On Monday, Dec. 2nd, the U.S. Supreme Court officially denied Certiorari to Overstock.com and Amazon.com petitions seeking to overturn New York’s law requiring sales tax collection by certain Internet retailers, even if they have no physical presence.
The issue in these cases is the constitutionality of New York’s “click-through nexus” law. These types of laws are being passed in more and more states. New York’s law stands, for now, but there are certain to be challenges to other states’ remote sales tax nexus laws which may also end up in the Supreme Court. The Court’s decision now places the remote seller collection issue squarely on Congress (where it has been since the spring) with the spotlight directly on the Marketplace Fairness Act (“MFA”). Marcum will continue to monitor national and state developments in this important area.
It is because of these decisions that it is now more important than ever for businesses to address sales and use tax responsibilities on a state-by-state basis before a state makes contact.
Should you have any questions on this decision or the pending Market Place Fairness Act, contact your tax advisor within the Marcum SALT Group.
More information related to the Court Order can be found at: http://www.supremecourt.gov
More information related to the MFA can be found on our website at:
The Market Place Fairness Act - How Will It Affect Your Business? and
Marcum LLP's 2013 Year-End Tax Guide
|A special thanks to article contributor Camille Mule`, Manager, Tax & Business.|