MFA Update: Rep. Goodlatte’s Seven Principles and an Interview with George Isaacson

Although the Marketplace Fairness Act (S. 743) (“MFA”) has not yet progressed out of a House committee since its Senate passage last spring, it continues to make headlines. In late September, the House Judiciary Committee, chaired by Rep. Bob Goodlatte (R-Va.), released seven “Principles on Internet Sales Tax.” Brann & Isaacson senior partner George Isaacson...

Litigation News: Colorado and Cook County Update

We have written frequently about the DMA case challenging Colorado’s notice and reporting law. The law, which requires remote sellers to inform consumers of their obligation to self-report sales and use tax and which also requires sellers to hand over Colorado customers’ names to the state’s Department of Revenue, was declared unconstitutional in 2012 by...

Beware of Taxation of Advertising Inserts

During the last legislative session in Maine, the legislature approved, and Governor Lepage signed, a bill to eliminate the exemption from the sales tax for publications. L.D. 1509, 126th Legs., Part P, (Me. 2013). This law went into effect yesterday. The law now requires the taxation of magazines and newspapers. The sleeping dog, however, is...

Amicus Briefs Filed in Amazon.com and Overstock.com Supreme Court Case

On September 23, 2013, several organizations and companies filed briefs as amici curiae in support of the petitions for a writ of certiorari filed by Overstock.Com, Inc., Amazon.com., Inc., and Amazon Services, LLC, requesting review by the United States Supreme Court of the New York Court of Appeals decision in Overstock.com, Inc. v. New York...

Amazon.com and Overstock.com Petition U.S. Supreme Court over New York Affiliate Nexus Law

We’ve written frequently about developments in Amazon.com and Overstock.com’s challenges to the New York State affiliate nexus law (a law which has inspired similar laws in many other states). Last spring, the New York Court of Appeals, the State’s highest court, upheld the law, stating that, in regards to the parties’ Commerce Clause claims, the...

Judge Enjoins Cook County from Enforcing Use Tax

We write frequently about the difficult task retailers face in complying with the myriad state and local tax regimes in this country.  State and local tax rules are ever changing, both through legislative and regulatory efforts and also through actions of administrative bodies and even the courts.  For your average retailer, keeping abreast of every...

Washington Court Rules On Statutory Exclusion For Internet Service, Awards Refund To Online Services Provider

On June 4, 2013, the Washington Superior Court issued a decision that AOL, Inc. is entitled to a multi–million dollar refund of sales tax paid on services that AOL purchased for use in providing Internet access and online services to its members during the period 2002-2006. In response to an appeal by the Washington Department...

Affiliate Nexus Law Update: Minnesota and Maine Approve New Statutes, Missouri Governor Vetoes Bill

While the Marketplace Fairness Act sits in committee in Congress awaiting hearings, two more states have enacted affiliate nexus statutes imposing tax on remote sellers. The governor of another state, however, declined to add his state to the list of jurisdictions enacting counterproductive, and arguably unconstitutional, “click through” nexus laws.  Below is a quick round...

The Marketplace Fairness Act: Are Online Retailers Now Required to Collect and Remit Every States’ Sales Tax Even Though They Do Not Have A Physical Presence?

On May 6, 2013, the U.S. Senate passed the Marketplace Fairness Act (S.743). If enacted into law, the Act would require Internet sellers (as well as catalogers and other direct marketers) to collect and remit the sales and use tax of each state (and any local jurisdictions that assess sales taxes) on all of their...

Illinois Update: Oral Arguments Heard in PMA v Hamer

On Wednesday, May 22, 2013, the Illinois Supreme Court heard oral argument in Performance Marketing Association v. Hamer. The Court heard the State’s appeal from the ruling of the Cook Country Circuit Court that the Illinois Internet affiliate nexus law is unconstitutional. Brann & Isaacson senior partner George Isaacson argued the case on behalf of...