Since late 2008, the New York State Department of Taxation and Finance has routinely taken the position that charges for application service provider services, software as a service, or other online services may be subject to New York sales tax as licenses of software. Some sellers began collecting sales tax on this basis, and the
New York
Out of Steam: Nuclear Power Company Loses Bid for New York Manufacturing Tax Credits
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Posted in New York, Noteworthy Cases
By Chris Mehrmann and Open Weaver Banks
A New York appellate court denied a nuclear power company’s bid for manufacturing tax credits, finding that equipment used at two power plants to produce steam and water during the electricity generation process was not used for manufacturing. The taxpayer argued that the process of creating steam and…
Sutherland Adds Counsel Amy Nogid, Continues Expansion of Leading National State and Local Tax Practice in New York
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Posted in New York, Unclaimed Property
We are pleased to announce that Amy F. Nogid has joined Sutherland’s State and Local Tax (SALT) practice as counsel in New York. Prior to joining Sutherland, Amy was of counsel at Morrison & Foerster LLP.
Amy represents clients in all aspects of state and local taxation matters at the administrative, trial and appellate levels…
Found in Translation: Online Drop Shipment Facilitation Service Not Subject to New York Sales and Use Tax
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By Evan M. Hamme and Open Weaver Banks
The New York State Department of Taxation and Finance released an advisory opinion explaining how it will treat drop shipment facilitation services for sales and use tax purposes. The petitioner uses proprietary software to create an Internet-based “hub” through which a web-based merchant orders products from a…
The Sun Shines on Taxpayers: New York State Tax Appeals Tribunal Grants Appeal in Combined Reporting Case
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Posted in New York, Policy and Legislation
By Nicole Boutros and Andrew Appleby
In yet another taxpayer victory, the recently reconstituted New York State Tax Appeals Tribunal determined that the New York State Department of Taxation and Finance improperly denied the taxpayers’ amended returns, which were filed on a combined basis for the 2005 and 2006 tax years (i.e., prior to the…
In a New York Minute: A Complete Guide to New York’s New Manufacturer Incentives plus an addendum regarding New York City’s Manufacturer Rules
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Posted in New York, Policy and Legislation
Perhaps no aspect of New York’s expansive 2014 tax reform has generated as much excitement as the incentives for qualified New York manufacturers. The new law spells out the requirements for qualification and has been supplemented by some additional guidance, including legislation passed a few weeks ago.
In their article for State Tax Notes, Sutherland
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New York City Legislation Enacts General Corporation Tax Reform
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Posted in New York, Policy and Legislation
On April 13, 2015, Governor Andrew Cuomo signed New York’s 2015-2016 budget legislation, which, among other changes, conforms the New York City general corporation tax to the most significant changes from last year’s New York State corporation franchise tax reform.
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The Jersey Short: If at First You Don’t Succeed in New Jersey, Try Being Unreasonable
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Posted in New York, Policy and Legislation
New Jersey’s related-member addback provision has five statutory exceptions, but only one is really worthy of comment.
In their article for State Tax Notes, Sutherland attorneys Leah Robinson and Open Weaver Banks examine the exceptions to New Jersey’s related-member addback provision, focusing on the only exception successfully relied on in the state’s tax court—the…
A Real Loss for New York: ALJ Rejects Hypothetical Application of Net Operating Loss
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Posted in New York, Policy and Legislation
By Nicole Boutros and Open Weaver Banks
A New York State Division of Tax Appeals Administrative Law Judge (ALJ) held that for banking franchise tax purposes a taxpayer did not have to utilize a net operating loss (NOL) carryover in a year in which the taxpayer did not pay tax on its entire net income…
In a New York Minute: Six New York Tax Reform Decisions to Make in 2015
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Posted in New York, Policy and Legislation
New York’s corporate tax reform includes sweeping changes affecting nearly every aspect of its corporation franchise tax.
In their article for State Tax Notes, Sutherland Partners Leah Robinson and Marc A. Simonetti review what New York corporate taxpayers should be doing now to be ready for the state’s corporate tax reform measures that will…