Weekly Round-Up: States Challenging Nexus and Apportionment Rules Through Litigation and Legislation


Highlights from the 6/24/16 issue of the Weekly State Tax Report :

  • Minnesota Not Bound by Multistate Tax Compact: High Court
    The Minnesota Supreme Court rejected Kimberly-Clark Corp.'s claim for a state tax refund, holding that the state wasn't bound by the Multistate Tax Compact's provisions after repealing two of them in the late 1980's.
  • Online Retailers Face Tennessee Tax as State Joins ‘Quill’ Fight
    Tennessee is looking to join a growing list of states that would require online retailers to collect sales tax for the state despite lacking a physical presence.
  • New Jersey High Court Refuses ‘Throwout Rule’ Case
    The New Jersey Supreme Court will not hear an appeal from the state's tax authority over a lower court's decision about the state's now defunct “throwout rule,” upholding a victory for intangible holding companies.
  • Fantasy Sports Could Be Regulated, Taxed in New York
    The film and music industries would get tax credits, and daily fantasy sports sites like DraftKings Inc. and FanDuel Inc. would be legalized and taxed under bills approved by the New York State Legislature in the final days before it adjourned for 2016.
  • Marketers Get More Time to Appeal Colorado Online Sales Tax to Supreme Court
    The U.S. Supreme Court has granted the Direct Marketing Association more time to file its petition for review of a February ruling by the U.S. Court of Appeals for the Tenth Circuit that Colorado's law requiring out-of-state retailers to report sales made online to state residents is constitutional.

Some notable developments from the State Tax Developments Tracker –Bloomberg BNA’s tool for monitoring important developments in all the states:

  • South Carolina Department of Revenue Is Updating Its Withholding Tax Table in 2017 for First Time in 25 Years
  • New Hampshire Legislature Enacts Law Regarding Sale or Exchange of Interest in Business Organization Under Business Profits Tax
  • Florida Department of Revenue Issues Tax Information Publication Regarding Certain Insurance Assessments No Longer Being Subject to Insurance Premium Tax
  • Louisiana Legislature Enacts Law Establishing Notification and Reporting Requirements Pertaining to Retail Sales Made by Remote Retailers
  • Texas Comptroller of Public Accounts Proposes Amendments to Seller's and Purchaser's Responsibilities, Including Nexus, Permits, Returns and Reporting Periods, Collection and Exemption Rules

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…  

Throwout: New Jersey Supreme Court Denies Certification, by Morrison & Foerster LLP

Sourcing of Service Revenue, Can New York State and City Make It Any Harder?, by Friedman LLP

Compiled by Lauren Colandreo