Ezel / Tax Rulings / NY
NY TSB-A-20(9)S Sales Tax 2020-05-26

Is the ticket price for a pedal-bus sightseeing tour subject to New York sales tax?

Short answer: No. A sightseeing tour is not one of the services New York taxes under Tax Law § 1105(c). As long as the ticket is solely for the sightseeing tour and not for food or drink (none is sold or served on the vehicle), the receipts are not subject to state or local sales tax.
Currency note: this ruling is from 2020
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official New York State Department of Taxation and Finance Advisory Opinion (TSB-A), issued by the Office of Counsel at a taxpayer's request. It is limited to the facts set forth in it and binds the Department only with respect to the petitioner to whom it was issued, and only if that petitioner fully and accurately described all relevant facts; another taxpayer cannot rely on it. It reflects the law, regulations, and Department policy in effect when issued and may since have changed. Taxpayer-identifying details are redacted. New York State and local sales taxes are administered centrally by the Department. This summary is informational only and is not legal or tax advice. Consult a licensed New York tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked at the bottom of this page, or PDF in the sidebar) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

A company runs guided "pedal bus" sightseeing tours — a multi-seat pedal-powered vehicle (with electric-motor assist) that takes a pre-booked group on a roughly two-to-three-hour route past local historic sites, breweries, and restaurants, with a host who narrates and answers questions. No food or drink is sold or served on board; passengers may bring their own. The company asked whether the tour revenue is taxable.

The Office of Counsel concluded the tours are not subject to sales tax. New York taxes sales of tangible personal property and a specific list of enumerated services (Tax Law § 1105(c)). Tour services simply aren't on that list. As long as the ticket price is solely for the sightseeing tour — and not a charge for food or drink — the receipts aren't taxable. The opinion follows earlier sightseeing-tour opinions (TSB-A-15(30)S, TSB-A-11(30)S).

What this means for you

Tour operators (sightseeing, walking, bus, boat-adjacent, novelty vehicles)

A pure sightseeing/guided-tour charge is generally not a taxable service in New York, because tours aren't enumerated under § 1105(c). The novelty of the vehicle doesn't change that.

Watch for bundled food, drink, or taxable add-ons

The exemption holds because the ticket is only for the tour. If you bundle in food or drinks, alcohol, or sell taxable tangible items, those components can be taxable and you may need to separately state and tax them. Keep the tour charge distinct.

Accountants and tax professionals

This is the standard "not enumerated in § 1105(c) = not taxable" analysis for services. Confirm there's no taxable admission (e.g., a place of amusement) or food/beverage element folded into the ticket.

Common questions

Q: Do I charge sales tax on sightseeing tour tickets in New York?
A: No, not when the ticket is solely for the tour. Tour services aren't enumerated taxable services under § 1105(c).

Q: What if I include snacks, drinks, or alcohol in the ticket?
A: Food and drink components can be taxable. Keep the tour charge separate from any food/beverage or other taxable items.

Q: Does the electric-assist or unusual vehicle change anything?
A: No. The analysis is about the service being a nontaxable tour, not about the vehicle.

Q: Can I rely on this opinion?
A: It binds the Department only as to the petitioner, but it's consistent with prior sightseeing-tour opinions. Confirm your own facts, especially any bundled taxable items.

Citations and references

Statutes and guidance:
- Tax Law § 1105 (tax on TPP and enumerated services); § 1105(a), (c)
- TSB-A-15(30)S; TSB-A-11(30)S (sightseeing tours not taxable)

Source

Original ruling text

New York State Department of Taxation and Finance
Office of Counsel

TSB-A-20(9)
Sales Tax
May 26, 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 ] (“Petitioner”). Petitioner asks whether the revenue received for its sight-seeing
pedal bus tour is subject to state and/or local sales tax under Articles 28 and 29 of the Tax Law.
We conclude that Petitioner’s tours are not subject to sales tax.
Facts
The Petitioner provides pedal bus bike (“vehicle”) sightseeing tours. Passengers book the
vehicle for a group tour at a specific date, time and location. The Petitioner provides the driver
and tour host. The vehicle has ten pedaling seats, two non-pedaling seats above the rear wheel
wells and a three-seat rear bench. The vehicle is equipped with an electric motor assist feature
when more power is needed.
Only individuals who booked a group tour in advance of the initial departure are allowed
on the vehicle. Each tour lasts between two to three hours on Tuesdays through Sundays
between Noon and 8:00PM. The tour host welcomes groups on board and reviews safety
instructions, processes paperwork and waivers, explains the route, points out locations of
interest, answers questions, and acts as a liaison between passengers and the driver. The vehicle
does not have tables but each passenger has an armrest with a cup holder.
The vehicle travels to local historic sites, breweries and restaurants, allowing passengers
to disembark at each location. Each stop lasts approximately twenty minutes so that passengers
can look around and buy food and beverages. Passengers are not allowed to change the duration
of the tour and the itinerary is relatively fixed once the tour has started. No food or drink is sold
or served on the vehicle, although passengers are allowed to bring food and drink on the vehicle
with them. The Petitioner does not have a liquor license and does not contract with a caterer to
provide food or drink on the tour.
Analysis
Petitioner provides what it characterizes as a sightseeing tour of local historic sites,
breweries and restaurants with a tour host who points out locations of interest and answers
questions. Tax Law § 1105 imposes sales tax on receipts from the sale of tangible personal
property and from certain enumerated services. Tax Law §§ 1105 (a)(c). Tour services are not

-2-

TSB-A-20(9)
Sales Tax
May 26, 2020

among the services taxable under § 1105(c) of the Tax Law. As long as the price of the ticket is
solely for a sightseeing tour and not for food or drink, the receipts from ticket sales will not be
subject to sales tax. See TSB-A-15(30)S; TSB-A-11(30)S.
DATED: May 26, 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.