State Tax Snapshot: Nexus for Telecommuting Employees Is Unfair, Webinar Attendees Say

It’s not fair for an out-of-state company to be deemed to have income tax nexus with a jurisdiction based on the in-state presence of a single telecommuting employee who performs back office administration functions, most attendees of a recent BBNA Webinar said in a poll.

We asked this and other polling questions to those attendingthe recent 2013 State Tax Department Survey Webinar in which top experts analyzed the state tax department officials’ responses to BBNA’s annual survey. The survey addresses nexus and several other gray areas of state taxation. An encore presentation of the webinar will run on June 6.

The majority of attendees also thought that the protections afforded under Pub. L. No. 86-272 should be extended to non-U.S. entities.

 Some of the polling questions focused on sales tax issues. The attendees were somewhat divided on the question of whether the U.S. House should pass the Marketplace Fairness Act. Sixty percent said the act should be passed, while 40 percent said it should not.

 The polling results also suggest that the social media coupon trend may have run its course. Ninety percent of the attendees said that they had managed to escape having to determine how to collect tax when a social media coupon is presented.

By Steven Roll

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