Navigating New York Sales Tax Disputes: Importance of “Primary Function” Analysis

• Sales tax disputes in New York often involve transactions with both taxable and nontaxable components
• New York tax courts focus on the “primary purpose of the transaction” rather than individual components
• Recent cases like Dynamic Logic Inc. v. Tax Appeals Tribunal and Strata Skin Sciences Inc v. New York State Tax Appeals Tribunal illustrate the application of the “primary function” analysis
• Taxpayers in New York should consider the impact of the “primary function” analysis when engaging in various transactions

Source: weaver.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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