of the Sales and Use Tax Regulations provides, in part:
Sales to exempt organizations. (1) Any sale or amusement charge to or any use or
occupancy by an exempt organization to which an exempt organization certificate has
been issued is exempt from sales and use tax.
(2) In order to exercise its right to exemption the organization must be the direct
purchaser, occupant or patron of record. It must also be the direct payer of record and
must furnish its vendors with a properly completed exempt organization certification.
Direct purchaser, occupant or patron as used in this paragraph includes any agent or
employee authorized by the organization to act on its behalf in making such purchases,
provided the organization and its agent or employee are both identified on any bill or
invoice. An organization is the direct payer of record where direct payment is made by
the organization or from its funds directly to the vendor.
Section 541.2(c) of the Sales and Use Tax Regulations provides, in part:
An agency contract means an agreement which permits a contractor and
subcontractor to act as an agent of, that is, in the place of the principal, his customer.
Purchases made by the agent-contractor or agent-subcontractor on behalf of the principal
are treated in the same manner as if the purchases were made by the principal. All
purchases (including rentals of contractor's tools, supplies, machinery and equipment)
made by the agent-contractor or agent-subcontractor on behalf of the principal are treated
in the same manner as if the purchases were made by the principal.
Section 541.3(a) of the Sales and Use Tax Regulations provides, in part:
Governmental entities. When a contractor’s customer is a governmental entity
described in section 1116(a)(1) or (2) of the Tax Law, the contract signed by the
government representative and the prime contractor is sufficient proof of the exempt
status of purchases made for such contract. (Emphasis added)
(1) Such governmental entities include: (i) Pursuant to section 1116(a)(1) of the
Tax Law the State of New York, or any of its agencies, instrumentalities, public
corporations (including a public corporation created pursuant to agreement or compact
with another state or Canada), or political subdivisions. . . .
Section 541.3(d) of the Sales and Use Tax Regulations provides, in part:

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Contracts with exempt organizations. (1) Tangible personal property incorporated
into real property owned by a governmental entity or by an exempt organization is
exempt, whether the contract is on a lump sum, time and material, cost-plus, or other
basis.
(2) Purchase for contracts (other than agency contracts). (i) Tangible personal
property sold to a contractor, subcontractor, or repairman for use in erecting, repairing,
adding to, or altering a structure or building owned by an exempt organization, described
in section 1116(a) of the Tax Law, is exempt when it is to become an integral component
part of such structure or building. (Emphasis added)
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*

(ii) Purchases of tangible personal property incorporated into the real property of
an exempt organization by subcontractors and repairmen are accorded the same
treatment as purchases by the prime contractor. (Emphasis added)
(iii) Tangible personal property purchased by a contractor, which remains tangible
personal property after installation, is exempt from the tax when purchased for and sold
to an exempt organization.
Example 6: An exempt organization contracts to have a new wing built onto their
existing building. The new wing includes the addition of a cafeteria. The
contractor may purchase, exempt from the tax, the tangible personal property that
becomes part of the capital improvement to real property and the tangible
personal property which remains tangible personal property.
(iv) Except for agency contracts, contractors' purchases of construction supplies
which do not become part of an exempt organization's real property and are used or
consumed by the contractor, as well as purchases of taxable services, such as electricity
used by the contractor, are subject to the tax. (Emphasis added)
The following types of property and services are representative, but not intended
to be all-inclusive, of contractor's purchases which are subject to tax, irrespective of
whether the contractor has a time and material, lump sum, or other type of contract
(except agency contract), with an exempt organization:
(a) construction machinery and equipment, including rentals and repair parts;
(b) contractors' office supplies;
(c) contractors' supplies, tools, and miscellaneous equipment, whether purchased
or rented, including materials to make forms and scaffolding; and

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(d) any other items purchased or rented by a contractor for his use in performing
the contract and not incorporated into the realty. (Emphasis added)
Example 7: Lumber and other materials which are used to build forms are not
exempt since they do not become a component part of the structure.
Example 8: Equipment rentals under the dominion and control of the contractor,
such as rentals of cranes, bulldozers, backhoes, etc. for use in building a structure
for an exempt organization are subject to tax.
(v) Documents. (a) If the customer is a governmental entity, copies of signed
contracts and government purchase orders are sufficient evidence to establish the exempt
status of the job between the governmental entity and the prime contractor. With respect
to the documents required between a prime contractor and the subcontractors, a signed
document between them which identifies the project, location and exempt owner, will
form the basis for tax exemption of tangible personal property purchased for
incorporation into the exempt project. When purchasing such tangible personal property
for the exempt project, the contractor or subcontractor will issue a properly completed
contractor exempt purchase certificate to the supplier.
Section 541.9(a) of the Sales and Use Tax Regulations provides, in part:
The purchase, rental, lease or license to use construction equipment . . . by a
contractor is subject to sales and use tax.
Section 541.9(c)(1) of the Sales and Use Tax Regulations provides, in part:
Rentals and leases of equipment to contractors. (i) Where a contractor leases
equipment, the contractor is liable for the combined State and local sales and use tax on
the total charges at the highest rate in effect in any jurisdiction in which the equipment is
used during the lease payment period, (e.g., daily, weekly, monthly, depending on the
frequency of payment).
Opinion
Petitioner performed forensic debris screening from September 17, 2001, through
December 2002, at the Fresh Kills landfill site as a subcontractor to Garner. Petitioner sifted
through the Ground Zero debris for evidentiary materials that would assist investigators and help
to identify victims. Petitioner did not transport any of the debris and did not perform any
investigations. Garner was the general contractor, having a contract with the NYPD to perform
services at that site. In the performance of its contract, Petitioner, as a subcontractor to Garner,
rented equipment, purchased tires and other maintenance items for the rented equipment, and
purchased consumable materials such as Tyvek suits and respirators.

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From the documents submitted, Garner had a contract to perform services for the NYPD,
an exempt governmental entity. See section 1116(a)(1) of the Tax Law, and sections 529.2(a),
(b) and 529.7(h)(2) of the Sales and Use Tax Regulations. In general, the fact that a
subcontractor has a contract with a person having a contract with an entity exempt under section
1116(a)(1) of the Tax Law, does not affect the taxability of the purchases made by the
subcontractor for equipment, parts, services or supplies which do not become incorporated as an
integral component part of the realty of the exempt entity.
As a subcontractor to Garner on its contract with the NYPD, Petitioner performed
forensic screening of the debris resulting from the attack on the World Trade Center. The facts
in this Petition do not indicate that Petitioner was to provide rental equipment, parts,
maintenance items for the equipment or any other consumables directly to either Garner or the
NYPD. Therefore, Petitioner’s role was essentially that of a service provider. Rental equipment,
parts, maintenance items and other consumables were purchased by Petitioner for use in
performing its contractual obligations to Garner and were not purchased for resale as such
to either Garner or the NYPD. See Global Golf, Adv Op Comm T&F, September 7, 2000,
TSB-A-00(34)S; Rome Research Corporation, Adv Op Comm T&F, November 20, 2000,
TSB-A-00(47)S; West Valley Nuclear Services Co., Inc., Dec Tax App Trib, November 13,
1998, TSB-D-98(15)S, determination confirmed, 264 AD2d 101, appeal denied 95 NY2d 760.
Purchases of equipment and related property or supplies by contractors, or
subcontractors, which do not become part of the property upon which the services are performed
and are not actually transferred to the purchaser of the services are considered to be used or
consumed by the contractor and are subject to sales tax. See section 1101(b)(4)(i)) of the Tax
Law, and sections 526.3(b), 526.6(c)(6), 541.3(d)(2)(iv) and 541.9(a) of the Sales and Use Tax
Regulations. Therefore, Petitioner’s purchases or rentals of equipment, parts, maintenance items
and other consumables are retail purchases subject to tax, unless otherwise exempt.
Petitioner’s purchases or rentals of equipment, parts, services and consumable materials
do not qualify for the exemption under section 1115(a)(15) or (16) of the Tax Law because these
items are not transferred to, and do not become an integral component part of the property of, the
NYPD as a result of Petitioner’s services.
Pursuant to section 1116(a)(1) of the Tax Law, the City of New York is not subject to
sales tax when acting as a purchaser, user or consumer. Moreover, a contractor or subcontractor
acting as agent of the city would likewise not be subject to sales tax on its purchases. See MGK
Constructors, Dec Tax App Trib, March 5, 1992, DTA Nos. 807262, 807881 and 807882; and
sections 529.2(b) and 541.2(c) of the Sales and Use Tax Regulations.
Excerpts from the contracts between Garner and the NYPD provided by Petitioner simply
provide that purchases made by New York State, its local governments or political subdivisions
are exempt from New York State and local sales taxes, and that either the purchase order issued
by a State agency or the invoice forwarded to authorize payment for such purchases will be

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sufficient evidence that the sale by the Contractor (Garner) was made to an entity exempt under
section 1116(a)(1) of the Tax Law. However, nothing in the contract language furnished by
Petitioner with the Petition for Advisory Opinion indicates that Garner was appointed as agent of
the NYPD. Furthermore, nothing in this language indicates that even if Garner were appointed
as the NYPD’s agent, that the NYPD had granted further authority to Garner permitting it to
appoint any other persons as agent of the NYPD. Even had the contract authorized Garner to act
as the NYPD’s agent, such authority would not automatically extend to Petitioner simply
because Petitioner was hired by Garner as a subcontractor. Therefore, based on the facts in this
Advisory Opinion, Petitioner’s purchases or rentals of equipment, parts and other maintenance
items for the equipment, and consumable materials do not appear to have been made as an agent
of the NYPD, and thus, do not qualify for exemption from sales tax. See Rome Research
Corporation, supra; West Valley Nuclear Services Co., Inc.,supra; Village of East Aurora, Adv
Op Comm T&F, April 8, 1999, TSB-A-99(24)S, which determined that a contractor was not
acting as the agent of a governmental entity.
Therefore, Petitioner’s purchases and rentals of the equipment, parts, and consumable
materials are subject to New York sales and use tax.
The forensic screening services Petitioner performed consisted of sorting through debris
at the Fresh Kills landfill. Sorting has been determined to be a nontaxable service, with respect
to the sorting of letters by zip code and the sorting of radioactive waste to determine
classification for disposal purposes. See Morton L. Coren, P.C., Adv Op Comm T&F, March 6,
1997, TSB-A-97(12)S; NDL Organization, Inc., Adv Op Comm T&F, March 4, 1998,
TSB-A-98(16)S. The sorting services performed by Petitioner are, likewise, not among the
enumerated services subject to sales tax pursuant to section 1105(c) of the Tax Law. Thus,
Petitioner’s charges to Garner for performing forensic screening services are not subject to tax.

DATED: January 4, 2005

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.