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 provide it with managed IT services.  The Department examined the different components of these services to determine the taxability of each.  It determined that the hardware and software support services, as well as the data back-up services provided, were non-taxable.  However, the Department found the management of security of Petitioner’s IT assets and data were a taxable protective service.  But, because the computer assets and data being protected were outside the state, they were not subject to New York sales and use tax in this instance.  Finally, the Department noted that although taxability of an “integrated service,” like the managed IT services provided here, is usually determined based on the service’s primary function, such determination was unnecessary here because the only taxable component of the services was delivered to Petitioner outside the state.