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The U.S. District Court found that an internet retailer with no physical presence in Louisiana did not have sufficient nexus with St. Tammany Parish to justify the collection of local sales and use taxes. Despite an affiliation with its parent company and a bricks-and-mortar retailer, the courts did not feel nexus had been established since the entities did not share management, employees or offices, and were financially independent of each other. (St. Tammany Parish Tax Collector v., U.S. District Court, Eastern District of Louisiana, No. 05-5695, March 22, 2007)


Counsel representing the State of Louisiana Department of Revenue attempted to prove that Dell Catalog Sales, a mail order computer company, had sufficient nexus through its optional service contracts to be subjected to Louisiana use tax. The judge, however, decided the case in Dell’s favor. The ruling found that Dell did not own the third party service contract provider and held no physical presence in the state of Louisiana; therefore, nexus did not exist. The state intends to appeal the decision. (State of Louisiana and Secretary of the Department of Revenue and Taxation v. Dell Catalog Sales, L.P., May 25th, 2004)


A corporation’s use of independent contractors for computer repair services completed on-site was not enough substantial nexus to qualify for taxation. (Quantex Microsystems, Inc., Louisiana Court of Appeal, First Circuit, No. 2000 CA 0307, July 3, 2001.)



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