ACMA and NetChoice File Suit Challenging Wyoming and Indiana Anti-Quill Laws

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ACMA and NetChoice File Suit Challenging Wyoming and Indiana Anti-Quill Laws


Last week, on behalf of the American Catalog Mailers Association and NetChoice, Brann & Isaacson initiated lawsuits in state court in Wyoming and Indiana, challenging the constitutionality of each state’s “economic nexus” statute, due to take effect July 1, 2017.  On Wednesday, June 28, the associations filed suit in Circuit Court in Laramie County, Wyoming against the Director of Revenue challenging Wyo. Stat. § 39-15-501(a), which purports to require retailers with no physical presence in the state to collect Wyoming sales tax if they have made sales to Wyoming customers during the prior or current calendar year of over $100,000 or in 200 separate transactions.  On Friday, June 30, the associations sued to invalidate a similar Indiana statute, House Enrolled Act No. 1129, bringing a declaratory judgment action in the Commercial Court in Marion County, Indiana against the Commissioner of Revenue, as well as the Department of Revenue and Governor Holcomb.  Both statutes are directly at odds with the physical presence, substantial nexus standard for state sales taxes reaffirmed in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), and are modeled after a 2016 South Dakota statute which was struck down as unconstitutional in South Dakota state court on March 6, 2017, in another matter being handled by Brann & Isaacson.  The South Dakota case is now on appeal before the South Dakota Supreme Court.

The ACMA and NetChoice are represented in both suits by Senior Partner George S. Isaacson and Partner Matthew P. Schaefer.

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