Shaking things up in state and local tax
Shaking things up in state and local tax
New York State’s long-awaited budget was signed into law by Governor Kathy Hochul on May 28, 2026.
The enacted budget retains most, but not all, of the tax reforms from the Governor’s January budget proposal discussed in our prior post.
Notably, New York State and New York City have decoupled from certain Internal Revenue…
The New York Appellate Division unanimously affirmed a lower court order holding that New York’s regulation 20 NYCRR 1-2.10 – which addresses the application of P.L. 86-272 to Internet-based business activities – is not preempted by the federal statute. The American Catalog Mailers Association, a trade group representing merchants who sell goods through catalogs, telephone…
Bundled and mixed transactions continue to play an ever‑increasing role in New York sales tax determinations, particularly where nontaxable services are sold with software or other taxable property for one nonitemized price.
In this installment of “A Pinch of SALT,” published by Tax Notes State, Eversheds Sutherland attorneys Jeremy Gove and Periklis Fokaidis examine…
Questions around federal conformity and the scope of administrative agency deference continue to shape New York City tax disputes.
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, Diane Beleckas, and Madison Ball analyze a recent determination of…
The New York Supreme Court, Appellate Division, affirmed a decision of the Tax Appeals Tribunal, which determined that a company’s charges for a proprietary technological platform, referred to as a “vendor management system” (VMS), constituted licenses to use prewritten computer software that were subject to sales tax. The company matched clients with suppliers of contingent…
The taxpayer, a fleet management company that leases fleets of commercial vehicles to businesses, used leases containing a terminal rental adjustment clause (TRAC). Under these leases, the lessee paid estimated monthly rent based on the projected residual book value of the vehicle at lease termination. When the lease ended, the estimated rent was retrospectively adjusted…
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…
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…
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…
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…
