Tax Law Updates | New Statutes, Regulations, and Rulings
January 7, 2010
NY Dep’t of Taxation Issues Opinion on Allocation of Intellectual Property Royalty Income to State
Petition No. C071227A
TSB-A-09(14)C, 8/5/2009
The New York State Department of Taxation and Finance (“Department”) has released an advisory opinion on August 5, 2009, stating that that royalty receipts earned from the licensing of a corporation’s intellectual property are allocated to the state based on where the activity that generates the licensee’s fee occurs.
By way of background, a petition dated December 21, 2007 requested an advisory opinion regarding how royalty receipts earned from the licensing of the Petitioner’s intellectual property should be allocated to New York for purposes of determining the receipts factor of the business allocation percentage (“BAP”). According to the Department, the fee…
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View a PDF of the ruling