The U.S. statesâ tireless attempts at diminishing protections afforded under Public Law 86-272 (âP.L. 86-272â) have been headlining the state tax press for the last several years. For example, we saw, among other developments: (1) the MTC publish its revised Statement of Information (âMTC Statement of Informationâ) outlining proposed protected and unprotected activities under P.L. 86-272, including certain activities conducted over the Internet; (2) states (including California, New Jersey and New York) publish guidance seeking…
The Massachusetts Supreme Judicial Court held that an online retailer was not required to collect and remit the stateâs sales and use tax prior to the United States Supreme Courtâs 2018 decision in South Dakota v. Wayfair because its use of apps, cookies, and content delivery networks (CDNs) did not create âphysical presenceâ nexus, as required prior to the Wayfair decision, and the Wayfair âeconomic nexusâ standard could not apply retroactively. U.S. Auto Parts Network,…
A new lawsuit filed by Wayfair, LLC in Jefferson County Court (Colorado) seeks to address a question left open by the U.S. Supreme Courtâs landmark 2018 Wayfair decision that permits states to impose a sales or use tax collection obligation based on an economic nexus threshold: Does this decision apply to locally-administered sales or use taxes? While many localities have asserted that the same economic nexus standards should apply at the state and local levels,…
Ever since the U.S. Supreme Court overturned the physical presence nexus requirement for state sales and use taxes in South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), taxpayers and practitioners have questioned the extent to which the Courtâs holding applies to locally administered sales and use taxes. This question is often rooted in the Courtâs statement in Wayfair that âStates may not impose undue burdens on interstate commerceâ and its reference to Pike v.…