NY TSB-A-24(20)S Sales Tax 2024-08-02

Is a labor-only service of moving a customer's own furniture from one spot to another within its premises subject to New York sales tax?

Short answer: Not taxable. The Department concluded that a company providing only physical labor to move a customer's own furniture (tables, chairs) from one on-premises location to another — to help prepare for a corporate event — is not performing a taxable service. Moving tangible personal property is not among the services enumerated in Tax Law § 1105, and the company does not plan, arrange, or install the furniture (TB-ST-341; TSB-A-97(11)S). Adding installation services to a move could change that.

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 helps customers prepare for on-premises corporate events and conferences by providing physical labor to move the customer's own furniture (tables, chairs, etc.) from one location on the premises — usually storage — to a conference room. It doesn't plan the layout, arrange, or install anything. It asked whether that service is subject to New York sales tax. The Department said no.

New York imposes sales tax on retail sales of tangible personal property and on specifically enumerated services (Tax Law § 1105). The service of moving tangible personal property is not on that list (TB-ST-341, Household Movers and Warehousers). Because the company is only moving customer-owned furniture within the premises and is not designing the layout, arranging, or installing it, the service is not taxable (TB-ST-341; TSB-A-97(11)S — moving furniture within an office building isn't taxable unless installation is performed with the move).

The boundary to watch: the result holds because there's no installation. If a move is bundled with installation services, the analysis can change and tax may apply.

What this means for you

Movers, event/labor crews, and facilities services

Pure moving labor — relocating a customer's own items, even within a building for an event — is not a taxable service in New York, because moving isn't one of the enumerated taxable services. Keep the work to moving and you stay outside the tax.

Where it can flip to taxable

If you install, assemble, arrange, or set up items as part of the job (beyond just carrying them), you may cross into a taxable installation service. The cleaner the "move-only" scope (and your invoices), the safer the nontaxable treatment.

Accountants and tax professionals

Taxability rises or falls on whether the activity is an enumerated § 1105 service. Moving isn't; installation can be. Review scope and invoices for any installation/assembly component (TB-ST-341; TSB-A-97(11)S).

Common questions

Q: Is a furniture-moving service taxable in New York?
A: Not when it's labor-only moving of the customer's own property. Moving tangible personal property isn't among the services enumerated in Tax Law § 1105, so it isn't taxable.

Q: What would make it taxable?
A: Performing installation services in conjunction with the move. If you install, assemble, or set up the items, the charge can become taxable.

Q: Does it matter that it's for a corporate event?
A: No. The purpose of the move doesn't change the analysis; what matters is that it's moving (not installing) tangible personal property.

Q: Can my business rely on this opinion?
A: Not as binding. A TSB-A advisory opinion binds the Department only as to the petitioner and the exact facts described. Use it to understand the reasoning, then check your own facts.

Citations and references

New York Tax Law and guidance:
- Tax Law § 1105 — sales tax on tangible personal property and enumerated services (moving is not enumerated)
- TB-ST-341 — Household Movers and Warehousers (moving items within a building is not taxable)
- TSB-A-97(11)S — moving furniture within an office building is not taxable unless installation is performed with the move

Source

Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao.htm
Opinion: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales/24-20s.htm
Printer-friendly PDF: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a24-20s.pdf

Original ruling text

Sales Tax
August 2, 2024
Office of Counsel

The Department of Taxation and Finance received a Petition for Advisory Opinion from [ redacted ] (Petitioner) asking whether sales tax is imposed on its service of moving a customer’s furniture at the customer’s premises—from one on-premises location to another—to facilitate the customer’s preparation for a corporate event or conference. We conclude that the described moving service is not subject to sales tax.

Facts

Petitioner is a Pennsylvania corporation doing business in New York City. Petitioner is in the business of helping its customers prepare for on-premises corporate events and conferences. Specifically, Petitioner provides only physical labor to move customer-owned furniture from one location on the customer’s premises—typically a storage area—to a conference room or similar event location also on the customer’s premises. Customer-owned furniture is limited to tables, chairs, etc. Petitioner does not plan the layout of, arrange, or otherwise install the customer-owned furniture.

Analysis

The Tax Law imposes sales tax generally on receipts from retail sales of tangible personal property and specifically enumerated services. See Tax Law § 1105. The service of moving tangible personal property is not among the services subject to tax. See TB-ST-341 -- Household Movers and Warehousers – Sales of moving services and related transactions (03/18/11).

Petitioner is only moving customer-owned furniture (e.g., tables and chairs) from one location on its customer’s premises—typically a storage area—to another location also on its customer’s premises to assist the customer in preparing for a corporate event or conference. Petitioner does not design the layout of, arrange, or otherwise install the customer-owned furniture. Thus, Petitioner’s moving service as described is not a taxable service. See TB-ST-341, supra (service of moving items within a building is not taxable); TSB-A-97(11)S (service of moving furniture within an office building is not taxable unless installation services are performed in conjunction with the move).

DATED: August 2, 2024

Mary Ellen Ladouceur
Principal Attorney

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.