New York State Division of Tax Appeals administrative law judge (ALJ) recently ruled in Matter of AMO USA, Inc. on the question of whether patent license fees are properly subject to sales tax as part of the sale of tangible personal property. The ALJ determined that the patent license fees were not taxable because they were received in exchange for the right to use the taxpayer’s patents, which was a valuable, intangible right that could be sold separately from any tangible personal property.

Read the full article.