NYC-WTC_000195490

NYC 9/11 Public Portal Document

SALES AND USE TAX SALES TAX 1992-2002

The sales and use tax is projected to 4.0 account for 16.5 percent of total tax revenue in 2002, or $3,710 million. 3.5

Tax Base and Rati; The sales tax ! 3.0 / rate is four percent and applies to: (1) sales and use of tangible personal 2.5 property and services; (2) sales of gas, electricity,; steam, refrigeration, and 2.0 intrastate (telephone and telegraph services; (3) food and beverages sold by 1.51------ —-J----- -J------ L__J------ L----- ------------- ------ restaurants and caterers; (4) hotel and 1992 1993,1994 1995 1996 1997 1998 1999 2000 2001 2002 motel occupancies; (5) admission charges Fiscal Year to certain places of amusement; and (6) ■h«mmmmmmhm«m«*««mmhmmm^mm«mm» club dues. Exemptions include food (except certain drinks, candies and alcoholic beverages), rent, prescription ^rs and non-prescription drugs, newspapers and periodicals, textbooks for college! students, and public transportation. These exemptions are designed to reduce the regressivity of the tax. Exemptions are also allowed for purchases of tangible goods and services intended for resale. The tax does not apply at the time of purchase for resale, but 76 rather at'the time the items are sold at retail. Other exemptions include fuel sold to airlines, energy used for ed research and development, transmission and distribution of energy (to be phased in over four years beginning September 1, 2000), certain promotional materials, internet access services, interstate and international telecommunications services, and clothing and footwear purchases under $110, With the State sales tax rate of fal four percent, and a 0.25 percent sales tax in the Metropolitan Commuter Transportation District, the aggregate in sales tax rate in the City is 8.25 percent.

ifli Retail trade, comprising 46.5 percent of the sales tax base, is the largest expenditure category. Business services and other services combined account for 21.1 percent of the sales tax base. Since 1981 the proportion of ih

IX business services in the taxable base has increased from 3.7 percent to 9.1 percent, making it the fastest growing component of the base. Various business and utility expenditures make up the remainder of the tax base. ' S6 id COMPONENTS OF THE SALES TAX BASE w 11 b March 19^ - February 1999 HMM Services 12.0% ii

N Business Services 9.1%

Manufacturiiig 5.8% Retail Trade 46.5% Communication, 6.1% I Construction 2.1%

Electric & Gas 6.6%j

All Other 4.6%

Wholesale Trade 7,2% I ■■■■■■

69 I 'I 1 i

NYC-WTC_000195566