Multi-State – State Of Wayfair: More States Widening Corporate Income Tax Pool


At least six states and the City of Brotherly Love have broadened their corporate income tax systems to include standards based on the level of economic activity a company has in their locales—and local governments are just getting started.

“I think we are seeing an increasing trend here and more states jumping on board,” said Richard Cram, director of the Multistate Tax Commission’s National Nexus Program.

Speaking during a Vanderbilt University Law School state and local tax forum, Cram pointed to a rush of taxing jurisdictions weaving features from the Wayfair ruling into their corporate income tax systems in the last six months. In most cases the laws and regulations are going into effect in the 2020 tax year.

The Supreme Court’s seminal South Dakota v. Wayfairruling tossed out the court’s 1992 physical presence standard affirmed in Quill Corp. v. North Dakota, which limited the ability of states to tax remote sales. The majority in the 5-4 ruling suggested strongly that South Dakota’s law, which requires remote sellers to collect sales tax if they have more than $100,000 in sales or 200 transactions with buyers in the state, would pass constitutional muster.

For the full story: Bloomberg Tax

bloomberg tax
by tripp baltz
october 29, 2019