Tax Break for Odd Jobs and Household Projects in Cortlandt and Peekskill

Here's a good reason to hire a neighbor's kid this summer to do odd jobs.

The New York State Department of Taxation and Finance reminds New Yorkers that they aren’t required to pay sales tax for projects done on their property when the work is done by someone who’s not operating in a regular trade or business.

If a student mows a neighbor’s lawn for a fee, for example, that service isn’t taxed. The tax break applies to other kinds of repair and maintenance services as well, such as car washing or bike repair.

“This summer, many teenagers and young adults will be helping their neighbors while earning cash for school and other expenses,” said New York State Commissioner of Taxation and Finance Jerry Boone in a written statement. “Homeowners and renters who hire someone to help them with a piece of work can relax knowing that sales tax isn’t owed, as long as that individual isn’t performing the services as part of a regular business.”

But remember: If services are provided by someone who regularly does them as part of a business, they are subject to sales tax.

For example, sales tax must be collected on lawn mowing services provided by a lawn care company or other registered business. 

Examples of taxable and tax exempt services:

• Tax exempt: A homeowner pays a college student to clean and wax his car.
• Tax exempt: A student paints a neighbor’s fence and washes her windows.
• Taxable: A business charges for car washing and waxing services.
• Taxable: A person advertises in the newspaper that they’re available for home repairs on  weekends and during evening hours.

For more information:
• Do I need to register to collect sales tax?
• New York State sales tax guide
• Sales tax rates by jurisdiction