New York precluded from retroactively excluding licensed programming from the property factor


A broadcasting taxpayer sought to include the cost paid for its program licenses in its New York State corporation franchise tax property factor when it received such programming from videotape and from satellite transmissions. The State's longstanding position treating videotapes as tangible personal property was applicable to the taxpayer's satellite transmissions because there was no relevant difference in the taxpayer's business activity based on the method of delivery. The State's subsequent policy change could not be applied retroactively to the taxpayer's years at issue. Accordingly, the taxpayer was permitted to include the cost paid for all of its program licenses in its property factor. [Meredith Corporation v. Tax Appeals Tribunal, New York Supreme Court, Appellate Division, Third Judicial Department, No. 512597 (11/21/2012)]

Return to Tax research and insights
State and Local Tax