Week of 7/19/2010 thru 7/23/2010
Important Publications and Notices
Generally, a resident trust is required to file a New York State fiduciary income tax return if it meets the filing requirements for resident trusts. However, under the policy described in TSB-M-96(1)I, Resident Trusts, a resident trust that was not subject to tax because it met the conditions described in section 605(b)(3)(D) of the Tax Law was not required to file a return
Chapter 134 of the Laws of 2010 amended Article 20 of the Tax Law in relation to the definitions and tax rates for various tobacco products. Effective August 1, 2010:
- the tax rate on cigars and tobacco products (other than little cigars and snuff) increases from 46% to 75% of the wholesale price;
- little cigars will be taxed at the same tax rate as cigarettes; and
- the tax rate for snuff increases from $.96 to $2.00 per ounce and a proportionate rate any fractional part of an ounce over an ounce.
For the period September 1, 2010, through August 31, 2011, the amount of the prepaid sales tax on cigarettes is as follows:
- 61¢ on packages of 20 cigarettes
- 76¢ on packages of 25 cigarettes
This memorandum is intended to clarify the tax treatment of certain information services under sections 1105(c)(1) and 1105(c)(9) of the Tax Law. It is not intended to serve as an exhaustive explanation of sections 1105(c)(1) and 1105(c)(9). Its purpose is to provide general guidance regarding a wide array of services that are taxable under sections 1105(c)(1) or 1105(c)(9), unless eligible for some other exclusion or exemption in the Tax Law. In some cases, the determination of whether or not a service is a taxable information service requires a fact-intensive examination of the nature of the service being sold and what is being paid for by the purchaser.
Petitioner, name redacted. asks whether the transaction described below, involving the transfer of prewritten software, is subject to tax, and if so how the sale should be sourced. We conclude that the transaction is subject to tax and should be sourced based on where the software is used in New York.
The Petitioner, name and address redacted asks whether its receipts from the sales of its call tracking services provided to car dealerships located in New York are subject to New York State and local sales tax.
Up-to-date Forms Information
- Up-to-Date Information Affecting Your 2009 Tax Return
Visit our Income Tax and Corporation Tax Up-to-Date Information page for tax law changes or corrections that occurred after the forms and instructions were printed and which may affect your 2009 tax return.