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RECENT IMPLEMENTATION OF ECONOMIC NEXUS THRESHOLD FOR TEXAS FRANCHISE TAXES IN THE WAKE OF WAYFAIR, INC.

In Nexus, State and Local, Texas Tax by Edward CortsLeave a Comment

In the December 20, 2019, issue of the Texas Register (44 TexReg 8021), the Texas Comptroller of Public Accounts (“Comptroller”) announced that it was adopting proposed amendments[1] to the “nexus” section of 34 TAC §3.586.  The proposed amendments establish rules in which a non-Texas entity can create “nexus” with Texas without having a physical presence in the state.  The effective …

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Wayfair in the Lone Star State

In Nexus, State and Local by freemanlawdevLeave a Comment

The Supreme Court’s decision in South Dakota v. Wayfair created a monumental shift in the state tax landscape. Prior to the Court’s decision, forty-one states passed “kill Quill” laws in an effort to override the default physical presence rule. In its 5-4 decision, the Court abandoned the physical presence requirement established by Quill Corp v. North Dakota. As a result, …

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A Battle of the Dakotas: South Dakota v. Wayfair

In Nexus, State and Local by freemanlawdevLeave a Comment

On April 17, 2018, the Supreme Court will hear arguments in South Dakota v. Wayfair. Why does it matter? The outcome of this case could substantially affect the current sales tax landscape for transactions executed over the internet. Currently, State X is not allowed to collect sales tax (from the seller) on retail purchases made over the internet unless the …