Weekly Round-Up: Is New York's New Factor Presence Nexus Standards Vulnerable to Constitutional Challenge?

The recent passage of New York's budget bill will add New York to the list of jurisdictions that assert a threshold for triggering income tax nexus over taxpayers when that part of the legislation takes effect in 2015, Bloomberg BNA state tax law editor Rebecca Helmes ( @RebeccaHelmes ) writes in this week’s issue of the Weekly State Tax Report.

Considering the due process clause's recent rise to prominence in state tax cases, can taxpayers mount a viable challenge to this or other economic nexus provisions?

Helmes’s article,   which can be read in its entirety here , examines due process clause considerations related to economic nexus/factor presence nexus standards.  The article provides an overview of various nexus provisions, recent due process clause decisions that may be applicable to state tax nexus issues, and how states impose economic nexus, whether through minimum receipts thresholds or other means.

In a Bloomberg BNA State Tax Video released this week the Council On State Taxation’s Fred Nicely and the Multistate Tax Commission’s Thomas Shimkin debate whether the physical presence rule applies to income tax nexus.

Bloomberg BNA recently published its annual Survey of State Tax Departments , which among other things provides an in-depth overview of each state’s income tax nexus policies.

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments…

The District of Columbia Considers Impressive Tax Reform Options , by the Tax Foundation

Sutherland SALT Shaker: April 2014 Digest

US House Judiciary Subcommittee holds hearing on Mobile Workforce Act , PwC reports

Compiled by Priya D. Nair

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