Since the landmark decision of Quill Corp. v. North Dakota in 1992, the law of the land has been that an out-of-state business has sales and use tax nexus with a state only when it is a physical presence. This physical presence can manifest itself in several ways – real or personal property sitused or … Continue Reading
We are all familiar with the concept of tax nexus. In order to lawfully impose tax, the taxpayer must have sufficient contacts – or nexus – with the taxing state. The Avnet case dealt with the concept of dissociation – or transactional nexus. At issue in Avnet was whether the taxpayer could bifurcate – or … Continue Reading
The cookie monster famously devours handfuls of cookies. Thanks to recent developments in states’ thinking on physical presence, nexus, and internet commerce, states may use technology “cookies” to devour ever larger shares of companies’ revenues.… Continue Reading
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
In a highly anticipated decision, the Ohio Supreme Court recently held that the physical presence of a taxpayer in Ohio is not a prerequisite for the imposition of the Ohio Commercial Activity Tax (or CAT). This decision will likely signal a “green light” for revenue-hungry states seeking additional to shore up budget deficits.… Continue Reading
