(a)
Services to real property. A contractor may purchase the service of trash or
debris removal without payment of tax as a purchase for resale provided that:
(1) the contractor generated the trash or
debris being removed from real property, property or land as a result of the
contractor's performance of the service of maintaining, servicing or repairing
such real property, property or land;
(2) the contractor's agreement with the owner
or authorized occupant of such real property, property or land for whom the
contractor performed such service provides that the contractor is responsible
to have such trash or debris removed; and
(3) the contractor furnishes to the person
performing such trash or debris removal service a properly completed
contractor's exempt purchase certificate.
In such circumstances, the contractor's total charges to
such owner or authorized occupant for such service of maintaining, servicing or
repairing such property and for such trash or debris removal service are
subject to tax. However, if the purchaser is an exempt organization described
in section
1116(a) of the Tax Law and
gives the contractor a properly completed exempt organization certification,
then such service would be exempt.
(b) Capital improvements. A contractor may
purchase the service of trash or debris removal without payment of tax where:
(1) the contractor performs work which
constitutes a capital improvement, to real property, property or
land;
(2) the contractor generated
the trash or debris to be removed from such real property, property or land as
a result of such work;
(3) the
contractor obtains a properly completed certificate of capital improvement from
the contractor's customer; and
(4)
the contractor or such customer furnishes a copy of such certificate to the
person performing such trash or debris removal service.
Since the contractor's purchase of the trash or debris
removal service is in conjunction with the performance of a capital
improvement, the contractor's total charge to its customer for the capital
improvement is not subject to tax.
