The Regular Division of the Oregon Tax Court just handed down a nexus decision with respect to the collection of an emergency telecommunications tax (E911 Tax). In Ooma, Inc. v. Department of Revenue, TC 5331 Tax Court, 03/02/2020, the Court concluded that notwithstanding the absence of physical presence in Oregon,…
There have been two interesting developments in Arizona as a result of Wayfair. First, the Arizona House of Representatives pushed forward a resolution, H.C.M. 2006, last week to formally ask Congress to enact uniform national legislation to simplify sales tax or similar tax collection by all states and to reduce…
(This article originally was published by Law360 on May 17, 2019.) In the last year, several state legislatures have enacted laws and several state courts have published decisions on whether software as a service, or SaaS, is subject to sales and use tax. These developments impact many SaaS providers, especially…
TAKEAWAYS New legislation sets California’s sales and use tax economic nexus threshold to $500,000. New legislation creates Marketplace Facilitator Act, statutorily defining marketplace facilitators as retailers and sellers. On April 25, 2019, California enacted comprehensive marketplace facilitator legislation. Many said last fall this would be an impossible feat given the…
TAKEAWAYS The Court holds that the South Dakota law satisfies the Commerce Clause “substantial nexus” requirement based on the “economic and virtual contacts” with the State. The Wayfair decision does not prohibit the retroactive application of this new standard for Commerce Clause “substantial nexus.” The decision strikes a blow to the…