New York has issued a summary of changes to state taxes enacted as part of the fiscal year 2010-11 Budget Bill (L. 2010, A9710 (c. 57). Sales and use tax changes discussed include the temporary suspension of the state sales and use tax exemption for clothing and footwear priced under $110 per item and the narrowed definition of a sales tax vendor. The definition of a vendor for sales tax purposes now excludes certain activities of in-state affiliates performed on behalf of an out-of-state seller from the list of activities that would make that seller a vendor for sales tax purposes. Under the new law activities of an affiliate in providing accounting or legal services or advice to a seller, or in directing the activities of a seller, including but not limited to, making decisions about strategic planning, marketing, inventory, staffing, distribution, or cash management, do not make the seller a vendor for sales tax purposes.
For more information:
TSB-M-10(12)(S), August 19, 2010: www.tax.state.ny.us/pdf/memos/sales/m10_12s.pdf
Summary of Tax Provisions in SFY 2010-11: www.tax.state.ny.us/pdf/stats/sumprovisions/summary_of_2010_11_tax_provisions.pdf