NYS Tax Dept. Reminds New Yorkers
That USA, NYS, POW and Military
Flags Are Exempt From Sales Tax
The New York State Department of Taxation and Finance reminded all New Yorkers that flags of the United States, New York State, military service and prisoners of war are exempt from sales tax. The flags are fully exempt from State and local sales tax year-round no matter where in New York State they are purchased.
Military service flags are those that have been approved by the United States Secretary of Defense. These flags include the blue star and gold star banners that military families display in their windows.
In addition to the flags, certain military decorations, including ribbons, medals and lapel pins are exempt from sales tax when sold to an active member or veteran of the United States military. Accessories sold together with the flag to put it on display are free from sales tax as well.
The exemption for prisoner of war and military flags was authorized by legislation in 2012. The flags of the United States and New York State have been exempt since the sales tax was first enacted in 1965.