A lump sum charge by a scaffolding company for the rental and service of installing scaffolding, safety netting, hoisting equipment, and temporary pedestrian walkways is subject to sales tax unless the installation is a “temporary facility” at a construction site necessary to the construction of a capital improvement to real property. Advisory Opinion, TSB-A-13(11)S (N.Y.S. Dep’t of Taxation & Fin., Apr. 11, 2013). If the walkway is a qualifying “temporary facility,” the lump sum charge will not be taxable. If the company separately states the charge for installing and dismantling the temporary pedestrian walkway, it will not be subject to sales tax if the separately stated charge is reasonable in relation to the total price. However, the separate charge for the rental of the walkway would be taxable.
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Lump sum charge for providing scaffolding, including temporary pedestrian walkways, is subject to sales tax unless walkway is a “temporary facility”
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