1. (1) All tangible personal property sold or rented to funeral directors for use in conducting funerals shall not be deemed to be for resale and shall be taxable to funeral directors. Example 1: Example 2:

   Example 1:

   Caskets, urns, monuments, rough boxes and clothing are examples of property subject to tax when purchased by a funeral director.

   Example 2:

   The sale of an installed burial vault to a funeral director is the sale of a capital improvement to real property. However, the sale of an uninstalled burial vault to a funeral director is taxable and not considered a sale for resale.

2. (2) The charges for repairs to a funeral director's equipment, embalming table, casket bier and for repairing, recovering or reupholstering a casket are all subject to tax.
3. (3) The furnishing of vehicles to funeral directors is a taxable rental rather than an exempt transportation service.

4. (4) A funeral director must pay sales tax on his purchases of tangible personal property for use in a funeral which will be paid for by the Social Security Administration, the Armed Forces, Veterans Administration, a welfare agency or a fraternal, charitable or religious organization.

   (c) Taxable transactions.

   Funeral directors who carry on taxable activities not in the performance of their professional services such as the rental of limousines, hearses or chairs are required to register as vendors, collect the tax and file returns.

   (d) Related transactions.

5. (1) The sale of a grave site, cemetery lot or burial right is the sale of an interest in real property, and exempt.
6. (2) The opening and closing of graves is a nontaxable service.
7. (3) The transferring of a casket from one grave to another or from a vault to a grave is a nontaxable service.
8. (4) The installation of grave markers is a capital improvement to real property.
9. (5) The sale with installation of a monument and the engraving of an inscription on a monument are capital improvements to real property and not subject to tax. However, the monument dealer must pay sales or use tax upon the price paid for stone, finished monuments, cement, and other tangible personal property used in capital improvements.
10. (6) Cleaning, repairing or maintaining monuments or grave sites are taxable services.

Tax Law, § 1115(a)(7)

(a) Exemption.

Tangible personal property sold or rented by a mortician, undertaker or funeral director (hereinafter referred to as funeral directors) in the performance of his professional services is not subject to the sales or compensating use tax.

(b) Purchases by funeral directors.