Multi-State – Virginia Court Dismisses Massachusetts Online Sales Tax Case

A Virginia judge refused to weigh in on the legality of taxing out-of-state vendors based on their use of in-state software, saying the issue should be decided in Massachusetts.

But it may soon be a moot point because that so-called “cookie nexus” rule is being phased out in Massachusetts and a handful of other states. In its place are much broader Wayfair-inspired rules to collect taxes from remote vendors based on volume of sales in a state.

Crutchfield Corp. LLC of Charlottesville, Va., an online auto parts retailer, sued the Massachusetts Department of Revenue in October 2017 over the department’s regulation that requires online vendors to collect state sales tax if they use in-state apps and computer “cookies.”

For the full story: Bloomberg Tax

bloomberg tax
By Tripp baltz and adrianne appel
Oct 9, 2019