- Our Blog
On March 6, 2017, the South Dakota Circuit Court for the Sixth Judicial Circuit ruled that the state’s “economic presence” nexus law (SDCL 10-64-1 et seq.) is unconstitutional. The Court entered an Order Granting Defendants’ Motion for Summary Judgment on the complaint filed by the State of South Dakota against Internet retailers Wayfair Inc., Overstock.com, Inc. and Newegg Inc.
On February 27, 2016, partner Matthew Schaefer presented a seminar at the Council on State Taxation’s Annual Sales Tax Conference and Audit Session, which was held this year in San Antonio, Texas. Schaefer’s session was entitled “Can States Regulate Remote Sellers Into Submission To Collect States’ Taxes?” The discussion focused on state use tax notice and reporting laws, exam ...
On January 24, 2016, Martin Eisenstein and Matthew Schaefer gave an advanced workshop at the 26th Annual Ohio Tax Conference in Columbus, Ohio regarding “Factor Presence Nexus for State and Local Taxes: Meeting the Challenges of Developing States Standards for Income, Sales and Gross Receipts Taxes.
On Monday, November 7, 2016, acting as counsel to the Direct Marketing Association, Brann & Isaacson filed a Brief in Opposition to the Conditional Cross-Petition for a Writ of Certiorari filed by the State of Colorado with the United States Supreme Court in Brohl v. Direct Mktg. Ass’n, No. 16-458. The DMA opposes the effort of the State to convert the DMA’s petition for cert. in DMA v.
On Monday, August 29, 2016, the Direct Marketing Association filed a Petition for a Writ of Certiorari with the United States Supreme Court seeking review of the decision of the Tenth Circuit Court of Appeals in Direct Mktg. Ass’n v. Brohl, 814 F.3d 1129 (10th Cir. 2016). Brann & Isaacson senior partner George Isaacson and partner Matthew Schaefer are co-counsel to the DMA in the case.
Brann & Isaacson Partner Matthew Schaefer authored the article “Internet sales taxes: US states aim to put Quill on the agenda,” appearing in the August 2016 issue of E-Commerce Law & Policy. In the article, Schaefer describes recent and newly-proposed state “economic nexus” laws that seek to undermine the “physical presence” standard of substantial nexus reaffirmed by ...
Another state has adopted Colorado-style notice and reporting requirements. On June 17, 2016, Louisiana Governor John Bel Edwards signed into law Act No. 559 (formerly House Bill No. 1121) [To read the law, click here.], imposing customer notification and annual reporting requirements on each “remote retailer” making sales of tangible personal property or taxable services sour ...
On May 18, 2016, Oklahoma enacted a new statute, HB 2531, patterned, in part, after the Colorado notice and reporting law that has been the subject of long-running federal court litigation in Direct Marketing Association v. Brohl, 814 F.3d 1129 (2015). (Brann & Isaacson represents the DMA in the Colorado suit.
Not to be out done by other states that have enacted laws intended to challenge or circumvent the Supreme Court’s decision in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), Vermont has enacted a new statute that adopts both South Dakota-type sales tax “economic nexus” thresholds and Colorado-type customer notification provisions.
On March 22, 2016, South Dakota Governor Dennis Daugaard signed into law SB 106, legislation that adopts an “economic presence” approach to requiring remote catalog and Internet sellers to report South Dakota sales tax. The law provides that “any seller selling tangible personal property, products transferred electronically, or services for delivery into South Dakota, who does ...
On May 29, 2015, the Governor of Puerto Rico signed into law Act No. 72, which amended the Puerto Rico Internal Revenue Code of 2011 to add provisions adopting a new value added tax (VAT) to replace the existing sales/use tax. The VAT will result in significant changes to Puerto Rico’s system of consumption taxes, including an increase in the tax rate to 10.
Online retailers, welcome to the 2015 state legislative season. No fewer than six states have new developments in the area of online “click through” affiliate nexus legislation, with most of the activity reflecting negative developments for remote sellers. These click through laws remain, in our view, constitutionally suspect, despite the decision of the New York Court of Appe ...