Assembly Bill 6008, introduced on March 30, 2023, would impose a $3 delivery surcharge on any item purchased online and delivered within New York City. The person selling the item to be delivered within New York City is liable for the surcharge and the surcharge “shall be passed along to the purchaser and separately
New York
Legal Alert – Tax ins and outs of the New York State budget: Legislative amendments made to Governor Hochul’s Fiscal Year 2024 Executive Budget
Posted in Legal Alert, New York
On March 15, 2023, the two houses of the New York State Legislature released their respective amendments (Senate Bills S.4008 and S.4009, Assembly Bills A.3008 and A.3009, collectively the Amendments) to New York Governor Kathy Hochul’s Fiscal Year 2024 Executive Budget (the Budget Bill) (see our prior legal alert). While the Amendments…
The New York Division of Tax Appeals finds vendor management fees are taxable sales of pre-written software
By Jonathan Feldman & David Jasphy on
Posted in New York
An administrative law judge at the New York Division of Tax Appeals found that a company’s vendor management fees were taxable as the sale of pre-written software. The company offers a web-based application that helps to manage and procure staffing services from requisition through billing. The company argued that its fees are not taxable because…
Tax Appeals Tribunal grants New York manufacturer 100% credit carryover refund
By Jonathan Feldman & Jeremy Gove on
Posted in Income Tax, New York
The New York Tax Appeals Tribunal ruled that a semiconductor manufacturer was eligible to use the carryover refund from both the Empire Zone investment tax credit (EZ-ITC) for new businesses and the qualified investment project (QUIP)/significant investment project (SCIP) tax credit in the same year, resulting in a $152.3 million refund for the 2014 tax…
Legal Alert: New York Governor releases Fiscal Year 2024 Executive Budget
Posted in Legal Alert, New York
On February 1, 2023, New York Governor Kathy Hochul released her Fiscal Year 2024 Executive Budget and accompanying legislation (the Budget Bill). The Budget Bill includes several tax rate adjustments and technical fixes to the Tax Law, among other provisions.
Read the full legal alert here.
Digital advertising and data tax proposals introduced in Connecticut and New York
By Charlie Kearns & Samantha Trencs on
A number of Connecticut digital advertising bills and a New York data tax bill have been introduced to jumpstart the 2023 legislative sessions. Both states have considered – but ultimately rejected – legislation that would adopt targeted taxes on the digital economy in recent years.
On January 18, 2023, proposed legislation was filed in the…
A failed experiment: New York’s False Claims Act tax meltdown
By Jeffrey Friedman & Cyavash Ahmadi on
Posted in In the News, New York
In this installment of A Pinch of SALT for Tax Notes State, Eversheds Sutherland attorneys Jeff Friedman and Cyavash Ahmadi examine Egon Zehnder, a case they argue demonstrates why New York’s False Claims Act should never have been expanded to tax cases. The case reflects fundamental problems that go to the heart of…
Keep it close and approximate: New rules for market sourcing
By Eric Tresh & Elizabeth Cha on
Approximately 34 states require market sourcing to source sales of other than tangible personal property. Many states adopted market-sourcing rules in recent years and are only now beginning to finalize regulations regarding their implementation. A number of states have also adopted market-sourcing regulations attempting to provide additional clarity through more detailed rules.
In this installment…
New York State Division of Tax Appeals rules company’s services are nontaxable information services
By Elizabeth Cha, Catalina Baron & Jeremy Gove on
Posted in Digital Economy, New York
On September 29, 2022, the New York State Division of Tax Appeals determined that services involving the creation of customer engagement reports based on email tracking and email template usage data are nontaxable information services—particularly when use of software is only incidental to the performance of such services. The taxpayer sold “customer engagement services” to…
A breakdown of the New York tax regime
By Chelsea Marmor & Jeremy Gove on
In this episode of the SALT Shaker Podcast, Eversheds Sutherland Associate Jeremy Gove welcomes back Associate Chelsea Marmor to begin a new (optimistic) series highlighting all 50 states (and DC) by breaking down each tax system and its nuances.
To kick off his series, Chelsea joins him for a breakdown of the tax regime of…