In this issue:

- Delivered by Independent Contractors, Undelivered by P.L. 86-272: Order Fulfillment Activities Subject Out-of-State Seller to New York Corporation Franchise Tax

- Everything’s Bigger in Texas, Even the Burden of Proof

- Publish This: Unpublished Michigan Case Rejects Department’s Estimated Assessment in Favor of Statutory COP Sourcing Method

- Oregon’s Definition of Business Income Still Less Than Crystal Clear

- U.S. Bankruptcy Court Puts the W[H]AM-O on Oregon’s Joint and Several Liability Claim for Corporate Excise Taxes on Bankrupt WAMU Parent

- Division Imposes Penalties on UPS, New Jersey Appellate Court Returns to Sender

- Pass the Kleenex: Massachusetts Appeals Court Affirms Appellate Tax Board’s Decision in Kimberly-Clark Case

- More News is Bad News for Publisher in Vermont: Newspaper Coupon Books Not Exempt from Sales and Use Tax

- A “Wynne” for Maryland Taxpayers: Double Taxation of Pass-Through Income Ruled Unconstitutional

- In Virginia, Arm’s-Length Still Leads to Overreach

- Cracking the Code: No Nexus in Utah for Internet Gift Code Seller

- “Shell” Game? Taxpayer Operating Multi-Service Internet Data Center Entitled to New York State Sales and Use Tax Exemption for Purchases of Tangible Personal Property

- A Federal Contractor, the Missouri DOR and a Rabbi Trust Walk Into a Bar: Taxpayer Has Last Laugh in Missouri Nonbusiness Income Ruling

- Excerpt from "Publish This: Unpublished Michigan Case Rejects Department’s Estimated Assessment in Favor of Statutory COP Sourcing Method":

The Michigan Court of Appeals ruled in two consolidated cases that the state’s estimated corporate income tax assessments were invalid because the taxpayers’ sales factors were improperly calculated using an alternative population-based formula rather than the statutory costs of performance (COP) formula. The two taxpayers were out-of-state book publishers that entered into a joint venture to develop, market and sell books in Michigan from locations outside of the state. The court upheld the lower court’s determination that affidavits submitted by the taxpayer sufficiently established the sourcing of all of the developing publisher’s service revenue outside of Michigan under the COP sourcing method.