Sales Tax
A general sales tax is a tax obligation imposed on the gross revenue of the sale of goods, services and/or rentals within the Borough. As a business operating within the City, you are obligated to charge and collect the tax and remit to the City on the required tax forms in a timely manner. Sales Tax is computed at 5% of the selling price and added to the sales transaction.
Collecting the Sales Tax
The CBY sales tax levy is very broad. Your business is legally obligated to collect the sales tax on all sales of goods, services and/or rentals made within the Borough except for transactions specifically exempt by the Code. The sales tax you collect are considered held in trust and owned by the City.
The tax shall be stated separately on any sales receipt or slips, rent receipts, charge tickets, invoices, statements of account or other tangible evidence of sales. When disclosing the sales tax, your invoices and /or receipts must separately state the sales tax charged. If you have questions or concerns about proper disclosure, contact the Sales Tax Clerk.
Sales Tax Exemptions
The sales tax code contains a number of specific exemptions from the levy of the sales tax. Every customer claiming an exemption must provide you with adequate documentation. If they cannot or will not, you should charge them the sales tax. Your business must maintain documentation that supports all claimed exemptions. Each exemption requires specific documentation. See the Sales Tax Clerk for information on exemptions. The exemption information you keep must clearly document each transaction and be easy to track. You will need to report the total exemptions granted on your sales tax return form each period. Your exemption record is also subject to audit verification. Your business will be held liable for the sales tax on all undocumented sales.
Reporting & Remitting Sales Tax
Businesses are required to file sales tax returns for every reporting period. A return is due even if you have not conducted business or transacted any taxable sales during that period. Your business must timely remit the sales tax due or every reporting period. Penalties and interest are charged on late remittances. Forms are available at the CBY office. It is your responsibility to make sure you have the correct forms and filed on time.