On January 20, 2026, New York Governor Kathy Hochul released her FY 2027 Executive Budget proposal. Unlike prior years’ proposals seeking sweeping tax reforms, the FY 2027 proposal contains more narrowly targeted changes to New York’s Tax Law. A focus of the proposal is the decoupling from certain Internal Revenue Code provisions enacted by
New York
Nothing to re-argue about: New York Tax Appeals Tribunal upholds subpoena decision
By Jeremy Gove on
Posted in New York, Sales and Use Tax
The New York Tax Appeals Tribunal affirmed its prior decision, upholding an Administrative Law Judge’s issuance of a subpoena requiring three Department employees to appear, and for the Department to produce documents for in-camera review, which included third-party tax information. The Tribunal rejected the Department’s request for re-argument because the Department presented no new issues…
NY Tax Talk: New ALJs, new rules, apportionment, bundling
By Elizabeth Cha & Periklis Fokaidis on
Posted in In the News, New York
The third quarter of 2025 saw notable activity in New York tax law, including new appointments, regulatory changes, and key decisions.
In this installment of NY Tax Talk, a quarterly column in Law360 focused on recent developments in New York tax law, Eversheds Sutherland attorneys Liz Cha and Periklis Fokaidis highlight the filling of ALJ…
Snowbirds beware: New York couple fails to establish new domicile in Florida
By Charlie Kearns & Sebastian Iagrossi on
Posted in Income Tax, New York
The taxpayers, originally residing in New York, were issued a tax assessment for unpaid income tax but they claimed they moved out of the state and settled in Florida in late 2018 (as part of their retirement plan) while still maintaining living quarters in New York. The taxpayer argued that they had changed their domicile…
New York City launches rulemaking for Business Corporation Tax
By Todd Betor, Elizabeth Cha, Ted Friedman & Madison Ball on
Posted in New York
On October 16, the New York City Department of Finance (DOF) published a Notice of Public Hearing and Opportunity to Comment on Proposed Rules. The proposed rule is the first of a set of rules following the 2015 tax reform relating to the Business Corporation Tax (BCT).
The DOF’s statement accompanying the proposed rule…
NY Tax Talk: ALJ Vacancy, Online Sales, Budget
By Elizabeth Cha & Daniel Hopper on
Posted in In the News, New York
There was a great deal of activity in New York in the second quarter of 2025, including several new cases and decisions concerning state and local taxes affecting taxpayers in New York State and New York City.
In this installment of NY Tax Talk, a quarterly column in Law360 focused on recent developments in New…
New York ALJ doesn’t give PaaS a pass in determining taxability
By Jeremy Gove on
Posted in New York, Sales and Use Tax
The New York Division of Tax Appeals determined that the taxpayer’s sale of a document management services was a taxable sale of software. While the taxpayer argued that its service was a nontaxable, cloud-based platform-as-a-service, the ALJ disagreed. Instead, the ALJ concluded that the taxpayer’s software was the “core element” of the platform, and customers…
Round two: New York upholds the convenience of the employer rule
By Chelsea Marmor on
Posted in Income Tax, New York
The Tax Appeals Tribunal upheld an ALJ’s determination that a taxpayer’s wages earned from working remotely in Connecticut were sourced to New York and subject to tax. For decades, New York has adopted the convenience of the employer test (Rule), which deems a nonresident who teleworks outside the state to be working at its employer’s…
Under construction: NY Court allows Site Safety services to bypass Tribunal
By Cyavash Ahmadi on
Posted in New York, Sales and Use Tax
The New York Appellate Division, Third Department recently held that a group of taxpayer-plaintiffs were not required to exhaust administrative remedies before commencing an action to declare their services were exempt from sales tax, even though they had not challenged their audit determinations before the New York State Tax Appeals Tribunal.
Ordinarily, taxpayers in New…
NY Tax Talk: Sourcing, retroactivity, information services
By Elizabeth Cha & Chelsea Marmor on
Posted in In the News, New York
The last four months were active in New York tax law. In addition to numerous legislative proposals, decisions were issued in multiple court cases.
In this installment of NY Tax Talk, a quarterly column in Law360 focused on recent developments in New York tax law, Eversheds Sutherland attorneys Liz Cha and Chelsea Marmor discuss select…