Ad Research Company Stuck With $2 Million NY Sales Tax Bill (1)

An advertising research company owes $2.3 million in sales and use tax for recommendations provided to clients, New York’s top state court held Thursday.

Dynamic Logic Inc.’s furnished reports fail to qualify for a state tax exemption covering consultancy services, the New York Court of Appeals said. The furnished reports include data that was mass distributed to the company’s clients, so the reports don’t qualify for the exemption under state law, the opinion said.

“This reincorporation of data represents an appreciable portion of each subsequent report, without which there would be no ability to compare a client’s campaign to any ...