Shaking things up in state and local tax
Shaking things up in state and local tax
By Chris Mehrmann and Madison Barnett
The New York State Department of Taxation and Finance issued an advisory opinion explaining that the petitioner’s Internet-based document transfer subscription plans are not subject to sales and use tax. Because the primary purpose of the transactions is to facilitate the transfer of files over the Internet, the Department…
By Nicole Boutros and Andrew Appleby
A federal court dismissed a class action lawsuit against Whole Foods, finding the consumers lacked standing because they could not demonstrate they purchased any of the mislabeled foods for which they claimed Whole Foods systemically overcharged. The consumers alleged that Whole Foods engaged in deceptive trade practices and had…
By Charles Capouet and Andrew Appleby
A New York State Division of Tax Appeals ALJ determined that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement lacked risk shifting and risk distribution. The taxpayer primarily owned and operated convenience stores and gas stations, and insured…
A New York State Division of Tax Appeals administrative law judge issued three determinations addressing the tax implications for unauthorized insurance companies, both life and non-life. Significant uncertainty has surrounded New York State’s taxation of unauthorized insurance companies since New York State amended its insurance tax provisions in 2003. The Department of Taxation and Finance …
Waiting until the federal return is prepared and then simply allowing that return to flow through to the New York returns could be a dangerous approach, leaving you scrambling, missing some election opportunities, and potentially being subjected to penalties.
Over the next few months, State Tax Notes’ In a New York Minute column will publish…
By Mike Penza and Madison Barnett
The New York Supreme Court, Albany County, held that New York’s unapportioned vehicle registration fees violated the Commerce Clause. The court found that the flat fees—imposed on all carriers operating motor vehicles in New York—were indistinguishable from those struck down by the U.S. Supreme Court in American Trucking Ass’ns.…
By Hanish Patel and Open Weaver Banks
A New York Division of Tax Appeals Administrative Law Judge (ALJ) held that an electricity producer’s purchases, installations and repairs of “step-up transformers” were not subject to sales and use tax because the transformers were “used directly” in the production of electricity. Step-up transformers are used to “step…
By Samantha Trencs and Open Weaver Banks
The Texas Comptroller of Public Accounts and the New York Courts have treated a former in-house attorney turned whistleblower very differently—Texas made a substantial payment to the individual, and New York kicked him to the proverbial curb.
The Texas Comptroller of Public Accounts paid $117,000 to David Danon…
In Part I of their series for State Tax Notes, Sutherland attorneys Leah Robinson and Evan M. Hamme provided a roadmap describing how to challenge a department of revenue’s assertion that online services are taxable as licenses of software. While focused on New York audits, the roadmap can assist in any similar audit.
In Part…
By Evan Hamme and Charlie Kearns
A New York State Division of Tax Appeals Administrative Law Judge (ALJ) determined that two-way radio communications services, or walkie-talkie services, are not telephone services subject to New York State’s telecommunications excise tax imposed under Tax Law § 186-e (186-e Tax). The petitioner uses specialized equipment or “repeaters” to…
