The New York State Department of Taxation and Finance administers the state’s business taxes, including sales tax, withholding tax, and corporate and pass-through entity taxes. For many Long Island businesses, its most important role is issuing the sales tax Certificate of Authority.
Any business that makes taxable sales in New York, including retail goods, restaurant meals, and certain services, must register and receive a Certificate of Authority before its first taxable sale, and the department asks businesses to apply at least 20 days before they begin. Registration is free and done online through New York Business Express. The Certificate must be displayed at the place of business, and each location needs its own. The department’s Online Services account is also where businesses file sales tax returns, make payments, and receive notices.
Retailers, restaurants, and service businesses with taxable sales should register before opening.
Sales tax rates combine the 4% state rate with local rates, and in both Nassau and Suffolk counties the combined rate is 8.625%. Returns may be due monthly, quarterly, or annually depending on sales volume, and late filing brings penalties and interest.
For Long Island businesses opening a storefront or selling online, getting the Certificate of Authority in place early avoids a costly delay.