The primary function test strikes again: Lessons from Beeline

In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor break down a recent New York Appellate Division decision addressing a longstanding question in New York: Is providing a license to software always the sale of software?  Jeremy and Chelsea unpack the Appellate Division's answer to that question in Beeline, who offered its customers a license to taxable prewritten software and nontaxable professional services. Applying New York's primary function test, and relying on the extensive record developed below, the court concluded that the transaction's objective was the taxable sale of software rather than nontaxable professional services. This week's overrated/underrated question takes on a fun one: birthdays. Are they overrated or underrated? For questions or comments, email [email protected]. Subscribe to receive regular updates hosted on the SALT Shaker blog.