SALT Report 2567 – The New York Department of Taxation and Finance issued a notice regarding the cap amount for the sales and use tax exemption for electronic news services. Under New York law these services are exempt if they are sold at or below the cap amount.
For purposes of the exemption, the cap amount is defined as 300% of the average daily newsstand price of the three newspapers with the largest total paid national daily circulation. The Department determines the cap amount annually by April 1 of each year. The established cap amount will then apply for the subsequent twelve-month period beginning on June 1 and ending on May 31.
Therefore, the cap amount for sales or uses of electronic news services that occur between June 1, 2013 and May 31, 2014, is set at $2,190.
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