Hiring Software Is Subject to New York Sales Tax, Tribunal Rules

New York properly imposed nearly $1 million in sales tax on Beeline.com Inc.'s software that helps customers manage contingent workers, the New York Tax Appeals Tribunal ruled.

“Although petitioner describes its vendor management system in terms of a service, the Beeline VMS software falls within the definition of pre-written software and, therefore, is tangible personal property under the Tax Law,” the tribunal ruled in an opinion released Thursday.

There is no evidence that Beeline customized the software for each client, and when it did it charged an additional fee, the three-judge panel said.

Florida-based Beeline contested New York’s assessment of ...