blog updates

Follow KSM
Search

KSM blog

KSM Blog | Katz, Sapper & Miller CPA

New York State & Local Tax Update: July 2016

Posted 4:00 AM by

New York State and Local Tax Update

New York Announces Business Incentives Webpage

The New York State Department of Taxation and Finance has issued a press release announcing the launch of its Business Incentives webpage. The Department describes the webpage as “a one-stop shop where new and existing business owners can learn about valuable tax credits that may be available to them.”

New York Issues Advisory Opinion on Data Storage Services

The New York State Department of Taxation and Finance has issued an advisory opinion concluding that the taxpayer's data storage services are not subject to sales or use tax. The taxpayer “provides a web-based data-hosting service that uses cloud-based technology and storage enabling subscriber users to: (i) securely store and back-up data files; (ii) share data files with others (including non-subscribers) across the Internet; and (iii) synchronize files across multiple user devices.”

The Department determined that the services are not taxable because they are not receipts for the sale of software, nor are the services information services. The Department also determined that the taxpayer is not storing tangible personal property and that data storage service is not an enumerated service subject to sales tax. For more information, see TSB-A-16(19)S.

New York Issues Advisory Opinion on Advertising Information

The New York State Department of Taxation and Finance has issued an advisory opinion concluding that the taxpayer's service of providing advertisers with information about Internet users is a taxable information service. The taxpayer “makes groups of individual Internet users available to its advertiser customers, who then serve an advertisement (ad) to each individual user in that group.”

The taxpayer then “collects and analyzes data on approximately 700 million individual users across the Internet.” The taxpayer “does not provide reports on the information it collects but uses this information to organize a mechanism (technology that includes HTML tags, Internet cookies and filters to group or segment those cookies) for advertisers to target individual users for relevant ads.”

The Department determined that the taxpayer provides taxable information services because it is providing information to Internet advertisers about end users. The exclusion from tax does not apply in this instance because the information provided is not “uniquely personal” as most of the information is obtained through the taxpayer's relationship with a data provider who can sell the information to others, and some of the information comes from other information providers. For more information, see TSB-A-16(18)S.

New York Issues Advisory Opinion on the Taxability of Tablet-based Health Monitoring Product 

The New York State Department of Taxation and Finance concluded that the taxpayer's fee for its tablet-based health monitoring product and sale of scales and tablets are subject to sales tax; the taxpayer's sale of blood pressure cuffs and transmitters for glucometers are not subject to sales tax. The taxpayer's product allows caregivers access to its web portal, where they remotely use the taxpayer's software to create care plans for the users. Giving the caregivers access to and the right to use prewritten software constitutes the transfer of prewritten software, which is subject to tax. The blood pressure cuffs and transmitters for glucometers sold by the taxpayer qualify as tax exempt medical equipment.

However, because scales and tablets are generally useful for purposes other than treatment of illness, injury or physical incapacity, they do not qualify for the exemption for medical equipment and supplies, and the sale of these items is subject to tax.  For more information, see TSB-A_16(8)S.

About the Author
Donna Niesen is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Donna helps keep clients up-to-date on the multitude of tax rules and requirements in all 50 states. She guides them in the right direction as they address the complex issues that emerge on both the state and local levels. Connect with her on LinkedIn.

link
Comments (0)
Post a Comment
Name:
Email: (Not Displayed)
Website: (optional)
Comment (HTML tags will be stripped):
Please type the alpha-numeric code above (case sensitive):
Error