New York—Sales and Use Tax: Motion to Reargue Denied
Taxpayers’ petition for revision of determinations or refund of New York State sales and use taxes was denied. The taxpayers did not set forth a reason that would require the Division of Tax Appeals to reconsider its prior determination. Instead, the taxpayers claimed that the administrative law judge failed to address their argument based on a New York State judgment and overlooked or misapplied a principle of law.
The Division of Tax Appeal denied the taxpayers’ petition as they misread the case. However, the administrative law judge did not overlook a principle of law. In the case relied upon by the taxpayers, the court did not set forth a directive to the division. The case involved a seller of scrip who sought a declaratory judgment that it could not be held liable for sales tax obligations incurred by the adult entertainment clubs where it sold scrip.
The taxpayers failed to set forth a prime reason that required the Division of Tax Appeals to exercise its limited authority to reconsider its prior determination. Hence, the taxpayers’ motion to reargue was denied.
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