Category Archives: Nexus

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Overturning Quill: The Widespread Reach of the South Dakota v. Wayfair Decision

Today, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, overturning Quill Corp. v. North Dakota, 504 U. S. 298 (1992) and National Bellas Hess, Inc. v. Department of Revenue of Ill., 386 U. S. 753 (1967), that required businesses to have a physical presence in a taxing jurisdiction in order to … Continue Reading

Alabama Tax Amnesty – Catching the Wave or Sliding in Before the Doors Close?

Limited tax amnesty programs gain popularity every few years and this is one of those years. The Alabama legislature has joined the growing list of states providing amnesty programs for taxpayers with unreported tax liabilities.  The Tax Delinquency Amnesty Act of 2018 was recently passed and will be in effect from July 1, 2018, to … Continue Reading

It’s Like Déjà Vu, All Over Again: Wayfair and the Evolution of Commerce

The United States Supreme Court has recently agreed to hear oral argument in South Dakota v. Wayfair, Inc. – a case exploring the boundaries of sales and use tax nexus.  The crux of the dispute in Wayfair relates to the defining purposes and protections of Commerce Clause of the U.S. Constitution.  Much of the discussion … Continue Reading

Is it Too Late to Jump on the Bandwagon? – Mississippi’s Economic Presence Nexus Standard

The Mississippi Department of Revenue adopted a new sales and use tax regulation articulating the Department’s position regarding out-of-state sales into the state.  The regulation provides that sellers lacking physical presence in the state “but who are purposefully or systematically exploiting the Mississippi market have a substantial economic presence for use tax purposes if their … Continue Reading

Risky Business? – South Dakota v. Wayfair, Inc. Sets Stage for SCOTUS Review of Physical Presence Requirement for Sales and Use Taxes

It has long been the law of the land that a taxpayer must have a discernable physical presence in a state before it can be required to collect and remit sales and use taxes. The U.S. Supreme Court reaffirmed this bright-line test in the 1992 case of Quill Corp. v. North Dakota. In Quill, the … Continue Reading

On Shaky Ground: Are Pass-Through Entity Withholding Statutes Constitutional?

Taxpayers routinely use pass-through entities (PTEs) such as limited partnerships, limited liability companies, or S corporations to conduct multistate business. Because most states conform to federal law, there is no entity-level tax on the PTE. Instead, states seek to tax the owners of the PTE on the income received – or passed-through – from the … Continue Reading

TracFone Denied Sales Tax Exemption for Sale of Telecommunications Services

The Supreme Court of Missouri recently held that TracFone, a Miami-based telecommunications company, was not entitled to claim a statutory sales tax exemption relating to retail sales “in commerce.” TracFone purchased “air time” from national carriers for resale.  The “air time” and a TracFone handset were sold to Missouri residents in prepaid packages.  All handsets … Continue Reading
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