As we reported last month, effective 09/01/2010 the New York State Department of Taxation and Finance issued a memorandum to supposedly clarify the types of information services it considers taxable. The Department has interpreted the law to mean that title companies and their vendors are required to collect sales tax on abstracts of title, tax searches and municipal searches.
However, the language used was very ambiguous and has caused many information companies to consult attorneys. For example the Department also mentioned ''investment reports and services," "Internet-based data services,'' and "survey results" as being taxable.
Thanks to the Government Affairs Committee at NPRRA, we are able to pass along several documents that may be useful for those interested in this situation.
An informative article written by Attorney Timothy P. Noonan is viewable to the public, click here.
The New York Law Journal published an article by Stephen Saler. "Title Companies Must Collect Sales Tax: How it Works, Are Attorneys Next?" may be viewed at the author's blog at http://blog.langdontitle.com