New York Addresses the Taxation of Information Services


On July 19, 2010, the New York State Department of Taxation and Finance ("Department") issued TSB-M-10(7)S addressing the sales and compensating use tax imposed on information services. The Department has characterized the memorandum as an attempt to clarify the application of the primary function analysis used to determine whether a service is an information service. While the new guidance provided by the Department pays lip service to the primary function analysis, in reality it pre-supposes that the primary function of certain services is providing information, thus transforming the primary function test from a subjective to an objective analysis. The Department's position is in clear conflict with prior precedent on this issue.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Written by:


Reed Smith on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.