Posts Tagged ‘Nexus’
Wayfair and Nexus: The Aftermath – Part 4
As states continue to issue guidance on their Wayfair rules, we are beginning to see the slight differences among them that will add to the complexity and cost of compliance. In addition, Hawaii is the first state to enact a Wayfair rule for income tax nexus. This article summarizes recent post-Wayfair activity in Wisconsin, California,…
Read MoreWayfair and Nexus: The Aftermath – Part 3
Indiana issued much-needed guidance to address which sales are used to calculate the economic nexus revenue threshold (other states need to as well), and the City of Philadelphia has joined the party with an economic nexus rule for its local income tax. In previous editions of our SALT Newsletter, we wrote about the flurry of…
Read MoreWashington Enacts New Economic Nexus Rules for B&O and Sales Taxes
Recent legislation in Washington will expand Business & Occupation Tax nexus to capture more businesses and imposes certain reporting requirements on marketplace facilitators. By Jeff Glickman, SALT Partner On March 14, 2019, Washington Governor Inslee signed into legislation Substitute Senate Bill 5581, which made changes to certain economic nexus provisions under the states Business & Occupation…
Read MoreCalifornia Rules That Delivery of Goods in Taxpayer’s Trucks Satisfies P.L. 86-272 Nexus Protection
A federal law limiting income tax nexus allows companies to engage in certain solicitation activities in a state without having to pay income tax, but only if the representatives engaging in such activities understand what activities are and are not permitted. By Jeff Glickman, SALT Partner As a general rule, states take an expansive view when…
Read MoreTexas Rules That Online Clothing Retailer Has Physical Presence Nexus
Even after Wayfair, physical presence can still create nexus, and taxpayers that own property that is temporarily located in a state can establish sales tax nexus, as explained in this Texas private letter ruling. By Tina M. Chunn, SALT senior manager Every day, entrepreneurs are finding new ways to provide goods and services to the market…
Read MoreIllinois Adopts Regulation on Trade Show Nexus
The Illinois Department of Revenue adopted a new regulation addressing a safe harbor rule with respect to nexus arising from trade show attendance. Trade shows can be an indispensable means for businesses to promote their products and services. However, depending on the states in which trade shows are held, businesses may end up creating nexus…
Read MoreOregon Court Rules That Banks with No Physical Presence Have Corporate Income Tax Nexus
The Oregon Supreme Court ruled that two banks without physical presence still have income tax nexus in Oregon, impacting the computation of the group’s unitary tax liability. By Jess Johannesen, SALT Manager In states that permit or require unitary (combined) income tax filings, the unitary group will compute one combined apportionment percentage based on the factors…
Read MoreWayfair and Sales Tax Nexus: The Aftermath Part 2
Eleven more states will begin enforcement of their economic nexus sales tax rules beginning on Oct. 1, 2018. In our July 2018 SALT Newsletter, we wrote about the flurry of state activity leading up to and immediately following the United States Supreme Court decision in South Dakota v. Wayfair.[1] Guidance continues to be published by…
Read MoreVirginia Rules That Nexus is Created by In-State Contractor Marketing to Out-of-State Customers
Virginia ruled that a business has sales/use tax nexus in the state when it has an independent contractor who solicits sales from a location in the state, even if all of his target customers are outside of the state. By Tina M. Chunn, SALT senior manager Sales tax nexus has become a very hot topic these…
Read MoreWayfair and Sales Tax Nexus: Let the Aftermath Begin
There has been a flurry of state activity leading up to and following the Wayfair decision, as states begin the process of sorting out when and how they will enforce these new rules. It has been approximately six weeks since the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, which we wrote about…
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