Starting your own business is an exciting venture that can give you a huge sense of accomplishment. If you own a business in New York, it may be subject to certain taxes. You should know what to expect so that you’re in compliance with the law and there are no surprises when taxes are due.
What additional taxes can your business be responsible for paying?
Under the laws of business formation and planning, your business may be responsible for paying additional taxes on top of the standard taxes. If your business falls under any of the following categories, you may have to pay these certain additional taxes:
- It’s located within the Metropolitan Commuter Transportation District: If it’s located within this area, your business must pay the Metropolitan Commuter Transportation Mobility Tax.
- You sell, possess or produce cigarettes or any other tobacco products: If you decide, during business formation and planning, that your business is going to be selling, possessing or producing cigarettes and other tobacco products, you’re required to pay a cigarette and tobacco products tax.
- You sell, produce or import alcoholic beverages: If your business is a bar or other establishment that sells alcoholic beverages or if it’s a liquor store or you produce or import alcoholic beverages, you are required to pay an alcoholic beverage tax. You may also refer to the Division of Alcoholic Beverage Control.
- You sell, import or produce petroleum products: If your business sells, imports or produces petroleum products, you are required to pay the petroleum business tax.
- You operate trucks that weigh over 18,000 pounds on the state’s public highways: If your business operates a truck or trucks that weigh more than 18,000 pounds on New York State public highways, your business must pay the highway use tax and fuel use tax.
- You sell tires or vehicles with tires: Your business is required to pay the waste tire management fee if it sells tires or vehicles with tires.
- You own a taxi cab or lease one for 30 or more days and it operates in New York City: If your business owns or leases a taxi cab in the New York City area for 30 days or more, you’re responsible for paying the medallion taxicab rides in the Metropolitan Commuter Transportation District tax.
Other reporting requirements
You may also have to report additional requirements depending on your type of business. You may have to report annually if you fall under one of the following categories:
- Alcoholic beverage wholesaler
- Insurer of motor vehicles
It’s essential to pay the additional business taxes to which your business is subject. It can help you stay on top of the law and continue operating.