nexus

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The Oregon Tax Court, Regular Division, held that P.L. 86-272 did not preclude Oregon from imposing its excise (income) tax on an out-of-state manufacturer of cigarettes and other tobacco products based on two activities. First, the court held that the manufacturer’s mandate that the in-state wholesalers accept product returns was not a protected activity. The…

Pennsylvania recently codified the state’s corporate income tax economic nexus threshold, making corporations with no physical presence in Pennsylvania responsible for corporate income tax if they have sales of $500,000 or more per year sourced to Pennsylvania for tax years beginning after December 31, 2022. The legislation also includes a non-exhaustive list of other nexus…

The Massachusetts Supreme Judicial Court has accepted a direct appeal from an internet retailer contesting the Department’s position that the in-state presence of cookies and apps were sufficient to satisfy the physical presence nexus standards in place prior to the US Supreme Court’s decision in South Dakota v. Wayfair, Inc. The Department assessed use…

The New Jersey Tax Court ruled that the in-state activities of an out-of-state wholesale produce distributor were protected under Public Law 86-272 (P.L. 86-272), a federal law that prohibits states from imposing a net income tax on an out-of-state taxpayer.  The Taxpayer had no offices, property, employees or inventory in New Jersey, but it did…

On April 16, 2021, Governor Laura Kelly vetoed S.B. 50, which would require sales and use tax collection by marketplace facilitators and would set a remote seller tax collection threshold. Marketplace facilitators would be required to collect and remit these taxes if, during the current or immediately preceding calendar year: (1) the marketplace facilitator…

The Massachusetts Appellate Tax Board (ATB) granted summary judgement for taxpayer U.S. Auto Parts Network, Inc. (U.S. Auto Parts), abating the Department of Revenue’s sales and use tax assessment based on a finding that the online auto parts seller had acquired “cookie nexus” with the state. The Department’s economic nexus regulation, the “Internet Vendor Rule,”…

On December 4, 2020, the Washington Department of Revenue Appeals Division determined that an out-of-state company’s participation in an annual three-day trade show in Washington state was sufficient to create substantial nexus with the state and subject the company to both business and occupation tax (B&O tax) and retail sales tax. The taxpayer, an out-of-state…