There is finally some activity brewing at the United States Supreme Court impacting state and local taxes! South Dakota v. Wayfair is scheduled to be heard this week and the question in front of the Court is "Should this Court abrogate Quill's sales-tax-only, physical-presence requirement?" Although this doesn't seem like a difficult question, it calls into the play a large part of the historical framework for nexus and its related consequences for modern-day retailers.
Depending on the Court's response, there may either be a significant change in the level of activity required by a business within a jurisdiction before that community can enforce its taxation structure on that business. Alternatively, the result may also be the status quo, resulting in little change or perhaps even a reversal of some of the trends involving economic nexus thresholds.
Regardless of which it is, the State & Local tax community is waiting on the edge of our seats to hear whether the "physical presence" test is still the guideline for retailers across the country.
is scheduled to be heard this week and the question in front of the Court is "Should this Court abrogate Quill's sales-tax-only, p is scheduled to be heard this week and the question in front of the Court is "Should this Court abrogate Quill's sales-tax-only, physical-presence requirement?" Although this doesn't seem like a difficult question, it calls into the play a large part of the historical framework for nexus and its related consequences for modern-day retailer
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