- How States Are Trying New Strategies to Collect Sales Tax
- October 19, 2017 | Authors: Christopher Beaudro; Stephanie T. Do
- Law Firms: Eversheds Sutherland (US) LLP - Washington Office; Eversheds Sutherland (US) LLP - Atlanta Office
States historically have had one major impediment to their ability to collect sales tax—the decision in Quill Corporation v. North Dakota to uphold a physical presence test standard for determining nexus. Since the Quill decision, states have applied various approaches to limit or even eliminate Quill’s physical presence nexus standard. These approaches included lobbying Congress to provide federal legislation that would redefine nexus, enacting state “click-through” nexus statutes and taking aggressive audit positions that limit the applicability of physical presence nexus.In their article for Law360, Eversheds Sutherland attorneys Carley Roberts, Christopher Beaudro and Stephanie Do discuss that states are employing new strategies aimed at requiring online marketplaces to collect sales tax or comply with certain reporting requirements.