Are private cooking, baking, and cake-decorating lessons taught in a customer's home subject to New York sales tax?

Plain-English summary

An instructor planned to teach private cooking, baking, and cake-decorating lessons in customers' homes. She offered three versions: customers buy all ingredients and work with her to make a few dishes; the same but she supplies some or all ingredients for an added charge; or she brings a partially finished product (cut-out cookies, plain gingerbread houses) and teaches customers to decorate it. Each is billed as a single lump sum. She asked whether the charges are taxable.

The Office of Counsel concluded the lessons are not subject to sales tax. Tax Law § 1105(c) taxes only an enumerated list of services, and cooking and baking instruction is not on it. When the instructor provides ingredients or recipes, she is using them to deliver a non-taxable service, not reselling them, so those incidental items do not change the result. Because she is the end user of the ingredients, she should pay sales tax when she buys them.

What this means for you

Cooking / baking / craft instructors

Charges for teaching are generally not taxable in New York. You do not collect sales tax on lesson fees, even when you hand out recipes or use ingredients during class. But you are the consumer of supplies you buy for the class, so pay sales tax on those purchases.

Customers

A fee for a cooking or baking class shouldn't carry sales tax, even if the teacher brings ingredients or a partly-made item to finish.

Accountants and tax professionals

Classic "service not enumerated in § 1105(c) = not taxable," with the incidental-tangible-property gloss: minor goods supplied as part of a non-taxable service do not make the service taxable, and the provider pays tax on its inputs (20 NYCRR 526.6(c)(7); TSB-A-01(12)S).

Common questions

Q: Does it matter that the teacher supplies the ingredients?
A: No. The ingredients are incidental to the lesson. She isn't reselling them, so the lump-sum charge stays non-taxable.

Q: Does the teacher owe any tax at all?
A: Yes, on her own purchases of ingredients and supplies, because she is the end user of them.

Q: What about handing over printed recipes?
A: Recipes provided on paper or electronically are incidental to the instruction and do not make it taxable.

Q: Can I rely on this opinion?
A: It binds the Department only as to the petitioner. Use it as guidance and confirm your own facts.

Citations and references

Statutes and guidance:
- Tax Law § 1105(c) (enumerated taxable services)
- 20 NYCRR 526.6(c)(7); TSB-A-01(12)S; TSB-A-02(34)S

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales-ao-2020.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a20-16s.pdf

Original ruling text

New York State Department of Taxation and Finance
Office of Counsel

TSB-A-20(16)S
Sales Tax
June 9, 2020

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION
The Department of Taxation and Finance received a Petition for Advisory
Opinion from [ REDACTED ] (hereinafter “Petitioner”).Petitioner asks whether her
services of teaching private cooking, baking and decorating lessons in people’s homes
are subject to sales tax.
We conclude that Petitioner’s services are not subject to sales tax.
Facts
Petitioner intends to teach private cooking and baking lessons in people’s homes.
Petitioner will offer her customers one of three services. One service includes
Petitioner’s customers purchasing all necessary ingredients and Petitioner working with
her customers to improve practical skills and complete one to three dishes. Petitioner
will provide the customers with copies of any recipes and pertinent information used
either electronically or on paper. A second service Petitioner will offer is the same as
the first, except for an added cost Petitioner will supply some or all of the ingredients.
Petitioner’s third service involves Petitioner providing a partially finished product, such
as cut-out cookies or pre-made, undecorated gingerbread houses, and any additional
necessary items, and teaching customers how to decorate the product. The charge for
each service will be in one lump sum.
Analysis
Tax Law § 1105(c) imposes sales tax on the receipts from every sale, except for
resale, of certain enumerated services. Cooking and baking lessons are not among the
services subject to tax. See Tax Law § 1105(c); TSB-A-02(34)S. When Petitioner
provides the relevant ingredients, Petitioner is using those ingredients in the provision of
a non-taxable service and is not reselling those ingredients to the customer. Therefore,
Petitioner should pay any applicable sales tax on the purchase of the ingredients. See 20
NYCRR 526.6(c)(7); TSB-A-01(12)S. Because the ingredients and recipes provided in
tangible form are incidental to the service, it does not change the non-taxability of the

-2-

TSB-A-20(16)S
Sales Tax
June 9, 2020

service. See TSB-A-01(12)S. Therefore, the lump sum charge for providing these
lessons is not subject to tax.
DATED: June 9, 2020

/S/
DEBORAH R. LIEBMAN
Deputy Counsel
NOTE: An Advisory Opinion is issued at the request of a person or entity. It is limited
to the facts set forth therein and is binding on the Department only with respect
to the person or entity to whom it is issued and only if the person or entity fully
and accurately describes all relevant facts. An Advisory Opinion is based on the
law, regulations, and Department policies in effect as of the date the Opinion is
issued or for the specific time period at issue in the Opinion. The information
provided in this document does not cover every situation and is not intended to
replace the law or change its meaning.