- New York’s updated franchise tax regulations treat some online activities, like post-sale support and certain cookie usage, as beyond protected “mere solicitation” under P.L. 86-272.
- A trade group challenged the rules, arguing federal preemption and improper retroactive application dating back to 2015.
- The trial court and New York Appellate Division both upheld the regulation against the preemption challenge, saying the issue depends on a taxpayer’s specific facts.
- The court did not decide the retroactivity issue or whether the rules conflict with the federal Internet Tax Freedom Act.
Source: gtlaw.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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