NY Sales Tax Ruling Threatens Advertising Consulting Industry

New York’s high court dealt a blow to the advertising information services industry last week when it narrowed an exemption to the state’s sales and use tax in a case involving an ad research firm, attorneys and scholars say.

The limiting of the exemption has huge repercussions, particularly for the industry’s advertising firm clients, said Jordan Goodman of Kilpatrick Townsend & Stockton LLP.

Although those clients can still receive tax-exempt advertising consulting services that assess how many potential customers are viewing and clicking their ads, they can’t compare their analytics to those of competitors without the sales and use tax ...