EchoStar Satellite Corp. v. State Tax Appeals Tribunal

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Petitioner, a national satellite television provider, purchased equipment used to deliver programming to its customers. Between March 2000 an February 2004, Petitioner did not pay sales or use taxes on its equipment purchases from manufacturers, and instead, collected sales taxes from its customers at the time the equipment was leased to them. Following an audit in 2005, the Department of Taxation and Finance issued a notice of determination assessing Petitioner an additional $1.8 million in use taxes in use taxes for the same period on the basis that Petitioner owed taxes at the time it purchased the equipment from manufacturers. The Tax Appeals Tribunal upheld the notice of determination. The Appellate Division confirmed the Tribunal's determination. The Court of Appeals reversed, holding that Petitioner's purchases of equipment used to deliver programming to its customers were exempt from sales and use taxes under New York's Tax Law. View "EchoStar Satellite Corp. v. State Tax Appeals Tribunal" on Justia Law