Loyal Readers: There are no cases on which to report this week, but it looks like I missed an ALJ Determination decided November 17 when I prepared last week’s report. It is summarized below.
My Thanksgiving dinner is mostly-digested and the snow on my lawn has mostly-melted. It is back to my regularly-scheduled programming, and this week my visit to the Division of Tax Appeals' website disclosed that the Tribunal posted two decisions and the ALJs issued three orders.
TiNY is back with commentary and analysis on another group of DTA cases.
TiNY is back after a brief public sabbatical! In this blog, we're taking a look at three weeks worth of recent cases.
In a decision with significant implications for the sales taxation of artwork, the New York Tax Appeals Tribunal ruled on February 28 that a $7 million painting (at least a one-half share in the painting) was validly acquired for resale resulting in a six-figure sales tax refund for a co-owner of the painting. Tribunal decisions on sales tax are significant in their own right, since they are somewhat rare and (as opposed to administrative law judge rulings) they become binding precedent. But the Objet LLC ruling should have particular relevance to the art industry since it tackles two issues that factor prominently in the high-stakes sales and related tax structuring that occur in the industry: one being the form-over-substance nature of sales tax, and the other being the proper analysis for determining when property is purchased “exclusively for resale”.
https://www.hodgsonruss.com/services/practices/state-local-taxIn 2015, the New York Tax Law was amended to provide exemptions from sales and use tax for certain sales of electricity generated by residential or commercial solar energy systems and sold under a written solar power purchase agreement (“PPA”) (See N.Y. Tax Law §§ 1115(ee)(2), 1115(ii)(2); see also TSB-M-15(5)S). These exemptions were in addition to the already existing sales tax exemptions for the sale and installation of residential and commercial solar energy systems equipment (See Tax Law §§ 1115(ee)(1), 1115(ii)(1); see also TSB-M-05(11)S and TSB-M-12(14)S).
After several years of failed bills, Florida has finally joined the other 43 states that have passed economic nexus threshold for sales and use tax purposes in the wake of the U.S. Supreme Court’s decision in South Dakota v. Wayfair Inc. On April 19, 2021, Governor Ron DeSantis signed S.B.50 that enacted legislation imposing a sales tax collection requirement on both remote sellers and marketplace providers.
Here are the sales tax cases from the TiNY blog for the week of March 25, 2021.