An administrative law judge in the New York State Division of Tax Appeals rejected the state’s position that a taxpayer providing a web-based service which allowed clients to identify effective and ineffective messaging through information, analysis and reports was selling taxable software. Following the rationale applied in a series of recent sales tax cases, including Matter of 1Life Healthcare, Inc., DTA No. 829434 and Matter of Breakdown Services, Ltd., DTA No. 829396, the judge concluded in her September 29, 2022, determination that the taxpayer’s service was nontaxable because its primary function was an information service that was personal or individual in nature.
