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5 years ago

Some commentators have expressed desire for a return to the pre-Bellas Hess approach to sales and use tax that resembles the business and occupation tax model: “[t]hse test is simply the nature and extent of the activities”. See Scripto Inc. v. Carson, 362 U.S. 207, 211 (1960). Instead of the “physical presence” rule, an interstate entity would be analyzed on its economic nexus with the state and while interstate entities cannot be required by States to remit taxes merely for the pleasure of conducting interstate business, some believe they should be required to contribute for the benefits they derive. General… Read more »

5 years ago

Any law student, and even lawyers who have been out of law school for decades, will remember (even vaguely) the case of International Shoe, in which the Supreme Court held that in order to sustain “traditional notions of fair play and substantial justice,” the Constitution’s Due Process Clause requires minimum contacts with a forum state for the state’s courts to have personal jurisdiction over that party. Int’l Shoe Co. v. Washington, 326 U.S. 319 (1945). In Quill, the Court went a step further to establish a bright-line physical presence test, requiring a party to be physically present in-state to meet… Read more »

2 years ago

While I find this analysis extremely thorough, I agree with the author and find it worth keeping up with the impacts of Wayfair on state economies in the three years following it and different legal issues and tax policies that have arisen in the online marketplace arena. Since the 2018 Wayfair decision, nearly every state has expanded its nexus standard, often in a manner similar to South Dakota’s legislation. Three years after Wayfair – now what?, PwC, (last visited Aug. 23, 2021); South Dakota v. Wayfair is Decided: What does It Mean for You?, Sales Tax Institute, (last… Read more »

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