Amway Corp. v. Director of Revenue , 794 S.W.2d 666 (1990)

Amway Corp. v. Director of Revenue


The Missouri Supreme Court held that Missouri could impose its net income tax on Amway's sale of distributorships within the state. Amway contended that federal law prohibits the imposition of state income taxes on revenue derived from sales made by sales people in the state and delivered to the customer from outside the state. The Court held that the federal prohibition on state taxes applied only to tangible personal property and that an Amway distributorship did not fall into that category. Because the federal statute did not protect it, Amway was found to be subject to state net income tax on revenue from the sale of Amway distributorships.

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Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates, Tax Updates

Reference Info:State, 8th Circuit, Missouri | United States

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.

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