Massachusetts – Online Sales Tax Moving Toward Lawsuit

June 6, 2017
Aaron Nicodemus
Bloomberg BNA

“A trade group that represents e-retailers like eBay Inc. and PayPal Inc. plans to sue Massachusetts to stop a plan to collect sales taxes from out-of-state online retailers.

NetChoice, a trade group based in Washington, has indicated it plans to sue the state Department of Revenue over Directive 17-1, set to take effect July 1. Released in early April, the directive requires collection of the state’s 6.25 percent sales tax from out-of-state internet vendors that sold more than $500,000 annually in the state and made sales for in-state delivery in 100 or more transactions.”

“The provision of the Massachusetts directive that NetChoice will sue over in Massachusetts Superior Court is the attempt to establish that cookies on a consumer’s computer or phone, or apps on a smartphone, establish an in-state physical presence to fulfill the standard set by the U.S. Supreme Court in Quill Corp. v. North Dakota. That decision prohibits states from imposing sales and use tax collection obligations on vendors without an in-state physical presence.”

For Further Information:
Massachusetts Online Sales Tax Moving Toward Lawsuit-Bloomberg BNA