Window Blind Capital Imrpovement Court Hearing
Petitioner submits the following facts.
Petitioner is a New York homeowner. Prior to the completion of the
original construction of Petitioner’s home, Petitioner hired a contractor to
provide and install original equipment in the new home, consisting primarily of
custom-made window treatments and window treatments. The window coverings may be floor-to-ceiling units
resembling louvered doors. The window coverings resemble venetian window treatments though custom
fitted and made of wood. The contractor also provided and installed window
casings, frames, sills and aprons in connection with the window treatments and window coverings.
The amount charged by the contractor for materials and labor was in excess of
$70,000, and Petitioner paid sales tax on this amount. Given their prevalence
throughout the premises, the window coverings, window treatments and related woodwork add materiallyto its ambiance and would be a significant consideration to any prospective buyer.
The window treatments, window coverings and related woodwork were installed over a period of
weeks and permanently drilled into place. Glue was also used to affix the
woodwork to the walls. Removal of the contractor’s work would cost thousands
of dollars in labor, would significantly damage the surrounding woodwork,
resulting in costly repairs, and in many cases, could not be done without
damaging the articles themselves. The articles have been custom fitted to the
spaces they occupy. There is no intention to remove them.
Applicable Law and RegulationSection 1101(b)(9) of the Tax Law defines a capital improvement as follows:Capital improvement. (i) An addition or alteration to realproperty which:
(A) Substantially adds to the value of the real property, or
appreciably prolongs the useful life of the real property; and
(B) Becomes part of the real property or is permanently affixed to
the real property so that removal would cause material damage to
the property or article itself; and
(C) Is intended to become a permanent installation.
TSB-A-98(9)S
Sales Tax
Finances
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