NY Sales Tax (vent)

NY Sales Tax (vent)

For those of you who don't know (though I'm sure many of you do...I'm just out of the loop being in DC), NY Sales tax went up, at least in Suffolk county, to 8.75% ( ) as of June 1. We have been receiving letters now from our vendors, even though we booked 2 yrs ago, that they need to adjust our contracts accordingly. So we are now paying MORE than we had contracted for!! It doesn't seem like it should be legal to me but apparently it is not only legal, but required. Anyway, I'm not exactly thrilled about this new development and thought I'd give people the 'heads up,' just in case...

Re: NY Sales Tax (vent)

How much is it in Nassau now???

Re: NY Sales Tax (vent)

allison if it was paid for 2 years ago then can not charge you for it now i would argue that. because it that were the case you would have paid them 2 years later for the amount and could have saved it in an account and made interest off it. if you put it that way then they will back off. on the date that you paid for the service is the date you pay that tax rate. thats like if you pay for a vacation and go on it 2 years later they dont charge you for tax for todays date.

Re: NY Sales Tax (vent)

If you technically didn't pay for the service yet, I think they have to charge you the added tax.

Re: NY Sales Tax (vent)

did you pay any portion of your contract yet? if not - then they can definitely adjust your contract. the vendor will be required to remit the new rate to the state, so it only makes sense that he will charge you the new rate.

Re: NY Sales Tax (vent)

unless you paid IN FULL already, they are absolutely required to charge you the added tax - it's not cause they have a choice, its because they are required by law to do so, and I doubt any vendor is going to offer to take the difference out of their profit for you.

Sorry

Re: NY Sales Tax (vent)

We've paid everything but the final installment, which comes due July 3. UGH, this is such a bummer, especially since we are already out $$ for not meeting the silly guarantee deal my dad made with them.

Re: NY Sales Tax (vent)

Not only that, but they put tax on clothing again. How do they expect the economy to rebound, and for people to keep shopping if they do that!

Re: NY Sales Tax (vent)

I know somethig about the Sales Tax and service law because I had to update the rates and contracts for our company's financial system since we are a service organization. (It's a huge mess). Anyway, rates went up effective June 1 for any new contract. On any existing contract, the increase does not take effect until September. (I am not sure how they need to adjust partial payments though!)

Re: NY Sales Tax (vent)

Here is the explanation I got from our hall. Guess it makes sense. Although I'm still not happy about it.

>>As for the sales tax increase we have no control over it an we think it stinks!! Even though you signed a contract 2 years ago the contract only lists the word 'tax' and not the amount. It reads that way because of situations like this one where the tax is increased, tax is a state law not something that we can bind with a contract so our only choice is to list it as 'tax' and not the actual percentage. Our boss was on the phone with the N.Y. state tax dept. right after we were informed of the increase, he tried explaining how catering works and that there have been substantial deposits made by our clients etc... The outcome is that because each client is purchasing (1) thing (in other words you are not purchasing something each time you make a deposit) which is a service, something that is not tangible... the tax rate that has to be paid is the rate that is in effect when the services are provided. I hope that makes sense... little hard for me to explain. If you were to call the tax department they may be able to explain a little better.

Re: NY Sales Tax (vent)

he he move to NJ it is 3%

Re: NY Sales Tax (vent)

Well I LIVE in Virginia where it's 4.5%. But I'm not getting married there.