The New York State Department of Taxation and Finance released an advisory opinion finding the Petitioner’s fee paid for IT support services was not subject to sales and use tax because the only taxable component of the services was delivered to the Petitioner outside of New York. The Petitioner hired a New York-based company to
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New York is Number One with New Personal Income Tax Rates
“New Yorkers love to believe that we’re number one in everything. We’re certainly number one in something now, and that’s personal income tax rates.”
Ken Pokalsky, Vice President of The Business Council of New York State, and Michael Hilkin, Counsel in the New York office of Eversheds Sutherland, join Partner Nikki Dobay on…
New York Department of Taxation finds that IT support service was not subject to sales tax
The New York State Department of Taxation and Finance issued an advisory opinion determining that the fee paid for an information technology support service was not subject to sales and use tax because the taxable component of the service was delivered outside of New York. The taxpayer provided investment advice to its customers and as…
New York Tax Department determines taxability of online request for proposal services
The New York State Department of Taxation and Finance issued an advisory opinion, determining the taxability of two online services sold by a taxpayer relating to government requests for proposal: (1) the procurement service was nontaxable; but (2) the notification service was a taxable information service. The procurement service allowed government customers to create…
Legal Alert: New York Legislature finalizes FY 2022 budget
On April 6 & 7, 2021, the New York Assembly and Senate passed Fiscal Year 2022 budget legislation addressing revenues and taxation (the Budget Bill). The Budget Bill is part of a broader deal between Governor Cuomo and both chambers of the Legislature. The Budget Bill is expected to raise $3.5 billion in new…
New York Tax Department concludes online webhosting product not subject to sales tax
The New York State Department of Taxation and Finance issued an advisory opinion, concluding that a taxpayer’s charges for its online webhosting solution were not subject to sales tax. The customers pay an annual fee for their events (audio and video meetings, conferences, webinars and live presentations) to be hosted and maintained and also…
New York finds that exclusion of out of state corporation from transfer tax exemption was not unconstitutional
The New York Supreme Court, Appellate Division, ruled that a tax exemption that applied to New York special non-profit local development corporations only did not violate the equal protection clause or commerce clause of the US Constitution. New York imposes a mortgage recording tax on each mortgage of real property situated in New York and…
Apples and Oranges: New York Applies the Pension Source Law to Pre- and Post-Termination Nonqualified Plan Distributions
The New York State Department of Taxation and Finance issued an advisory opinion explaining that a taxpayer’s payments from nonqualified deferred compensation plans to nonresident former employees, after termination of employment of the nonresidents, constitute retirement income and are therefore not subject to New York personal income tax, income tax withholding, or reporting. The Department’s…
For Your Eyes Only: New York Advises that Database Service is not Subject to Sales Tax
The New York Commissioner of Taxation and Finance issued an Advisory Opinion explaining that a petitioner’s service that allows customers to access its database and run reports of the customers’ data is not subject to sales tax. The petitioner enters into agreements with customers to maintain their fleet of vehicles, and the petitioner compiles data…
Expensive Vacation: New York Tax Appeals Tribunal Rules Vacation Home is “Permanent Place of Abode” for Residency Purposes
The New York Tax Appeals Tribunal recently held that a vacation home constitutes a “permanent place of abode” to make taxpayers statutory residents for New York income tax purposes.
The taxpayers, a married couple, were domiciled in New Jersey. The husband was a hedge fund manager who primarily worked out of his New York City…