New York Judge Hints Ad Firm Liable for $2.3 Million Sales Tax

A New York high court judge on Tuesday suggested that an advertising research company is liable for $2.3 million in sales and use tax for services it provided to clients.

A lower appeals court held that because Dynamic Logic Inc. furnished reports to clients based on a database that was accessible to its clients, the company provided informational services which are taxable under state law.

Dynamic Logic asked the New York Court of Appeals during oral arguments to disregard the data and instead focus on the individualized reports it gives to each client, which constitute consultancy services that are tax ...