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Florida Department of Revenue Concludes That Online Learning Service Is Subject to Communications Services Tax

By , and 3 Mins Read

The Florida Department of Revenue issued a Technical Assistance Advisement concluding that a taxpayer’s online learning services were subject to the state’s Communications Services Tax (“CST”) as a “video service” (statutorily defined as “the transmission of video, audio, or other programming service to a purchaser …” and includes “digital video”), while the taxpayer’s sales of an internal email service were nontaxable “information services.”  Florida Dep’t of Revenue, Technical Assistance Advisement 22A19-002R (Oct. 7, 2022).  The…

“Primary Function” Test Limits the Scope of Information Services for New York Sales Tax Purposes

By 2 Mins Read

In Matter of LendingTree Inc., DTA No. 829714 (N.Y. Div. Tax App. ALJ Div. Dec. 9, 2021), a New York administrative law judge (“ALJ”) found that the matching of prospective borrowers with lenders was not a taxable information service. While certain components of the matching process may constitute taxable information services, the ALJ found that the “primary function” of the matching process was not a taxable information service. In New York, information services are…

New York Administrative Law Judge Determines That Online Security Services Are Subject to Sales Tax

By , and 4 Mins Read

A recently published New York State Division of Tax Appeals Administrative Law Judge (“ALJ”) determination, Matter of SecureWorks, Inc., DTA Nos. 828328 & 828329 (N.Y. Div. Tax App. ALJ Div. Jan. 14, 2021) (“SecureWorks”) concluded that New York sales tax applies to certain online security services when such services are provided with respect to devices located in New York. The ALJ concluded that most of the IT security services provided by the taxpayer, SecureWorks, Inc.,…