New York Enacts Budget with Expanded Definition of “Vendor”

As part of the 2009-10 enacted New York budget package, a new clause was added to the tax law that includes an affiliate nexus provision. This clause, effective June 1, 2009, expands the definition of a “vendor” to include seller’s of taxable tangible personal property and services if either 1) an affiliated in-state vendor uses the same trademarks, service marks, or trade names as the seller; or 2) an affiliated person engages in activities in New York that benefit the seller in its development or maintenance of a market for its goods or services in the state, provided those activities are sufficient to satisfy the nexus requirements of the U.S. Constitution. (Ch. 57 (A.B. 157), Laws 2009, effective June 1, 2009)

Posted on July 9, 2009