Economic Presence Nexus for State and Local Taxes: Meeting the Challenges of Developing State Standards After Wayfair

Economic Presence Tests and Other Emerging Nexus Trends in Gross Receipts, Income, and Sales & Use Tax

Recording of a 110-minute CPE webinar with Q&A

Conducted on Tuesday, September 24, 2019

Recorded event now available

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Program Materials

This webinar 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 is having on not only sales tax but 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. Over 40 states have adopted economic nexus, and at least 45 now have a sales tax with most of these taxing out-of-state sales.

States' efforts to kill Quill were successful, and the Supreme Court's holding in Quill v. North Dakota--that 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, and income taxes. 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
  2. Economic presence as a strategy for states to extend tax reach
  3. Status of challenges to nexus laws
  4. Other nexus developments impacting remote sellers
  5. Planning strategies to minimize state tax risks based on nexus
  6. Special nexus issues regarding services

Benefits

The panel will discuss these and other relevant topics:

  • States and localities that are contemplating changing nexus standards
  • Current status of state nexus initiatives
  • Various nexus methods and the risks arising from each
  • 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

Schaefer, Matthew
Matthew P. Schaefer
State and Local Tax Partner
Brann & Isaacson

Mr. Schaefer regularly advises clients on state sales and use tax issues, including those involving direct mail...  |  Read More

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