New York: New Cap Amount for Electronic News Services Exemption
- May 16, 2014 | Gail Cole
The State of New York provides an exemption from sales and use tax for certain electronic news services. The exemption is allowed for businesses selling the service “at or below the cap amount.” Cap amount is defined as “300% of the annualized average daily newsstand price of the three newspapers with the largest total paid national daily circulation.”
Each year, the cap amount is altered. The new amount is announced by April 1 by the New York State Department of Taxation and Finance and takes effect for the 12 month period beginning the following June 1.
Between June 1, 2014 and May 31, 2015, the cap amount will be $2,555. Will the exemption still apply to your business?
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