It has been over four months since the landmark decision in South Dakota v. Wayfair was handed down. Twenty states are now enforcing some type of economic nexus threshold for sales tax collection, most of which mirror the South Dakota statute upheld in Wayfair. The following are critical issues business owners and managers need... Read More
Multistate Tax & Nexus
The Ohio Supreme Court recently held that the bright-line presence nexus standard for Ohio Commercial Activity Tax (“CAT”) does not violate the U.S. Constitution. Many taxpayers have pending audits or appeals at the Board of Tax Appeals regarding this nexus issue. What should these and other CAT taxpayers do now? First, it is expected the... Read More
In a 5-2 decision, the Ohio Supreme Court found that the $500,000 gross receipts in Ohio standard for creating substantial nexus for the commercial activity tax (CAT) is constitutional. “We hold that given the $500,000 sales-receipts threshold, the burdens imposed by the CAT on interstate commerce are not ‘clearly excessive’ in relation to the legitimate... Read More
Since the U.S. Supreme Court’s decision in Quill v. North Dakota more than 24 years ago, states have been focused on addressing the ability to force a vendor to collect tax in their state in the absence of a physical presence as required by Quill. The fundamental basis for the decision is that in the... Read More
In 2010, Colorado enacted legislation to enhance use tax collection by mandating that non-collecting retailers notify customers of their tax obligation by: Notifying customers at the time of sale that purchases may be subject to Colorado use tax. Providing an annual statement to customers making at least $500 of purchases of the total amount... Read More
Effective January 1, 2016, Alabama requires remote vendors to collect Alabama sales tax when exceeding $250,000 of sales, and either advertising or sending catalogs into the state. Ala. Reg. 810.6-2-.90.03. Although this provision is clearly unconstitutional based upon the U.S. Supreme Court’s decision in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), Alabama seems... Read More
The third annual Northeast Ohio State and Local Tax Conference was held on November 12, 2015 in Independence, Ohio. Matt Chafin, Chief Legal Counsel for the Ohio Department of Taxation, led off the Conference with an Ohio Tax Update, providing valuable insight to the Department of Taxation’s posture and recent initiatives. Chafin is the highest-ranking... Read More
In Comptroller of the Treasury of Maryland v. Wynne, a sharply divided, 5-4 decision, the U.S. Supreme Court held that Maryland’s personal income tax scheme, which prohibits resident individuals from offsetting county level income taxes by amounts paid to other jurisdictions, violates the federal dormant Commerce Clause. In Maryland, personal income tax on state residents... Read More
“Click-through nexus” laws generally attribute the presence of in-state representatives who refer sales to an out-of-state retailer, including via web links, in exchange for a commission for determining sales tax nexus. See e.g., New York Tax Law § 1101(b)(8)(vi). New York was the first state to enact such a “click-through nexus” or Amazon law. Predictably,... Read More
On April 22, 2013, the U.S. Senate voted to take up the Marketplace Fairness Act of 2013 for debate and amendment. Notably, President Obama came out in support of the bill. While several hurdles remain, including passage by the Republican-controlled House of Representatives, this is step towards federal legislation permitting states to force remote sellers, i.e.,... Read More