A new lawsuit filed by Wayfair, LLC in Jefferson County Court (Colorado) seeks to address a question left open by the U.S. Supreme Courtâs landmark 2018 Wayfair decision that permits states to impose a sales or use tax collection obligation based on an economic nexus threshold: Does this decision apply to locally-administered sales or use taxes? While many localities have asserted that the same economic nexus standards should apply at the state and local levels,…
On March 9, 2022, the New Jersey legislature unanimously passed, and New Jersey Governor Philip D. Murphy signed, Senate Bill No. 1889 (âSB 1889â), which, among other limitations, prohibits entities with certain ties to Russia or Belarus from benefitting from New Jersey state and local economic development incentives, including certain state and local tax incentives. While several other statesâ pension funds have moved to divest themselves of Russian financial holdings, SB 1889âwhich was swiftly introduced…
Ever since the U.S. Supreme Court overturned the physical presence nexus requirement for state sales and use taxes in South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), taxpayers and practitioners have questioned the extent to which the Courtâs holding applies to locally administered sales and use taxes. This question is often rooted in the Courtâs statement in Wayfair that âStates may not impose undue burdens on interstate commerceâ and its reference to Pike v.…
The City of Chicago recently issued nexus guidance and a limited safe harbor for City tax purposes in light of the U.S. Supreme Courtâs pivotal South Dakota v. Wayfair ruling and the State of Illinoisâ statutory economic nexus standards. True to form, the City implemented its new nexus standards by executive action via publication of a ânexus and safe harborâ âinformation bulletinâ on its website (available on the Cityâs website, here), as opposed to the Chicago City Council more formally (and more appropriately) adopting a new ordinance.