In This Issue:

- Key Proposals in Governor Cuomo’s 2015-16 Executive Budget

- ALJ Holds That Online Reservation Receipts Are Not Sourced to New York

- ALJ Rules Taxpayer Is Not Required to Use NOLs in Years When It Calculates Bank Tax on a Non-Income Base

- Pricing Information Does Not Qualify as “Personal and Individual” Information for Sales Tax Purposes

- Insights in Brief

- Excerpt from Key Proposals in Governor Cuomo’s 2015-16 Executive Budget:

As we discussed in last month’s issue of New York Tax Insights, Governor Cuomo has released his proposed 2015-16 Executive Budget (Senate Bill No. S2009, Assembly Bill No. A3009), which includes several new and potentially far-reaching tax proposals, some of which are discussed below.

..Expands sales tax collection obligation to “marketplace providers.” In a proposal that is reminiscent in scope of the State’s controversial “Amazon tax” legislation in 2008, the Governor has proposed that, beginning March 1, 2016, a “marketplace provider” would be required to collect sales tax on behalf of a “marketplace seller” where the provider “facilitates” sales to New York customers. “Facilitation” is defined to include the collection of sales receipts from the customer, where the provider either (i) “provides the forum” for making sales (including an Internet website) on behalf of a seller or (ii) “arranges for the exchange of information or messages or information” between the seller and customer. This proposal raises potential nexus concerns, although the Memorandum in Support states that it would not expand the rules regarding sales tax nexus. It would also have the effect of shifting sales tax collection responsibilities from the marketplace seller who has in-State nexus to the marketplace provider.