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Joseph Lipari and Aaron S. Gaynor Joseph Lipari and Aaron S. Gaynor

A few weeks ago, the New York state tax department seized iconic Brooklyn pizzeria Di Fara in connection with some $150,000 in unpaid sales tax. Although Mayor Bill de Blasio vowed to come to the aid of the beloved institution, Gov. Andrew Cuomo was quick to remind the mayor that it is the state—and not the City—that controls the administration of sales tax. This New York state versus City dispute comes mere months after a more prosaic controversy in SoulCycle, DTA Nos. 827698 and 827699 (N.Y. Div. Tax App., May 23, 2019). SoulCycle concerned a particularly knotty interaction of the state and City sales tax rules, leading to an unfavorable result for the taxpayer.

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