Economic Presence Nexus for State and Local Taxes: Emerging Trends in Gross Receipts, Income, Sales and Use Tax

Meeting the Challenges of Developing State Standards After Wayfair

A live 110-minute CPE webinar with interactive Q&A


Thursday, September 23, 2021 (Today)

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

or call 1-800-926-7926
Course Materials

This course will provide business tax advisers with thorough and up-to-date guidance on various states' responses to Wayfair. The panel will discuss the far-reaching impact Wayfair has on sales tax and income tax and other state business taxes.

Description

Perhaps the most troubling development in state taxation post Wayfair is keeping up with each state's response to the Supreme Court decision. Each of the 45 states that have a sales and use tax law as well as the District of Columbia have adopted economic nexus laws. In addition, local jurisdictions in Alaska and home rule municipalities in Colorado have adopted economic nexus laws, further adding to the burden of sales tax collection.

States' efforts to kill Quill were successful, and the Supreme Court's holding in Quill v. North Dakota--which prevented states from requiring sales tax collection by a retailer without a physical presence in the state--was overturned. Taxpayer nexus in a state now requires no more than a sufficient "economic or virtual presence" in a state.

Economic thresholds and factor presence tests are increasingly common for sales tax, gross receipts taxes, income taxes and even franchise tax. The standards limit planning options and increase the complexity and likelihood of tax payment and filing requirements across multiple states. A significant number of states use the economic or factor presence tests, with other states imposing a market-based standard as a means of increasing tax revenues.

Listen as our expert panel provides a practical guide to the current state of nexus standards and key nexus developments in state taxation of nonresident corporate taxpayers and remote business activity.

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Outline

  1. Nexus standards and implications for state and local sales taxes
  2. Nexus standards and implications for income taxes
  3. Nexus standards and implications for gross receipts taxes and franchise taxes.
  4. Status of challenges to nexus laws
  5. Other nexus developments impacting remote sellers
  6. Planning strategies to minimize state tax risks based on nexus
  7. Special nexus issues regarding services

Benefits

The panel will discuss these and other relevant topics:

  • States and localities that have changed or contemplating changing nexus standards
  • Current status of state nexus initiatives
  • Multistate planning in light of the shift in nexus standards
  • Other key state nexus developments

Faculty

Eisenstein, Martin
Martin Eisenstein

Managing Partner
Brann & Isaacson

Mr. Eisenstein is one of the nation’s leading experts in state and local taxation of information...  |  Read More

Szal, Jamie
Jamie E. T. Szal

Attorney
Brann & Isaacson

Ms. Szal focuses her practice on assisting businesses in all aspects of state and local tax controversy, from...  |  Read More

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