Is a personal matchmaking and dating service subject to New York sales tax?

Plain-English summary

Gregg Millett, a psychologist launching a dating service business, asked whether his $185 flat-fee service (with a money-back guarantee after a six-month trial) is subject to New York sales tax. He described two ways clients connect: Petitioner uses his education and psychology background to interview clients and identify compatible matches, then contacts both individuals to arrange a meeting; alternatively, clients can browse an album of profiles and photos and ask Petitioner to arrange a meeting with someone who catches their interest. Along the way, Petitioner also counsels clients about their past relationships and expectations.

Tax Law § 1105(c) taxes only a specific list of enumerated services -- anything not on that list isn't taxable no matter how the business is structured or what expertise goes into it. The Department found that Petitioner's core function -- bringing together people with similar interests who wouldn't otherwise have known about each other, and giving them the opportunity to meet -- doesn't correspond to any enumerated taxable service category. The incidental counseling component didn't change that conclusion; the Department characterized the "primary function" of the service as facilitating introductions, and that framing was decisive.

What this means for you

Dating services, matchmakers, and similar introduction-focused businesses

If your core service is bringing people together and facilitating introductions -- even when paired with some interview-based counseling or profile-browsing features -- this opinion supports treating your fees as outside New York's enumerated taxable services. Keep the "primary function" framing in mind: a business that layers substantial separate taxable services (like selling tangible goods or another enumerated service) alongside the matchmaking could face a different analysis for that portion.

Clients of dating and matchmaking services

Expect flat fees for introduction-focused dating services to come without New York sales tax added, consistent with this opinion.

Common questions

Q: Does it matter whether the matching is done by expert interview or by letting clients browse a profile album?
A: No -- both methods described in this opinion were treated the same way, since the Department's analysis turned on the service's overall purpose (facilitating introductions), not the specific matching method.

Q: Does adding relationship counseling to a dating service change the tax treatment?
A: Not in this case -- the Department characterized the counseling as part of a service whose "primary function" remained bringing people together, and didn't treat it as pulling the service into a taxable category.

Q: Can another dating or matchmaking business rely on this ruling?
A: No. This advisory opinion binds the Department only as to Gregg Millett and the specific facts he described; a business with a different service mix (for example, one that also sells tangible goods or another taxable service) 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_52s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-96 (52)S
Sales Tax
September 5, 1996

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO.S960411C

On April 11, 1996, a Petition for Advisory Opinion was received from Gregg Millett, Ph.D.,
738 Bobby Court, Niskayuna, New York 12309.
The issue raised by Petitioner, Gregg Millett, is whether the dating service being provided
by him is subject to sales tax. Additional information was verbally provided on July 25, 1996.
Petitioner makes the following submission of facts.
Petitioner is starting a business which he indicates is a dating service. Petitioner will use his
expertise in education and psychology to make compatible matches and counsel his clients about
their past relationships, their expectations for the future and experience in meeting new people.
Petitioner intends to seek clients and charge a $185 fee for this service, which includes a money back
guarantee, after a six-month trial period for those who do not feel it was a valuable service for them.
Petitioner provides two types of dating arrangements. The first type is where the Petitioner will
match two individuals using the information provided by the clients and his interview notes
concerning the clients. When Petitioner anticipates a possible match, he will contact the individuals
to make suitable arrangements so the individuals can meet each other.
Secondly, the client can look through an album which features a picture and a summary of
the prospective date's interests. If a client sees an individual that meets his or her standards, the
Petitioner will take appropriate action to set up a meeting between the individuals.
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 his clients with the service of bringing together people, who
have similar interests, and provides them the opportunity to meet other persons. Petitioner's clients
would not have known about each other without Petitioner's service. Clients can be counseled about
their experiences, expectations for the future and experience in meeting new people and the possible
matching with other individuals. The primary function of Petitioner's service is to enable clients to

-2­
TSB-A-96 (52)S
Sales Tax
September 5, 1996

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

DATED: September 5, 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.