Are stair lifts, patient lifts, home elevators and dumbwaiters sold to help disabled people exempt from New York sales tax as medical equipment or prosthetic aids?

Plain-English summary

Access Lifts & Ramps, Inc. sells and installs a range of equipment to help people with mobility limitations: Garaventa Stair-porters and Stair-tracs (motorized devices for moving a person or a wheelchair up and down stairs), Garaventa Evacu-tracs (gravity-powered emergency stair evacuation devices), CM Solution Patient Lifts (motorized systems to lift patients in and out of beds, wheelchairs, bathtubs and pools), several models of residential elevators (Minivator, Elevette, Classique, and a Limited Use/Limited Access "Flexilift"), and Inclinator "Homewaiters" (small home dumbwaiters). The company asked how sales tax applies across this whole product line.

The Department sorted the products into several buckets:

• Stair-porters, Stair-tracs, and Evacu-tracs are exempt medical equipment: they exist only to move people who can't manage stairs safely on their own -- comparable to wheelchairs or the rescue toboggans in an earlier ruling -- so they're not "generally useful" absent a disability.
• CM Solution Patient Lifts are exempt prosthetic aids, following an earlier ruling on pool lifts and similar devices that substitute for a lost physical function.
• Residential elevators (Minivator, Elevette, Classique, Flexilift) qualify as exempt prosthetic aids when installed in a private home for a disabled person's use -- but not in other buildings, or in a home for someone who isn't disabled. Separately, since installing one of these elevators is normally a capital improvement to real property, the company (acting as a contractor) doesn't have to charge tax on the installation at all if it gets a properly completed Certificate of Capital Improvement within 90 days, regardless of who the elevator is for.
• Inclinator Homewaiters are neither exempt medical equipment nor an exempt prosthetic aid -- a home dumbwaiter is "generally useful" whether or not anyone in the house has a disability, so it doesn't meet the "not generally useful absent illness or incapacity" test. But like the elevators, installing one can still be an untaxed capital improvement with the right certificate.
• The company's own purchases of this equipment from its suppliers are generally exempt too, as long as it gives its supplier a Resale Certificate (when the item stays personal property that the company resells or installs and passes through) or a Contractor Exempt Purchase Certificate (when installing for an exempt organization).

What this means for you

Accessibility equipment dealers and installers

The dividing line the Department uses again and again is whether a product is "generally useful in the absence of illness, injury or physical incapacity." A device that only exists to solve a mobility problem (a stair lift, a patient lift) clears that test easily; a general home convenience item (a dumbwaiter) does not, even when marketed for accessibility use. Separately, track whether your installation is a capital improvement -- that can zero out the tax on the installation charge entirely with the right paperwork, independent of whether the item itself is exempt.

Contractors installing accessible-home equipment

Get a Certificate of Capital Improvement (Form ST-124) within 90 days of the job whenever you install one of these devices as a permanent fixture -- it protects the installation charge from tax even for equipment (like a homewaiter) that doesn't separately qualify as exempt medical equipment or a prosthetic aid.

Homeowners and families of disabled individuals

A stair lift or patient lift purchase is very likely tax-exempt outright. A home elevator is exempt too, but only if it's genuinely for a disabled person's use in a private residence -- the same elevator installed for a non-disabled resident, or in a non-residential building, would be taxable (though the installation charge itself might still escape tax as a capital improvement).

Common questions

Q: Why is a homewaiter (dumbwaiter) taxable when a stair lift isn't?
A: Because a dumbwaiter is a generally useful convenience even for someone without a disability, while devices like stair lifts and patient lifts exist specifically to correct or work around a physical incapacity.

Q: Does the exemption depend on where the elevator is installed?
A: Yes for the prosthetic-aid exemption on the elevator itself -- it only applies in a private residence for a disabled occupant. Elsewhere, or for a non-disabled occupant, the elevator sale is taxable, though the installation labor might still be exempt as a capital improvement.

Q: Can another equipment dealer rely on this ruling?
A: No. This advisory opinion binds the Department only as to Access Lifts & Ramps, Inc. and the specific products and facts described.

Citations and references

Statutes and regulations:

• Tax Law § 1105(c)(3) (installation, maintenance, servicing and repair services)
• Tax Law § 1101(b)(9)(i) (definition of capital improvement)
• Tax Law § 1115(a)(3) (medical equipment exemption)
• Tax Law § 1115(a)(4) (prosthetic aids exemption)
• Tax Law § 1115(a)(15), (16), (17) (contractor real-property exemptions)
• Tax Law § 1115(g) (exemption for services on exempt prosthetic aids/medical equipment)
• 20 NYCRR § 528.4 (medical equipment)
• 20 NYCRR § 528.5 (prosthetic aids)
• 20 NYCRR § 541.1(c) (capital improvement by a contractor)
• 20 NYCRR § 532.4 (Certificate of Capital Improvement; good-faith reliance)

Prior rulings referenced:

• Plattekill Mountain Ski Center, Inc., Dec St Tx Comm, March 9, 1984, TSB-H-84(58)S
• Michael K. Leary, D/B/A Access Lifts, Adv Op Comm T&F, January 4, 1993, TSB-A-93(3)S
• Department Publication 822, Taxable Status of Medical Equipment and Supplies, Prosthetic Devices and Related Items (7/87)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1997.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a97_17s.pdf

Original ruling text

New York State Department of Taxation and Finance

Taxpayer Services Division
Technical Services Bureau

TSB-A-97(17)S
Sales Tax

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO.S960903A

On September 3, 1996, the Department of Taxation and Finance received a
Petition for Advisory Opinion from Access Lifts & Ramps, Inc., 2590 W. Ridge Rd.,
Rochester, NY 14626.
Petitioner, Access Lifts & Ramps, Inc., most recently
provided additional information pertaining to the Petition on November 4, 1996.
The issue raised by Petitioner, Access Lifts & Ramps, Inc., is whether the
purchase or installation of Garaventa Stair-porters, Garaventa Stair-tracs,
Garaventa Evacu-tracs, CM Solutions Patient Lifts, Minivator Residential
Elevators, Elevette Residential Elevators, Classique Elevators, Limited Use
Limited Access Flexilifts or Inclinator Homewaiters for use by disabled
individuals in residences and commercial buildings is subject to sales and use
taxes.
Petitioner submits the following facts as the basis for this Advisory
Opinion.
Petitioner sells and installs the following items.
The Garaventa Stair-porter is a freestanding versatile device, mounted on
wheels and rubber tracks, that allows an attendant to easily transport a person
who has mobility limitations up or down stairs. It may be used for everyday
access where elevators are not available, or to provide emergency egress, up or
down stairs, when elevators cannot be used. The passenger sits in a sling-seat
and is secured by leg and torso restraints. The passenger and the Stair-porter
are guided up (or down) the stairs by an attendant.
Whether ascending or
descending stairs, a motor ensures that the Stair-porter moves at a comfortable
speed. The Stair-porter may be folded, and stored near stairs in a storage
cabinet, mounted against the wall or recessed into it. The Stair-porter is key­
operated for security.
The Garaventa Stair-trac is a portable wheelchair lift, mounted on rubber
tracks and wheels, which attaches under most standard wheelchairs and allows an
attendant to transport a person in a wheelchair up and down stairways. The
Stair-Trac is motor-powered. The Stair-trac is also available with an optional
ambulatory seat for carrying people who are not in wheelchairs but have mobility
difficulties on stairs. The Stair-trac adapts to wheelchairs from adult to tot
sizes, and can be used on indoor or outdoor stairways. It does not require
installation or site modification.
It is key-operated to prevent use by
untrained or unauthorized persons.

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The Garaventa Evacu-trac is designed for use during an emergency such as
a fire or earthquake, when elevators cannot be used, to move injured people or
people with disabilities down stairways quickly and safely. The Evacu-trac is
a freestanding device mounted on rubber tracks and wheels. The Evacu-trac does
not contain a motor, but uses the passenger's weight to propel the unit down
stairs. The descent speed is limited by a built-in governor. On stairs, the
Evacu-trac can be brought to a complete stop by releasing the hand brake. Leg
and torso restraints hold the passenger firmly and securely in place.
The CM Solution Patient Lifts are power lift and transfer systems designed
to lift patients and disabled persons in and out of beds, wheelchairs, bathtubs,
pools, etc. The person sits in a sling while being lifted by the motorized
system. The lift and transfer systems adapt to a wide range of specific needs.
Standard or custom length overhead tracks are available with free standing fixed
or adjustable height legs for floor support installation. The overhead tracks
can also be attached to ceilings or walls.
The Minivator Residential Elevator has helped persons requiring wheelchairs
and with other disabilities gain access throughout their two-level homes. The
Minivator requires minimal construction to install. The elevator car rides on
two steel guide rails mounted directly to a load bearing wall. The Minivator is
able to travel up to sixteen feet and is equipped for two stops. The motor for
the Minivator is housed at the top of the guide rails requiring no overhead
clearance into the attic. No pit, machine room or hoistway is necessary like
traditional elevators. However, a 53" x 33" opening between the floors must be
constructed so that the elevator may pass through the opening for access to each
floor. The standard car is 30" x 46".
The Elevette Residential Elevators are custom made in-shaft elevators that
can be installed in residences to allow persons requiring wheelchairs and with
other disabilities to gain access throughout their multi-level homes. It adapts
easily to any preexisting space requirement. Handling weights of 500 or 750
lbs., the Elevette Residential Elevator can be fitted with up to three gates,
permitting access to different floors from different sides of the elevator car.
It operates on a monorail steel channel, with a cantilever suspension. In some
cases, a minimum 9 inch pit and 8 foot overhead are required. When constructed
in the largest size of 12 square feet, the Elevette can accommodate most
wheelchair patients along with an attendant.
The Classique Residential Elevator is less costly than a traditional
elevator and space efficient. It fits in a hoistway as small as 50" x 55" and
requires only a 9 inch pit. Its design provides easy installation and maximum
passenger security. The carriage mounted car travels on a vertical track. The
independently mounted 2 HP motor features a self-locking gearbox and fail-safe
brake on the input shaft. The compact winding drum, dual steel cable suspension
drive system offers 750 lbs. load capacity. The car can travel up to 32 feet
with a maximum of six stops. The standard car is 36" x 48" inside and can
accommodate a passenger seated in a wheelchair with a standing companion.

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The Limited Use Lifted Access Flexilift elevator system requires less space
than traditional elevators because of its smaller platform, compact automatic
door design, reduced overhead space requirement and shallow pit. A standard wall
support structure system attaches to a load bearing wall to support and provide
easy installation of the guide rails and hydraulic jack. The flexi-structure
option is a prefabricated steel box frame that fits inside irregular hoistways
and anchors to the existing walls to adapt to varying site conditions. The
Flexi-lift elevator requires a minimum overhead clearance of 9'-6" and a minimum
14 inch deep pit. The elevator's maximum rated load shall not exceed 1,400
pounds and the inside platform area may be up to 54" x 54".
As part of its Petition, Petitioner submitted a copy of the American
Society of Mechanical Engineers (ASME) safety code for elevators and escalators.
ASME defines a limited-use/limited application elevator to be "a power passenger
elevator where the use and application is limited by size, capacity, speed, and
rise, intended principally to provide vertical transportation for people with
physical disabilities."

Due to building code restrictions, an elevator is sometimes necessary to
meet the needs of the disabled individual.
Building codes mandate that
wheelchair lifts cannot penetrate a floor and cannot lift higher than twelve
feet.
All the above described elevators are sold by Petitioner with
installation.
The Inclinator Homewaiter (dumbwaiter) can travel up to 35 feet, opening
on any or all three sides at different stations, either at counter level or floor
level. The drive unit can be placed at the base of the hoistway, overhead, or
adjacent at any level, and requires ordinary 115 v, 15 AMP house current on its
own circuit. The car can be as large as 24"x24"x24" and is built of 16 gauge
steel panels attached to a heavy-gauge steel base and hoisted by aircraft quality
cable. It will carry up to 75 lbs. The fully automatic controls allow calling
or dispatching from any station, with optional key operated switches available.
Applicable Law and Regulations
Section 1105 of the Tax Law imposes sales tax upon:
(a)
The receipts from every retail sale of tangible personal
property, except as otherwise provided in this article.
*
(c) The receipts from
following services:
*

*
every

sale,

*

*
except

for

resale,

of

the

*

(3) Installing tangible personal property, excluding a mobile
home, or maintaining, servicing or repairing tangible personal
property, including a mobile home, not held for sale in the regular

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course of business, whether or not the services are performed
directly or by means of coin-operated equipment or by any other
means, and whether or not any tangible personal property is
transferred in conjunction therewith, except:
*

*

*

(iii) for installing property which, when installed, will
constitute an addition or capital improvement to real property,
property or land, as the terms real property, property or lands are
defined in the real property tax law as such term capital
improvement is defined in paragraph nine of subdivision (b) of
section eleven hundred one of this chapter. . . (emphasis added)
Section 1101(b)(9)(i) of the Tax Law provides as follows:
(9) Capital improvement.
real property which:

(i) An addition or alteration to

(A) Substantially adds to the value of the real property, or
appreciably prolongs the useful life of the real property; and
(B) Becomes part of the real property or is permanently
affixed to the real property so that removal would cause material
damage to the property or article itself; and
(C) Is intended to become a permanent installation.
Section 1115(a) of the Tax Law provides, in part, as follows:
Sec. 1115. Exemptions from sales and use taxes.--(a) Receipts
from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten:
*

*

*

(3) Drugs and medicines intended for use, internally or
externally, in the cure, mitigation, treatment or prevention of
illnesses or diseases in human beings, medical equipment (including
component parts thereof) and supplies required for such use or to
correct or alleviate physical incapacity, and products consumed by
humans for the preservation of health but not including cosmetics or
toilet
articles
notwithstanding
the
presence
of
medicinal
ingredients therein or medical equipment (including component parts
thereof) and supplies, other than such drugs and medicines,
purchased at retail for use in performing medical and similar
services for compensation.
(4) Prosthetic aids, hearing aids, eyeglasses and artificial
devices and component parts thereof purchased to correct or
alleviate physical incapacity in human beings.

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*

*

*

(15) Tangible personal property sold to a contractor,
subcontractor or repairman for use in erecting a structure or
building of an organization described in subdivision (a) of section
eleven hundred sixteen, or adding to, altering or improving real
property, property or land of such an organization, as the terms
real property, property or land are defined in the real property tax
law; provided, however, no exemption shall exist under this
paragraph unless such tangible personal property is to become an
integral component part of such structure, building or real
property.
(16) Tangible personal property sold to a contractor,
subcontractor or repairman for use in maintaining, servicing or
repairing real property, property or land of an organization
described in subdivision (a) of section eleven hundred sixteen, as
the terms real property, property or land are defined in the real
property tax law; provided, however, no exemption shall exist under
this paragraph unless such tangible personal property is to become
an integral component part of such structure, building or real
property.
(17) Tangible personal property sold by a contractor,
subcontractor or repairman to a person other than an organization
described in subdivision (a) of section eleven hundred sixteen, for
whom he is adding to, or improving real property, property or land
by a capital improvement, or for whom he is about to do any of the
foregoing, if such tangible personal property is to become an
integral component part of such structure, building or real
property; provided, however, that if such sale is made pursuant to
a contract irrevocably entered into before September first, nineteen
hundred sixty-nine, no exemption shall exist under this paragraph.
(emphasis added)
Section 1115(g) of the Tax Law provides in part:
Services otherwise taxable under paragraph (3) of subdivision
(c) of section eleven hundred five shall be exempt from tax (1) if
performed upon prosthetic aids, hearing aids, eyeglasses, artificial
devices or medical equipment when receipts from the retail sale of
such items are exempt from tax under the provisions of paragraphs
three and four of subdivision (a) of this section ....
Section 528.4 of the Sales and Use Tax Regulations provides, in part:
*

*

*

(e) Medical equipment. (1) Medical equipment means machinery,
apparatus and other devices (other than prosthetic aids, hearing
aid, eye glasses and artificial devices which qualify for exemption
under section 1115(a)(4) of the Tax Law), which are intended for use

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in the cure, mitigation, treatment or prevention of illness or
disease or the correction or alleviation of physical incapacity in
human beings.
(2) To qualify, such equipment must be primarily and
customarily used for medical purposes and not be generally useful in
the absence of illness, injury or physical incapacity.
Example 1: Items such as hospital beds, wheel chairs,
hemodialysis equipment, iron lungs, respirators, oxygen
tents, crutches, back and neck braces, trusses, trapeze
bars, walkers, inhalators, nebulizer and traction
equipment are exempt medical equipment.
Section 528.5 of the Sales and Use Tax Regulations provides, in part:
Section 528.5. Prosthetic aids.--(Tax Law Secs. 1115(a)(4),
1115(g)). (a) Exemption. Prosthetic aids, hearing aids, eyeglasses
and artificial devices and component parts thereof, purchased to
correct or alleviate physical incapacity in human beings are exempt
from the tax.
(b)
Qualifications. (1) In order to qualify as a prosthetic
aid, a hearing aid, eyeglasses or an artificial device, the property
must either completely or partially replace missing body part or the
function of a permanently inoperative or permanently malfunctioning
body part and must be primarily and customarily used for such
purposes and not be generally useful in the absence of illness,
injury or physical incapacity.
*

*

*

Example 7: Items installed on motor vehicles to make them
adaptable for use by handicapped persons are exempt. Such items may
include special controls for paralytics or amputees and automotive
lifts designed for the use of handicapped individuals for entry into
motor vehicles.
*

*

*

(2)
Parts, special attachments, special lettering, etc. that
are added to or attached to tangible personal property, such as
appliances, so that a handicapped person can use them are exempt.
If tangible personal property is sold with special controls,
lettering or devices, and the additional charge for the added
features is separately stated on the bill for the tangible personal
property, that portion of the sales receipts attributable to the
added features is exempt. In determining whether the extra amount
charged for the special controls, lettering or devices is
reasonable, like items exclusive of the added features should be
compared with the same item with the added features.

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*

*

*

(c)
Replacement parts. (1) Replacement parts for prosthetic
aids, hearing aids, eyeglasses and artificial devices must be
identifiable as such at the time the retail sale is made. If the
replacement parts are not identifiable parts for prosthetic aids,
the purchaser must pay the tax at the time of purchase.
The
purchaser may apply to the Sales Tax Bureau for a refund of the tax
paid provided he can show that the replacement parts were used on
exempt prosthetic aids.
*

*

*

Receipts from installing,
(d)
Servicing and repairing.
maintaining, servicing and repairing prosthetic aids, hearing aids,
eyeglasses and artificial devices are exempt from the tax imposed by
paragraph (3) of subdivision (c) of section 1105 of the Tax Law, if
the items upon which such services were performed are exempt. If
tangible personal property of the sort described in paragraph (2) of
subdivision (b) of this section is repaired, maintained, or
serviced, only that portion of the charge attributable to the
features added for the use of the handicapped is exempt from the
tax, and only if the charge is separately stated on the service
bill. (emphasis added)
Section 541.1(c) of the Sales and Use Tax Regulations provides that
“[r]eceipts from the performance of a capital improvement to real property by a
contractor are not subject to the sales tax.”
In Plattekill Mountain Ski Center, Inc., Dec St Tx Comm, March 9, 1984,
TSB-H-84(58)S the Tax Commission held that the purchase by the petitioner of
rescue toboggans to transport injured skiers off its mountains and which were of
no use in the absence of illness or injury, constituted medical equipment
qualifying for the exemption of Section 1115(a)(3) of the Tax Law.
In Michael K. Leary, D/B/A Access Lifts, Adv Op Comm T&F, January 4, 1993,
TSB-A-93(3)S, it was concluded that power door openers that are operated by
specialty sip or puff controls, pool lifts, stairway lifts, vertical wheelchair
lifts and incline wheelchair lifts constitute devices purchased to correct or
alleviate physical incapacity in human beings and, thus, the purchases of such
devices are exempt from sales tax pursuant to Section 1115(a)(4) of the Tax Law.
Power door openers that can be operated by controls other than the sip or puff
method are not entitled to the exemption.
Opinion
In this case Petitioner sells Garaventa Stair-porters, Garaventa Stair­
tracs and Garaventa Evacu-tracs to assist in transporting persons with mobility
limitations up and down stairs by either sitting in the device or attaching a
wheelchair to the device.
Section 1115(a)(3) of the Tax Law provides that
receipts from the retail sale of medical equipment shall not be subject to sales

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tax, provided that such medical equipment is not purchased at retail for use in
performing medical and similar services for compensation. Section 528.4 of the
Sales and Use Tax Regulations defines medical equipment to mean machinery,
apparatus and other devices which are intended for use in the cure, mitigation,
treatment or prevention of illness or disease or the correction or alleviation
of physical incapacity in human beings. Example 1 of Section 528.4 of the Sales
and Use Tax Regulation provides that wheelchairs constitute exempt medical
equipment. Moreover, in Plattekill Mountain Ski Center, Inc., supra, rescue
toboggans used to transport injured skiers off a mountain were held to be medical
equipment.
Accordingly, receipts from the retail sale of Garaventa Stair­
porters, Garaventa Stair-tracs and Garaventa Evacu-tracs constitute receipts from
the sale of exempt medical equipment and are not subject to sales and
compensating use tax, provided such devices are not purchased at retail for use
in performing medical and similar services for compensation.
Petitioner's
purchases of these items from its suppliers are also not subject to sales and
compensating use tax, since they are purchased for resale, provided Petitioner
furnishes the supplier a properly completed Resale Certificate.
As for the sale of CM Solution Patient Lifts which are designed to lift
patients and disabled persons in and out of beds, wheelchairs, bathtubs, pools,
etc., Section 1115(a)(4) of the Tax Law and Section 528.5 of the Sales and Use
Tax Regulations provides that the receipts from the retail sales of prosthetic
aids shall not be subject to sales tax. In Michael K. Leary, D/B/A Access Lifts,
supra, pool lifts used to lift disabled persons in and out of pools were held to
prosthetic aids. CM Solution Patient Lifts which are designed to lift patients
and disabled persons in and out of beds, wheelchairs, bathtubs and pools
constitute prosthetic aids. Therefore, receipts from the sale and installation
of CM Solution Patient Lifts are not subject to sales and compensating use tax.
Petitioner's purchases of this equipment from its suppliers are also not subject
to sales and compensating use tax, since they are purchased for resale, provided
Petitioner furnishes the supplier with a properly completed Resale Certificate.
With respect to the sale of Inclinator Homewaiters, in order for machinery,
apparatus or other devices to qualify as medical equipment, such machinery,
apparatus or other devices must be primarily and customarily used for medical
purposes and not be generally useful in the absence of illness, injury or
physical incapacity.
Moreover, to qualify as a prosthetic aid, an artificial
device must either completely or partially replace a missing body part or the
function of a permanently inoperative or permanently malfunctioning body part and
must be primarily and customarily used for such purpose and not be generally
useful in the absence of illness, injury or physical incapacity. Home waiters
can be generally useful in the absence of illness, injury or physical incapacity
and are not primarily and customarily used for medical or prosthetic purposes.
Therefore, home waiters do not qualify as medical equipment or prosthetic aids.
In distinguishing Michael K. Leary, D/B/A Access Lifts, supra, stairway lifts,
vertical wheelchair lifts and incline wheelchair lifts are primarily and
customarily used to completely or partially replace a missing body part or the
function of a permanently inoperative or permanently malfunctioning body part and
are not generally useful in the absence of illness, injury or physical

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incapacity. Accordingly, receipts from Petitioner's sale and installation of
Inclinator Home Waiters are not exempt under Sections 1115(a)(3) and (4) and
1115(g) of the Tax Law from the imposition of sales or compensating use tax,
unless the purchaser is an exempt organization under Section 1116(a) of the Tax
Law.
Elevators will qualify as prosthetic aids under Section 1115(a)(4) of the
Tax Law when installed in a private residence for use by a disabled person. See
Publication 822, Taxable Status of Medical Equipment and Supplies, Prosthetic
Devices and Related Items, (7/87).
Elevators will not qualify as prosthetic
aids when installed in buildings other than private residences or when installed
in a residence for use by a person who is not disabled. It should be noted,
however, that pursuant to Section 1115(a)(17) of the Tax Law the sale of tangible
personal property by a contractor, subcontractor or repairman to a person for
whom he is adding to, or improving real property, property or land by a capital
improvement is not subject to sales tax.
Moreover, pursuant to Section
1105(c)(3)(iii) of the Tax Law and Section 541.1(c) of the Sales and Use Tax
Regulations, receipts from the installation of a capital improvement to real
property by a contractor are not subject to sales or use tax. The installation
of the Minivator Residential Elevators, Elevette Residential Elevators, Classique
Elevators, Limited Use Limited Access Flexilifts and Inclinator Homewaiters may
constitute a capital improvement pursuant to Section 1101(b)(9)(i) of the Tax
Law. Since Petitioner sells the elevators and home waiters with installation,
Petitioner is acting as a contractor. Therefore, Petitioner is not required to
collect sales tax on receipts from the sale and installation of such elevators
and home waiters if Petitioner receives a properly completed Certificate of
Capital Improvement (Form ST-124) within 90 days after rendering services. See
Section 532.4 of the Sales and Use Tax Regulations. Petitioner is not required
to collect sales tax on the sale of an elevator or home waiter, and the
installation service, to an organization exempt from tax under Section 1116(a)
of the Tax Law, even if the installation does not result in a capital
improvement, if Petitioner timely receives appropriate documentation of the
purchaser's exempt status.
See Section 541.3 of the Sales and Use Tax
Regulations.
Petitioner's purchases of elevators and home waiters from the manufacturer
or suppliers will be subject to sales tax, except where such elevators or home
waiters are purchased for resale, as when the purchaser installs them and they
remain tangible personal property after installation, or they are purchased for
installation in real property owned by an organization exempt from tax under
Section 1116(a) and they become an integral component part of the realty (see
Sections 1115(a)(15),(16) of the Tax Law). In these cases, Petitioner should
present its suppliers with a properly completed Form ST-120.1, Contractor Exempt
Purchase Certificate, within 90 days of the purchase date in order to make exempt

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purchases. Otherwise, Petitioner must pay tax on its purchases of elevators and
home waiters. Petitioner may claim a credit or refund, however, of sales and
compensating use tax paid on the purchase of an elevator that is installed in a
private residence for use by a disabled person.

DATED:

March 27, 1997

NOTE:

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

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