Developments in Multistate Taxation -- November 2013


U.S. Supreme Court -

On August 23, 2013, an online retailer filed a petition for a writ of certiorari with the U.S. Supreme Court seeking review of the New York Court of Appeals’ determination that a New York statute that subjects online retailers without physical presence in the state to New York sales and compensating use taxes does not, on its face, violate the Due Process or Commerce Clauses of the U.S. Constitution. The New York Court of Appeals found that an online retailer may be presumed to have nexus in the state when a link to the retailer’s website is hosted on the website of a New York resident who is compensated on a commission basis.

U.S. Court of Appeals for the Tenth Circuit -

The U.S. Court of Appeals for the Tenth Circuit held that the Tax Injunction Act divested the U.S. District Court for the District of Colorado of jurisdiction over a marketing association’s Commerce Clause claims and that it, therefore, had no jurisdiction to reach the merits of the Colorado Department of Revenue’s appeal. The district court had granted a permanent injunction against the enforcement of Colorado’s statute imposing a use tax reporting requirement on out-of-state retailers who do not collect sales tax and had held that the statute violates the Commerce Clause of the U.S. Constitution because it: (i) directly regulates and discriminates against out-of-state retailers and interstate commerce; and (ii) imposes an undue burden on interstate commerce. The Tenth Circuit remanded the case to the district court to dismiss the marketing association’s Commerce Clause claims for lack of jurisdiction and to dissolve the

permanent injunction.

Originally published in Corporate Business Taxation Monthly on November 11, 2013.

Please see full alert below for more information.

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

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

Written by:


Morrison & Foerster LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*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. Or, sign up using your email address.