- The New York Supreme Court Appellate Division affirmed that a data collection and analysis service is subject to sales and use tax as an information service.
- The taxpayer provided online advertising effectiveness measurement services, collecting and analyzing data to generate reports and populate a benchmarking database.
- The court determined that the primary function of the service was data collection and analysis, and the information was substantially incorporated in reports furnished to other persons, making it subject to sales and use tax. Companies collecting and analyzing data should be aware of potential tax implications and monitor any proposed excise tax legislation.
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