B&I Files Second Set of Merits Briefs with the Ohio Supreme Court in Cases Challenging the Constitutionality of the Ohio Commercial Activity Tax on Behalf of Remote Sellers

Brann & Isaacson partners Martin Eisenstein, David Bertoni, and Matthew Schaefer filed a second set of merits briefs with the Ohio Supreme Court on November 19, 2015, in three separate cases challenging the constitutionality of the statutory, gross receipts nexus standard applicable to the Ohio Commercial Activity Tax (“CAT”). B&I represents Internet retailers Newegg Inc.,...

B&I Files Second Set of Merits Briefs with the Ohio Supreme Court in Cases Challenging the Constitutionality of the Ohio Commercial Activity Tax on Behalf of Remote Sellers

Brann & Isaacson partners Martin Eisenstein, David Bertoni, and Matthew Schaefer filed a second set of merits briefs with the Ohio Supreme Court on November 19, 2015, in three separate cases challenging the constitutionality of the statutory, gross receipts nexus standard applicable to the Ohio Commercial Activity Tax (“CAT”). B&I represents Internet retailers Newegg Inc.,...

“Factor Presence” Gone Wild

“Factor Presence,” which is the standard first proposed by the Multistate Tax Commission in 2002 for determining nexus for business activity taxes, means that a company has nexus in a state if its sales in the state exceed a specified threshold, or if the company maintains payroll or property in the state above specified amounts....

Some clarity and bad news regarding taxation of cloud computing in Chicago

A trap for the unwary has been the Chicago Personal Property Lease Transaction Tax, which is currently imposed at the rate of 9% on certain leases of tangible personal property. The Chicago Department of Finance, which enforces the Chicago Personal Property Lease Transaction Tax, interprets the term “lease of tangible personal property” broadly, to include...

As Michigan Goes, So Goes Vermont: Michigan Adopts a Click-Through Nexus Law

Since we write this blog from Maine, we can take some liberty with this political observation and apply it to sales tax, as we discuss in this article. On Thursday, January 15, Governor Rick Snyder signed legislation, Senate Bill 658 (MI 97th Legislature, 2014), which is a click-through nexus law.  In particular, the recently-enacted statute,...

Some Good News For Retailers Regarding False Claims Act Cases

It has become increasingly common that private parties have filed qui tam actions against retailers under state false claims act cases, seeking large damage recoveries against the retailers based on the claim that the retailers have failed to remit sales and use taxes and escheat amounts to the states.  We have previously reported on qui...

Software as a Service: Is it a Nontaxable Service?

Many non-state and local tax experts mistakenly believe that subscription charges for Software as a Service (“SaaS”), are not taxable because SaaS is the provision of services. However, there are many states that treat SaaS as taxable. See, e.g., New York TSB-A-11(17)S (June 1, 2011). Fortunately, the majority of states do not tax SaaS. Recently, the Georgia Department...

Illinois and Colorado Adopt Two Different Approaches to Internet Click-Through Nexus Laws

We have written extensively about Internet click-through nexus laws. Indeed, Brann & Isaacson prevailed, on behalf of the Performance Marketing Association, in the challenge to the Illinois Internet click-through nexus law. On October 18, 2013, the Illinois Supreme Court ruled that the Illinois statute violated the federal Internet Tax Freedom Act (“ITFA”), which is found at 47 U.S.C. §151...

State Sales Tax Enforcement After the Supreme Court’s Denial of Cert in Amazon/Overstock

As we have discussed in prior posts, Amazon and Overstock.com filed petitions for certiorari with the U.S. Supreme Court seeking review of the New York Court of Appeals decision that the New York affiliate click-through nexus statute, on its face, did not violate the Commerce Clause. Late last year, the U.S. Supreme Court denied the...

Supreme Court Denies Petitions for Cert of Amazon and Overstock

As we recently wrote, last spring New York State’s highest court, the Court of Appeals, issued a decision upholding the state’s Internet affiliate nexus law after a challenge made by Overstock.com and Amazon.com. The Court of Appeals found that the law, which creates a rebuttable presumption of nexus for out-of-state vendors who employ in-state affiliates,...