In re Wegmans Food Markets, Inc. v. Tax Appeals Tribunal of State of New York

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In this N.Y. C.P.L.R. 78 proceeding, the Court of Appeals held that Tax Appeals Tribunal of the State of New York (the Tribunal) rationally determined that the information services receipts at issue in this case were not excluded from the sales tax imposed by N.Y. Tax Law 1105(c)(1).Tax law 1105(c)(1) imposes sales tax on certain information services but excludes the furnishing of information that is personal or individual in nature. The New York State Department of Taxation and Finance (the Department) conducted an audit of the sales and use tax liability of Wegmans Food Markets, Inc., a regional supermarket chain, and determined that Wegmans's purchases of competitive price audits (CPAs) of its competitors and corresponding reports from RetailData, LLC were taxable receipts under Tax Law 1105(c)(1). Accordingly, the Department imposed additional sales tax. Wegmans petitioned the Division of Tax Appeals, arguing that RetailData's services qualified as an exempt information service that was personal and individual in nature. An ALJ denied the petition. The Tribunal affirmed. The Appellate Division annulled the Tribunal's determination, concluding that the tax exclusion applied. The Court of Appeals reversed, holding that the information RetailData furnished to Wegmans was not personal or individual in nature. View "In re Wegmans Food Markets, Inc. v. Tax Appeals Tribunal of State of New York" on Justia Law