In a 5-4 decision, the US Supreme Court today overruled its landmark decisions in Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois, disposing of the “physical presence” rule that has served as the bright-line standard for whether remote sellers are required to collect state sales taxes.
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Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation
The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation.
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When Holding On Is Letting Go: Alabama Supreme Court Agrees Holding Title to Goods Delivered into City Insufficient for Purposes of Imposing Municipal Business License Tax
By Mike Le and Tim Gustafson
On December 8, 2017, the Alabama Supreme Court issued an order without opinion in Thomas v. Elbow River Marketing Ltd. Partnership, affirming a lower court’s decision that a Canada-based seller of hydrocarbon products did not engage in or carry on a business in the City of Birmingham…
Indiana Has Quill in Its Sights
By Maria Todorova and Chris Beaudro
Effective July 1, 2017, Indiana has added an economic nexus provision to its sales tax law. Indiana Code Section 6-2.5-2-1 has been amended to provide that a retail merchant with no physical presence in Indiana must collect sales tax on its sales made into the state if the retail…
Marketplace Providers Are Statutorily Required to Collect Sales Tax in Minnesota and Washington
By Jeff Friedman and Stephanie Do
A new landmark sales tax statute has been adopted in Minnesota, which expands sales tax collection requirements to those retailers that sell their goods on certain “marketplaces.” Generally, only a retailer that is physically present in a state is required to collect and remit the state’s sales tax. The…
Congress Holds Hearing on Legislation to Limit State Taxation
On July 25, 2017, the US House of Representatives Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law conducted a hearing on “No Regulation Without Representation: HR 2887 and the Growing Problem of States Regulating Beyond Their Borders.” This hearing was important for several reasons:
- State tax nexus legislation has been one of the
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Maine Enacts Economic Nexus Provisions for Sales Tax Purposes
By Chris Beaudro and Carley Roberts
On June 21, 2017, the Maine Legislature overrode the Governor’s veto and passed legislation requiring the collection of sales tax by remote sellers. The legislation requires remote sellers to collect Maine sales tax on their sales into the state if the seller’s gross revenue from sales into Maine exceeds…
Not So Fast: Tennessee Chancery Court Prohibits Department of Revenue from Enforcing Sales Tax Collection By Out-of-State Retailers
By Eric Tresh and Liz Cha
On April 10, 2017, a Tennessee Chancery Court ordered that the Tennessee Department of Revenue is temporarily prohibited from enforcing a regulation that requires out-of-state retailers making annual sales in excess of $500,000 to collect and remit sales tax. The Order arises out of a dispute between the Plaintiffs…
Expanding the Water’s Edge: Four Trends to Watch in International Issues in State Taxation
Traditionally, mandatory worldwide combined reporting was the state corporate tax issue of most concern to companies engaged in international business. States are now moving toward a water’s-edge unitary combination method for both US and foreign-based companies.
In his article for the Spring 2017 edition of Partnering Perspectives, Eversheds Sutherland (US) Senior Counsel Eric Coffill covers…
Florida Issues Nexus Guidance for Reinsurers
By Charles Capouet and Andrew Appleby
The Florida Department of Revenue determined that a reinsurer did not have nexus with Florida for corporate income tax purposes. The Department first asserted that an insurer or reinsurer would have nexus with Florida if it was authorized to transact business in the state. The Department also stated that…