Multistate Tax Update — March 21, 2013

In advisory opinion TSB-A-13(4)C, the Department of Taxation and Finance (the “Department”) found that a Virginia corporation (“VirginiaCo.”) headquartered in Pennsylvania that did not have a physical sales location in New York but used 16 independent contractors located in New York was subject to the business corporation franchise tax in New York.  Before proceeding to discuss the main findings of the opinion, below is a brief overview of the business corporation franchise tax in New York.