Hiring Firm Sells Taxable Software, Not Services, NY Court Rules

Jan. 15, 2026, 5:33 PM UTC

A company that helps clients find temporary workers failed to convince a New York appeals court that it sells tax-exempt professional services, with the justices concluding Thursday it actually sells taxable prewritten software.

Courts in New York and around the country have struggled to find the line between selling software and providing services through the use of software as more functionality moves to computer-based systems.

The New York Supreme Court, Appellate Division, Third Department, agreed with the state tax tribunal’s 2024 ruling that Beeline.com Inc.'s contracts with clients granted a license to use its software. “Based on the plain language ...

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