Over the past several decades nexus has been at the forefront of the state and local tax world. Since the Quill ruling in 1992, states have aggressively created ways in which a company can have a sufficient connection to their state. Once the connection, or “nexus,” is made, a state…
Tennessee has issued a notice stating that tours fall under the definition of “amusement” and are subject to sales and use tax. While amusements typically appear as places of amusement, such as amusement parks, concerts, and other shows, Tennessee also includes tours under that definition. The first category of tours…
As it turns out, Colorado really was just the beginning. As of January 1, 2018, Washington will begin requiring remote sellers to either remit sales and use tax or comply with reporting and notice requirements similar to those in Direct Mktg. Ass’n v. Brohl (DMA IV), 814 F.3d 1129 (10th…
The United States Constitution expressly forbids ex post facto laws with respect to both the federal and state governments.[i] An ex post facto law is one that retroactively changes the legal status and consequences of a particular action. The easiest way to understand it is in the criminal realm. Today,…
Earlier in 2017, Premier Netcomm Solutions LLC (“Premier”) lost on reconsideration in New Jersey tax court. The case dealt with the taxability of software as a service (“SaaS”) dating back to an audit from 2004 through 2005. After initially beating for state, the court overturned a prior decision on reconsideration,…
Over the past several years software as a service (“SaaS”) has been a booming industry. Pioneers in the cloud computing industry, like Salesforce, have developed web based applications that offer a wide range of services to the user. Driven by competitors such as Microsoft, Adobe, Sap, ADP, Oracle, IBM, Intuit…
Tennessee is the latest of states to jump on the economic nexus bandwagon. In an effort to sidestep the physical presence the proposed rule would require out-of-state dealers that engage in the regular or systematic solicitation of consumers in Tennessee through any means and make sales exceeding $500,000 to Tennessee…
If states could impose tax on every company that makes a sale within its borders, they would. Luckily, the Commerce Clause of the Constitution requires something known as “nexus,” or a connection, between a company and state in order for that company to be subject to state and local taxes.…
Hawaii was the most recent in a line of states to take a stance in the long tax battle between online travel companies, such as Priceline, Expedia and Orbitz, and states over what is commonly referred to as “tourist development taxes,” or “bed taxes.” Over the last couple of years,…
Florida’s hotel reservation industry recently received an important victory relating to Tourist Development Tax (“TDT”). TDT is a tax imposed on the privilege of renting, leasing or letting “for consideration any living quarters or accommodations in any hotel . . ., or condominium for a term of six months or…