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In a recent Advisory Opinion, the New York Commissioner of Taxation and Finance determined that unheated food sold by a corporation that provides food products to sports facilities and other large-scale entertainment venues to an unrelated Concessioner are taxable because entities related to the producer and are part of the same Restaurant Group provide catering and food management services related to the food on behalf of the producer. New York Tax Law imposes sales tax on sales of food or drink where the vendor serves or assists in serving, cooks, heats, or provides other services with relation to the food or drink. Although the food producer did not itself provide services in the Stadium beyond delivery, its related entity’s employees did provide such services and, therefore, the charges for the prepared food provided to the Concessioner are taxable. (TSB-A-10(12)S, New York Commissioner of Taxation and Finance, April 5, 2010)

(05/28/2010)

A taxpayer’s position as a Director and Vice-President of a bankrupt telecommunications company did not make her accountable for the company’s outstanding sales tax liability because she was found to not be a person under a duty to collect and remit unpaid taxes. Despite her position as an officer, she did not have sufficient control or authority over the company’s operations to necessitate this responsibility. This was demonstrated by the taxpayer’s lack of management responsibilities, attendance at board meetings, and inability to sign checks or tax returns on behalf of the company. (Mitchell, New York Division of Tax Appeals, Administrative Law Judge Unit, DTA No. 822072, February 25, 2010)

(04/07/2010)

The New York Department of Taxation and Finance has begun posting the State’s top 250 business and top 250 individual tax debtors. This effort is intended to recover delinquent corporate franchise, personal income, sales and use, and withholding tax liabilities. The lists will be updated monthly (Release, Office of New York Gov. David Paterson, March 5, 2010).

(03/17/2010)

Fees charged by a company to its customers for playing computer video games and using its computer equipment at its facility are subject to New York sales tax. The taxpayer’s computer games are considered prewritten software, thus making the fees taxable for the use of tangible personal property. Rentals of computer hardware are also taxable under New York tax law. (TSB-A-10(2)S, New York Commissioner of Taxation and Finance, January 20, 2010).

(03/01/2010)

The New York Supreme Court, Appellate Division, determined that a catering business should have paid sales tax on its rental of audiovisual equipment. Since the petitioner did not rent the equipment to anyone other than its catering customers, the rerental of the equipment is purely incidental to the primary purpose of the business and not a rerental that would qualify for the resale exemption. (21 Club, Inc. v. Tax Appeals Tribunal, New York Supreme Court, Appellate Division, Third Judicial Department, No. 505992, January 7, 2010)

(01/28/2010)

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