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Qualified New York Manufacturer Wins at New York Division of Tax Appeals: Use of Third-Party Subcontractor Did Not Affect Eligibility for State Franchise Tax Reduced Rate

June 17, 2024 By Maria Eberle, Lindsay LaCava, Mark Yopp and Rob Galloway 6 Mins Read

The New York Division of Tax Appeals recently ruled in favor of a taxpayer, E. & J. Gallo Winery, holding that it met the statutory requirements of a “Qualified New York Manufacturer” (“QNYM”) and was therefore entitled to a reduced corporation franchise tax rate. As a result of New York’s corporate tax reform, QNYMs are entitled to a reduced tax rate, including a 0% tax rate on their business income base beginning in 2014, for…

Plot Twist: New York Legislation Would Give the Commissioner of Taxation and Finance Appeal Rights Following Certain Adverse Tribunal Decisions

May 3, 2023 By Maria Eberle, Lindsay LaCava, Mark Yopp, Trevor Mauck, Michael Tedesco and Dmitrii Gabrielov 4 Mins Read

As part of the New York Budget Legislation (“S.B. 4009 / A.B. 3009”), the Commissioner of the New York State Department of Taxation and Finance (“Commissioner”) will be given the right to appeal certain types of decisions from the New York State Tax Appeals Tribunal (“Tribunal”). Currently, only taxpayers have the right to appeal Tribunal decisions. This provision is on the cusp of becoming law after clearing both legislative chambers on May 1, 2023. As…

Governor Hochul Vetoes Expanded False Claims Act Legislation

January 7, 2022 By fpetric 3 Mins Read

Governor Hochul rang in the new year by vetoing a bill that expanded the New York State False Claims Act (“FCA”) to permit claims against non-filers. Specifically, on December 31, 2021, Governor Hochul vetoed Senate Bill S4730 (Assembly Bill A2543), explaining in Veto Message No. 83 that “the language in the bill is broader than impacting only non-filers, and would implicate more tax filing controversies to the False Claims Act than just non-filers. This would…

“Primary Function” Test Limits the Scope of Information Services for New York Sales Tax Purposes

January 3, 2022 By Trevor Mauck 2 Mins Read

In Matter of LendingTree Inc., DTA No. 829714 (N.Y. Div. Tax App. ALJ Div. Dec. 9, 2021), a New York administrative law judge (“ALJ”) found that the matching of prospective borrowers with lenders was not a taxable information service. While certain components of the matching process may constitute taxable information services, the ALJ found that the “primary function” of the matching process was not a taxable information service. In New York, information services are…