E-Books Exempt from Sales Tax in New York

Over at Forbes they have uncovered some important tax guidance — a few weeks after it was published, sure, but who reads the tax advisories? The news: e-books are not subject to tax in New York State!

Here’s how the state reached its conclusion:

Petitioner’s e-books are not tangible and do not include any prewritten computer software. Accordingly, they do not constitute tangible personal property. As to whether the e-books constitute taxable information services, TSB-M-11(5)S provides that the Tax Department’s current position is that electronic publications that meet the memorandum’s definition of an e-book do not constitute information services.

Meanwhile, Amazon continues to do everything it can to avoid paying any sales taxes ever.