Given the already-tenuous constitutionality of the idea of click-through nexus, it is not surprising that constitutional challenges have been raised in both New York and Illinois.
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Nexus
A Tale of Two States: “Throwout/Throwback Nexus” in New Jersey and California
This item next focuses on two states’ recent approaches to answering what it means to be “subject to tax” or “taxable.”
Use Tax Reporting: Is Colorado Back in Business?
This column revisits the issues presented by the Direct Marketing Association’s suit against the Colorado Department of Revenue and the history thus far.
Internet Tax Freedom Act Preempts Illinois Click-Through Nexus Law
The Illinois Supreme Court held that Illinois’s click-through nexus law is expressly preempted by the federal Internet Tax Freedom Act, which prohibits states from imposing discriminatory taxes on electronic commerce.
Tenth Circuit Throws Out Decision Striking Down Colorado’s Amazon Law
The permanent injunction that a federal district court issued enjoining Colorado from enforcing its Amazon law requiring remote sellers to report sales in the state has been dismissed by an appeals court.
Taxation of the Cloud Still Hazy
This column updates readers on some recent state guidance on cloud service offerings and highlights a few examples of the trends appearing at the state level.
New York Court of Appeals Upholds “Amazon” Law
New York’s highest court has confirmed that New York residents have to pay sales tax on internet sales where the vendor’s only contact with the state is through in-state affiliates.
“Doing Business” in California: Substantial Economic Presence Nexus and the “Throwback” Rule
Technical advice raises a number of interesting issues related to California’s new definition of “doing business” and its impact on taxpayers engaging in foreign commerce.
Trends in Sales and Use Tax for Remote Sellers
Click-through or affiliate nexus legislation has become a popular way for states to require certain remote sellers (i.e., internet vendors) to collect sales or use tax on their sales to in-state residents.
A Practical Approach to Sales Taxes in the Cloud
An approach to analyzing the sales and use tax implications of a purchase on the cloud.
Illinois “Click-Through Nexus” Law Held Unconstitutional
The Circuit Court for Cook County in Illinois declared Illinois’s “click-through nexus” law unconstitutional.
Colorado Notice and Reporting Requirements Declared Unconstitutional
A district court held that a law, which imposed notice and reporting requirements on retailers that do not collect and remit sales tax on sales to Colorado customers, was unconstitutional because it violated the Commerce Clause.
Illinois “Click-Through Nexus” Law Held Unconstitutional
The Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional.
Colorado’s “Amazon” Law Requiring Out-of-State Retailers to Report Sales Held to Be Unconstitutional
A federal district court held that the Colorado law requiring out-of state retailers to report information about customers’ purchases to each customer and to the state is unconstitutional.
Mail-Order Book Seller Has Nexus with State
The Tennessee Court of Appeals held that a corporation that sells books and other publications through the mail to students in schools and home-schooled students had substantial nexus with Tennessee because teachers and parents of the students purchasing the books and publications assisted in ordering and distributing them.
The Evolution of Sales Tax Nexus Expansion Laws
Over the past three years, several states have expanded the activities that create sales tax nexus for out-of-state retailers without a physical presence in the state.
How Does One Tax a Cloud?
State revenue departments face perplexing questions when deciding whether (and how) to tax cloud computing.
California’s Click-Through Nexus Law
In 2011, California enacted a “click-through nexus” law requiring out-of-state online retailers to collect sales tax on all taxable sales of tangible personal property made through internet-based referrals, effective Sept. 2012.
The Emergence of Factor Presence Nexus Standards
Several states have replaced traditional nexus standards with factor presence nexus standards to trigger taxes based upon gross receipts and income.
Current Corporate Income Tax Developments, Part I
Part I of this two-part article focuses on nexus, tax base, allocable/apportionable income, and Sec. 338(h)(10) transactions.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
