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.
In-State Delivery and Installation Created Nexus in North Carolina
A North Carolina tax hearing found that a taxpayer who made sales to North Carolina residents had nexus in the state and was subject to tax. The taxpayer was not previously registered in North Carolina, but made sales that included…
Florida Explains Nexus Guidelines
If the only physical contact with the State of Florida is an annual visit to a single customer, in which no sales orders are taken, it is considered to be immaterial and, therefore, no sales and use tax nexus is created.
Nexus Not Created At Connecticut Tradeshows
Effective July 13, 2005, a retailer, if not otherwise engaged in business in the state of Connecticut, which participates in trade shows at the Connecticut Convention Center does not create sales tax nexus. Such retailers, therefore, are not subject to…
MN Executive and Legislative Branches to Sever Contracts with Foreign Vendors.
Beginning in 2006, vendors holding contracts to provide goods or services to the Minnesota Department of Administration and the Minnesota Legislature must have a tax business identification number to indicate that they are registered to collect sales tax in the…
South Carolina’s New House Bill: Physical Presence not Sufficient for Nexus.
A South Carolina bill specifies that owning or using a distribution facility is not considered in determining nexus qualification. “Distribution facility” is defined as an establishment where shipments of tangible personal property are processed for delivery to customers. However, the…
California Rules “”Brick and Mortar”” Stores Created Nexus for Online Retailer.
In a recent decision by the California District Court of Appeals, the court ruled that “brick and mortar” stores in the State of California were acting as agents for an online retailer giving the online retailer nexus in the state.…
Connecticut Introduces Affiliate Nexus Legislation.
Connecticut has introduced legislation that would require remote sellers with significant connection to an in-state seller to collect tax on sales into Connecticut.
Illinois retail giants settle in affiliate nexus lawsuits.
Recent settlement of more than $2.4 million was reached as a result of lawsuits filed against major Illinois retailers due to their failure to collect tax on internet sales.
Massachusetts Discusses Sales Tax Changes
The Massachusetts Department of Revenue has published a release that details changes in Chapter 262 sales and use tax law.
California state agencies may only contract with registered vendors.
Effective January 1, 2004, California state departments and agencies may contract only with vendors, contractors, or affiliates of vendors or contractors who are registered for sales and use tax purposes with the State of California. When offering a contract to…
Complaint Filed Against Online Retailer.
The Illinois Attorney General has filed a complaint against an online retailer under the Illinois Whistleblower Act.
North Carolina transmission builder establishes nexus.
According to a 2004 North Carolina administrative decision, an out-of-state company that sold specialty automobile racing transmissions to North Carolina customers has established nexus due to its ownership of property stored in North Carolina. Transmissions that were sold to North…
Missouri vendors must collect.
In order for vendors to attain eligibility to contract with the State of Missouri, the vendor and its affiliates must collect and pay sales or use tax, regardless of whether they have nexus or not. Effective August 28, 2004, vendors…
Illinois nexus does not allow for tax on tugboat supplies.
Even though a tugboat company passed three out of four prongs of the Commerce Clause test under the U.S. Supreme Court test used in Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), the tax apportioned by the state…
Georgia and New Jersey enforce nexus for contractors.
Georgia and New Jersey have recently passed legislation that will require out-of-state contractors and their affiliates to register to collect sales and use taxes in these states where business is conducted.
SSTP registration does not create Michigan nexus.
With the passage of House Bill No. 5504, the Michigan legislature has established that registration under the multistate streamlined sales and use tax agreement does not create nexus with the state and would not be considered in determining whether nexus…
Texas determines company is responsible for taxes, not independent dealers.
Texas Court of Appeals recently upheld a decision that Alpine Industries, Inc. was a direct sales organization and was responsible for collecting and remitting sales and use tax instead of its independent dealers. Under Texas law the Comptroller can treat…
Louisiana Judge rules in favor of Dell Catalog Sales, L.P.
Counsel representing the State of Louisiana Department of Revenue attempted to prove that Dell Catalog Sales had sufficient nexus through its optional service contracts to be subjected to Louisiana use tax.
Guidelines set on who is allowed to make contracts with state agencies.
Multiple states have recently passed or introduced legislation setting guidelines on who is allowed to make contracts with state agencies.
In Texas a company can create nexus through contract sales people.
In a recent hearing involving a debt collection company Texas upheld that a company can create nexus through contract sales people soliciting business in the state. Furthermore, it was ruled that sales made by these contract sales people qualified the…
Vendor list must be provided to the Indiana Department of Revenue.
Purchasing agents for the department of administration and state educational institutions must provide the department of revenue with a list of vendors who want to sell them property or services. The department will do a check and get back to…
Retailers providing goods or services to South Dakota must be registered to collect tax.
There is a law in South Dakota preventing public corporations from buying goods or services from retailers who meet the definition of a retailer or a retailer maintaining a place of business in the state if the retailer or any…
Alabama trucking companies may be liable for use tax.
This is possible when trucking companies use using trucks in the state to fulfill client contracts even if the taxpayer was exempt from paying sales tax on their initial purchase of these same trucks. Certain trucking companies were taking advantage…