2016
Substantial Nexus Under Siege: Industry Fights Back!
Martin Eisenstein and David Bertoni have published their latest blog for members of the American Catalog Mailers Association: The Industry Is Fighting Back. The blog goes over each of the major battlefronts in the states’ multi-pronged effort to overturn the long-settled Commerce Clause rule of “substantial nexus,” which requires that companies have a physical presence in a state before they can be subjected to its taxes. The states seek nothing less than taxation without representation, seeking to impose their taxes taxes on companies simply because they have customers in the state — and in direct contravention of the clear legal authority to the contrary from the nation’s highest court. In addition to showing why the substantial nexus rule lives on, as strong as ever, in the decisions of the U.S. Supreme Court, the authors go over fights now underway in South Dakota and Alabama, and point to other states that appear to be ready to follow suit. George Isaacson and Matthew Schaefer represent ACMA and four major retailers in the two South Dakota actions that will determine the fate of the states’ nexus-expanding statute. Martin Eisenstein and Matthew Schaefer represent a major retailer in a challenge to an assessment under Alabama’s new nexus-expanding regulation which seeks to do away with the substantial nexus requirement.
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