NY tax on information services

[David Farber <farber@central.cis.upenn.edu>]

Russell Nelson writes:
 
>> September 1, 1993  New York Newsday
>> By Joshua Quittner
>>
>>   Starting today, metropolitan New York residents will pay a hefty
>> 13.25% sales tax on information services they get over phones and
>> computers - the highest tax on information services in the country,
>> experts say.
>
> IMHO, this is not true (but it sure makes good press).  
> Reading over the text of the law, it appears to be 
> targetting the 900/800 oral information providers.  It 
> specifically excludes anything customized for the particular 
> user, and it specifically excludes written materials.   
 
Yes, but apparently the New York authorities disagree with you.  
See _Newsday_, 9/6:
 
"    The  Budget  Division  and the Department of Taxation and 
Finance agree that  the  5-percent surcharge also applies to such 
wildly popular computer services  as  CompuServe,  Prodigy  and 
America on Line. So, in addition to taxing  the  poor  souls who 
use those sex-phone services, the new law goes after  a  more  
sophisticated  and  altogether  more resourceful crowd, the 
computer literate."
 
Steve Haynes
 
* Stephen L. Haynes            Internet:  shaynes@research.westlaw.com
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