Determination No. 829434, N.Y. Div. of Tax App., ALJ Division (11/10/21). An administrative law judge with the New York Division of Tax Appeals held in a taxpayer’s favor that when viewing its healthcare navigation service offering in its entirety, the primary function is to provide nontaxable services associated with the administrative part of its members’ medical needs and thus its charged membership fees were not subject to state sales tax – reasoning that just because its customers may utilize the offerings through its software by accessing them through its web portal or mobile application does not make the services taxable. In doing so, the judge explained that the standard for determining the taxability of integrated services with multiple components is to determine the primary function of the service – clarifying that “something can be integral to a service without being the primary function.” The New York Division of Taxation unsuccessfully claimed that the taxpayer is selling taxable prewritten software for use of its mobile application and web portal, and that such use of the prewritten software is the primary function of its service offering.
Source Deloitte
Latest Posts in "United States"
- Washington State to Tax Advertising and Retail Services Starting October 2025
- Vernon, Alabama Raises Local Sales and Use Tax Rates Effective October 2025
- Florida Eliminates Sales Tax on Commercial Real Estate Leases Effective October 2025
- Are Meal Subscription Boxes Subject to Sales Tax? Understanding Taxability by State
- Most New Jersey Voters Strongly Oppose Expanding or Raising State Sales Tax, Poll Finds
