2012 Hot Topics in State Taxation: Nexus, Apportionment Among Most Active Topics This Year


Originally published in Tax Management Weekly State Tax Report on June 8, 2012 Issue: 23, 06/08/2012. Copyright 2012 by The Bureau of National Affairs, Inc..

The past year saw marked developments in state tax law. Although participation by the United States Supreme Court was still too limited, many important developments occurred at the state level. Among the most active topics were nexus and apportionment.


Goodyear Tires, SA v. Brown

In Goodyear Tires, SA v. Brown, the U.S. Supreme Court held that a foreign corporation is not subject to general personal jurisdiction on causes of action not arising out of or related to any contacts between it and the forum state merely because other entities distribute in the forum state products placed in the stream of commerce by the defendant.1 The foreign subsidiaries of a tire manufacturer were sued in North Carolina by the parents of two boys from North Carolina who died in a bus accident outside of Paris, France. In their complaint, the parents alleged that defective tires manufactured by the foreign subsidiaries caused the deaths. The U.S. Supreme Court reversed the North Carolina courts, concluding that the foreign subsidiaries’ connections to North Carolina (i.e., allowing their products to reach North Carolina) fell ‘‘far short of the continuous and systematic general business contacts’’ necessary for North Carolina to ‘‘entertain suit against them on claims unrelated to anything that connects them to the State.’’ This case, and J. McIntyre Machinery Ltd. v. Nicastro (discussed below), could have significant implications in the state tax world.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.