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NY Tax Law May Have Far-Reaching Effects

By Kevin Adler
August 25, 2009

Franchisors and franchisees will be heading into uncharted territory in New York state when a new law takes effect in December 2009. The new law is incorporated into the state's sale tax statutes (Subpart G of Part V-1 of Chapter 57 of the New York State Laws of 2009), and it requires that every franchisor must provide the Department of Taxation and Finance (“Department”) with contact information and extensive sales and tax data about each franchisee that is operating in the state.

Originally, the legislation was slated to come into effect on Sept. 20, 2009, but the Department delayed the first reporting deadline to Dec. 20, after receiving critiques from the International Franchise Association (“IFA”) and individual franchisors and franchise attorneys.

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