Can a Manhattan parking garage satisfy New York's recordkeeping rules by giving customers electronic receipts and keeping digital records instead of paper?

Plain-English summary

A company that operates parking garages in the New York City area wants to switch from paper to a phone/app system that lets customers reserve and pay for parking, issues electronic receipts, and keeps digital records. It asked whether electronic receipts and digital recordkeeping satisfy New York's requirements. The Department said yes — in principle — but only if the records meet the statutory requirements, and it couldn't confirm this specific app complies.

General recordkeeping. Every person required to collect sales tax must keep records of every sale and the tax due, including a true copy of each receipt that separately states the tax (Tax Law § 1135(a)(1)). If records are kept electronically, the Department can require them to be made available and accessible (Tax Law § 1135(h)).

Manhattan parking has extra rules. Parking facility operators in Manhattan are subject to special recordkeeping under Tax Law § 1142-A (and 20 NYCRR 538.3). Each operator must give every customer a ticket or documentation and keep a copy; tickets must be consecutively numbered or computer-issued in a Department-approved manner, and must show the vehicle's entry time (and exit time, unless a flat fee with certain conditions). For monthly or longer-term parking, the ticket must include the customer's name and signature or ID, and the operator must keep a list of long-term purchasers (name, address, signature, valid period, number of authorized vehicles).

Electronic is fine if it complies — but get the numbering approved. A digital app that maintains electronic records and issues electronic receipts can satisfy § 1142-A(b) if it meets all the recordkeeping requirements, uses a Department-approved numbering system, includes all required information, and lets the operator hand the Department the digital records to support its returns. Because that's fact-specific, the Department can't conclusively decide whether this app qualifies. To get the numbering system approved, the operator must submit the proposed scheme to the Audit Division–Sales Tax Bureau at least 20 days before use (20 NYCRR 538.3(b)(1)).

What this means for you

Parking garage operators (especially in Manhattan)

You can go paperless — electronic receipts and digital records are acceptable — but only if your system captures everything the law requires: sequential/Department-approved numbering, entry (and usually exit) times, the long-term customer list, and the ability to produce the records to the Department. Manhattan's § 1142-A rules are stricter than the general § 1135 requirements.

Get the numbering system pre-approved

Don't roll out a new ticketing/numbering scheme first and ask later: submit your proposed numbering or computer-issuance procedure at least 20 days before use. And remember an advisory opinion won't bless your specific implementation — compliance is judged on your actual records.

Accountants and tax professionals

Map the client's app against § 1142-A(b)/20 NYCRR 538.3 line by line (numbering, entry/exit times, long-term list, retrievability) plus the § 1135 electronic-access requirement. Build in the 20-day pre-approval step for the numbering system.

Common questions

Q: Can a New York parking garage use electronic receipts instead of paper?
A: Yes, if the electronic receipts and digital records meet the recordkeeping requirements — for Manhattan operators, that's Tax Law § 1142-A(b) and 20 NYCRR 538.3, including an approved numbering system and required details.

Q: What must the records show?
A: At minimum, consecutively numbered or computer-issued (approved) tickets showing entry time (and usually exit time), plus, for long-term parking, the customer's name/signature/ID and a maintained list of long-term purchasers.

Q: Did the Department approve this company's app?
A: No. It said a compliant digital system would suffice but couldn't conclusively determine whether this specific app meets the requirements — that's fact-specific.

Q: What about the numbering system?
A: The proposed numbering scheme or computer-issuance procedure must be submitted to the Audit Division–Sales Tax Bureau at least 20 days before use.

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 regulations:
- Tax Law § 1142-A(b) — special recordkeeping for Manhattan parking facilities (tickets, numbering, entry/exit times, long-term list)
- Tax Law § 1135(a)(1) — general sales tax recordkeeping (true copy of each receipt; separately stated tax)
- Tax Law § 1135(h) — electronic records must be made available and accessible to the Department
- 20 NYCRR 538.3 — parking recordkeeping rules; 20 NYCRR 538.3(b)(1) — 20-day pre-approval of numbering system

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/24-27s.htm
• Printer-friendly PDF: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a24-27s.pdf

Original ruling text

Sales Tax
August 6, 2024
Office of Counsel

The Department of Taxation and Finance received a Petition for Advisory Opinion from [ redacted ] (“Petitioner”). Petitioner asks whether the furnishing of electronic receipts to customers of parking services and its maintenance of digital records will satisfy the requirements imposed by Tax Law § 1142-A(b) and related regulations. We conclude that the use of a software application to maintain digital records and electronic receipts would be sufficient, provided that the records comply with the requirements imposed by Tax Law § 1142-A(b). However, this Advisory Opinion cannot conclusively determine whether the specific electronic records generated by Petitioner satisfy the recordkeeping requirements of the Tax Law and related regulations.

Facts

Petitioner operates parking garages in the New York City metro area. Petitioner currently provides paper receipts to customers for parking in their garages. Petitioner is in the process of implementing a new phone/digital application to allow customers to reserve and pay for parking. Petitioner will furnish customers that use the application with electronic receipts, as opposed to paper receipts, and will maintain digital records of these transactions.

Analysis

Tax Law § 1135(a)(1) requires that every person required to collect sales tax must keep records of “every sale . . . and of all amounts paid, charged or due thereon and of the tax payable thereon, in such form as the commissioner of taxation and finance may by regulation require. Such records shall include a true copy of each sales slip, invoice, receipt, statement or memorandum upon which subdivision (a) of section eleven hundred thirty-two requires that the tax be stated separately.” Tax Law § 1135(h) also states that “the commissioner may require any person who has elected to maintain in an electronic format any portion of the records required to be maintained by that person under this article, to make the electronic records available and accessible to the commissioner, notwithstanding that the records are also maintained in a hard copy format.”

In addition, parking garage operators in Manhattan are subject to special recordkeeping and enforcement provisions related to parking services, which can be found in Tax Law § 1142-A. Each parking facility operator in Manhattan is required to furnish a ticket or other documentation to each purchaser of parking services, and must keep each ticket, or a true copy thereof. The tickets must be consecutively numbered or issued by a computer in a manner approved by the Department. Among the numerous other requirements, the tickets must show the date and time the motor vehicle entered the parking garage. The date and time of exit of the motor vehicle also must be indicated on the ticket, unless the parking charge is based on a flat fee and certain other conditions are met. See Tax Law § 1142-A(b); 20 NYCRR 538.3. In the event that the ticket is issued to a purchaser that allows parking for a month or more, the ticket must include the customer’s name and signature or identification number. See 20 NYCRR 538.3(b)(5). Persons required to collect tax on parking charges must keep records of each ticket provided to its customers. If long term parking is provided, the person required to collect tax must keep a list “containing the name, address and signature of each monthly or other longer-term purchaser of service, the valid period of such monthly or longer-term service, and the number of authorized vehicles entitled to such parking services, without regard to whether a ticket or other documentation is issued to such purchaser.” See Tax Law § 1142-A(b).

Tax Law § 1142-A(b) allows for a ticket or other documentation. Because of the factual nature of the inquiry, this Advisory Opinion cannot reach a definite conclusion about Petitioner’s application. However, if Petitioner’s digital application complies with the recordkeeping requirements imposed by § 1142-A(b) and 20 NYCRR 538.3, creates electronic receipts with a numbering system approved by the Department, includes all the required information, and enables Petitioner to provide the Department with the digital records to support its returns, Petitioner’s use of a digital application to maintain electronic records and provide electronic receipts to parking customers would satisfy the requirements of § 1142-A and related regulations. In order to receive Department approval of the numbering system, “the proposed numbering scheme or alternative computer issuance procedure” must be submitted to the Audit Division-Sales Tax Bureau at least 20 days prior to use by the parking facility. See 20 NYCRR 538.3(b)(1).

DATED: August 6, 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.