The New York Appellate Division unanimously affirmed a lower court order holding that New York’s regulation 20 NYCRR 1-2.10 – which addresses the application of P.L. 86-272 to Internet-based business activities – is not preempted by the federal statute. The American Catalog Mailers Association, a trade group representing merchants who sell goods through catalogs, telephone
Nexus / Jurisdiction / P.L. 86-272
On the rocks: Maine court finds income tax nexus for liquor supplier with in-state bailment inventory
By Daniel Schlueter & Olivia Dibb on
Posted in Income Tax
On April 2, 2026, the Supreme Judicial Court of Maine ruled that a liquor supplier was subject to Maine income tax and owed nearly $750,000 in state income tax, penalties, and interest for the 2011-2017 tax years.
The liquor supplier argued that it was not subject to income tax because it did not have nexus…
Nexus news – recent Due Process and P.L. 86-272 cases
By Breen Schiller on
Posted in In the News
In this column for Journal of State Taxation, Eversheds Sutherland Partner Breen Schiller discusses two important nexus defenses, Due Process Clause and P.L. 86-272, as well developments in this area.
Going to the Dogs: Pet Food Seller’s Intelligence Gathering in Maryland Exceeds P.L. 86-272 Protection
Posted in In the News, Income Tax
The Maryland Court of Special Appeals upheld the Comptroller’s determination that an out-of-state pet food seller did not qualify for Public Law 86-272 protection because the seller’s collection of competitive information in Maryland by its employees was not ancillary to solicitation of sales and not de minimis. The out-of-state pet food seller maintained a limited…
Get Your Refunds: New Jersey’s Alternative Minimum Tax Preempted by P.L. 86-272, Tax Court Says
By Dennis Jansen & Maria Todorova on
Posted in In the News, Income Tax
On June 28, the New Jersey Tax Court held that the state’s alternative minimum tax (known as the “Alternative Minimum Assessment,” or AMA) – which was repealed for tax years beginning on or after January 1, 2018 – is preempted by P.L. 86-272, a federal statute that bars states from imposing a net income tax…