Ad Research Firm Is Liable for NY Sales Tax on Data Services

An advertising research company is liable for sales and use tax for information services it provided to clients, a New York state court found Thursday.

Dynamic Logic Inc. gauges the effectiveness of clients’ advertising efforts and gives recommendations based on the data it compiles. Information services are subject to tax under New York Tax Law Section 1105 (c) (1), the New York Supreme Court Appellate Division, Third Department said, affirming a lower tribunal’s ruling.

The company said that it wasn’t liable for SUT because it provided consulting services which are exempt, the opinion said. The court disagreed, saying that ...