'Verizon' Case Takes Narrow View on Sales Tax Exemption [telecom]

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Many people are familiar with the "resale exception" under which, for
example, a sale by a clothing manufacturer of shirts to a clothing
store is exempt from sales tax because the sales of the shirts by the
store are taxable, see N.Y. Tax Law Sections 1101(b)(4)(i), 1105(a).

By Joseph Lipari and Aaron S. Gaynor

Many people are familiar with the "resale exception" under which, for
example, a sale by a clothing manufacturer of shirts to a clothing
store is exempt from sales tax because the sales of the shirts by the
store are taxable, see N.Y. Tax Law Sections 1101(b)(4)(i),
1105(a). The sales tax contains corollary exemptions for property
purchased to produce goods and services for sale to consumers. Thus,
for example, the clothing manufacturer does not pay sales tax when it
purchases sewing machines used to produce the shirts, see N.Y. Tax Law
Section 1115(a)(12).

https://www.law.com/newyorklawjournal/2018/06/08/verizon-case-takes-narrow-view-on-sales-tax-exemption/?slreturn=20180508134636

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Bill Horne
(Remove QRM from my email address to write to me directly)

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