Is a matchmaking service that arranges social lunch meetings between clients subject to New York sales tax?

Plain-English summary

It's Just Lunch!, Inc. charges clients $500 for six months of matchmaking: consultants interview each new client to gather background and preferences, review notes on other clients to find a potential match, then call each matched client separately by phone to describe the other person and gauge interest. If both agree, the consultant books a lunch reservation and calls each client with the time and location. Notably, no written client information is ever shown or transferred to other clients -- everything about the match is communicated orally over the phone. Petitioner asked whether these fees are taxable.

Tax Law § 1105(c) taxes only a specific enumerated list of services. The Department characterized the "primary function" of Petitioner's service as enabling clients to meet other people -- and found that function doesn't correspond to any enumerated taxable service category, so the $500 fee is entirely untaxed. The opinion specifically flagged that client information is conveyed only orally, never in written or tangible form to other clients -- reinforcing that this isn't, for example, a taxable information or reporting service, since nothing is furnished in "printed... or... other tangible form."

What this means for you

Matchmaking and dating services structured around oral introductions

If your service's core function is bringing clients together for in-person meetings -- with match information communicated orally rather than delivered as a written report or other tangible product -- this opinion supports treating your fees as outside New York's enumerated taxable services, consistent with the same conclusion reached in TSB-A-96(52)S for a differently structured dating service.

Businesses that deliver match information in written or tangible form

Watch this distinction closely: this opinion specifically notes that client descriptions are "never transferred to nor even shown to other clients" and all information is oral. A service that instead hands clients written profiles, reports, or other tangible materials about their matches could face a different analysis (potentially implicating the information-services or printed-matter categories under § 1105(c)(1)).

Common questions

Q: Does it matter that match information is given orally rather than in writing?
A: The opinion specifically notes this fact, suggesting it reinforces (though may not be strictly required for) the conclusion that the service isn't a taxable information service -- a business delivering written match reports should confirm its own facts separately.

Q: Is this the same result as other New York matchmaking/dating service rulings?
A: Yes -- this tracks the same "primary function is bringing people together" reasoning applied in the Department's other dating-service opinions, such as TSB-A-96(52)S.

Q: Can another matchmaking business rely on this exact result?
A: No. This advisory opinion binds the Department only as to It's Just Lunch!, Inc. and the specific facts described; a business with a different information-delivery method or service mix should confirm its own facts.

Citations and references

Statutes and regulations:

• Tax Law § 1105(c) (tax on enumerated services)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1996.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a96_48s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-96 (48)S
Sales Tax
July 23, 1996

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO.S960411D

On April 11, 1996, a Petition for Advisory Opinion was received from It's Just Lunch!, Inc.,
120 East 56th Street, Suite 730, New York, New York 10022.
The issue raised by Petitioner, It's Just Lunch!, Inc. is whether the services provided to its
New York clients are subject to sales or compensating use tax.
Petitioner makes the following submission of facts.
Petitioner is a New York corporation with business offices in New York City. Petitioner
provides to its clients a service of arranging social luncheon meetings with other clients. Clients pay
a $500 fee which entitles the client to Petitioner's services for six months. Petitioner's employees
conduct informational interviews with new clients to gather background information about them, as
well as information regarding the type of person that client would like to meet. The consultant then
reviews notes of interviews with other clients, and identifies, or matches, two clients the consultant
believes would like to meet. The consultant then contacts each client separately by telephone and
describes the matched client. The consultant determines from these telephone conversations whether
the clients would like to meet for lunch. If there is an agreement to meet, the consultant makes a
luncheon reservation, and contacts each client by telephone with the time and location for the
luncheon meeting.
Client descriptions or other written information compiled by consultants in
printed, or other tangible form is never transferred to nor even shown to other clients. All
information supplied to clients regarding matches with other clients is supplied to them orally over
the telephone.
Section 1105(c) of the Tax Law imposes tax on the receipts from every sale, except for
resale, of certain enumerated services.
In this case, Petitioner provides its clients with the service of arranging social luncheon
meetings with other clients. Petitioner conducts informational interviews to gather background
information about a client and to determine the type of person this client would like to meet.
Petitioner reviews notes of interviews with other clients and then, using its judgment, attempts to
make a match with another client. Petitioner contacts each client by telephone and describes the
matched client. If there is an agreement to meet, a luncheon reservation is made and the matched
clients are advised as to the time and location. The primary function of Petitioner's service is to

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TSB-A-96 (48)S
Sales Tax
July 23, 1996

enable clients to meet other people. Accordingly, the service being provided by Petitioner is not a
service enumerated under Section 1105(c) of the Tax Law, and therefore, is not subject to sales tax.

DATED: July 23, 1996

/s/
John W. Bartlett
Deputy Director
Technical Services Bureau

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