What you need to know
The year 2016 may best be remembered as a time when many fundamental issues were set up for dynamic resolution in the coming year. For example, while federal legislation on the remote seller nexus front failed to advance this year, many states took matters into their own hands; they enacted legislation and invited litigation at the state level to address how remote sellers should collect and remit sales and use tax. Courts and legislatures addressed states' ability to subject businesses with a lack of physical presence to entity-level taxes imposed by Ohio and Nevada.
These developments show consensus is building toward a judicial or congressional determination, which could come as early as next year, on the power of a state to subject out-of-state businesses to all types of taxation that may eviscerate the historic Quill physical presence standard set forth by the U.S. Supreme Court.
Read about this issue and many others in our annual review.
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