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The Alabama Supreme Court will not hear the case of Yelverton’s, Inc. v. Jefferson County, which allows the opinion of the Court of Civil Appeals to stand. The taxpayer in this case was found not to have nexus in Jefferson County, and was therefore not required to collect and remit local sales tax for that locally administered jurisdiction. Yelverton’s, a retailer located in Walker County, did not charge local tax for sales shipped into Jefferson County as they did not feel they met nexus requirements for doing so. Jefferson County felt they could interpret substantial nexus differently than the state, and that Yelverton’s had indeed met their nexus requirements. The Court of Civil Appeals had sided with the taxpayer by deciding that while local jurisdictions could issue their own regulations, those regulations should not be too dissimilar from the state’s laws. (Yelverton’s Inc. v. Jefferson County, Court of Civil Appeals of Alabama, No. 2951320, 5/9/97)


In a ruling by the Texas Comptroller’s office, an out of state business whose only presence in Texas was software licensed to customers, was deemed to maintain a sufficient presence or nexus such that it is required to collect Texas use tax on it license fees. The state argued that the software is tangible personal property and the licenses are akin to leases and therefore the software company maintained property within the state. The number of licenses and the fact that they were not perpetual "shrink-wrap" licenses provided a sufficient presence in the Comptroller’s opinion. (Texas Comptroller of Public Accounts, Hearing No. 36,237, July 21, 1998)



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