3 ms·
Yes but the definition of “nexus” is changing. Increasingly states are switching to “economic nexus” based on where the “value” from the sale is derived. Aka, c
by ryanwaggoner 9y ago
Yes but the definition of “nexus” is changing. Increasingly states are switching to “economic nexus” based on where the “value” from the sale is derived. Aka, customer address. And they’re levying sales AND income taxes based on that.
I’m curious about interstate enforcement and whether this will even hold up in court in the long run.
- gamblor956 9y agoLevying a sales tax based on address may hold up in court. Levying income taxes based on sales to customers in a state will not absent physical nexus or sufficient in-state activity as to create a de facto nexus. This isn't just a principle of federal tax law, it's a basic principle of tax law everywhere.
- ryanwaggoner 9y agoNot for lack of trying: http://www.bkd.com/articles/2014/new-york-enacts-major-corporate-income-tax-changes-for-out-of-state-businesses.htm http://www.bkd.com/articles/2014/new-york-enacts-major-corpo...