Top State And Local Tax Cases Of 2022

December 21, 2022

Richard Jones was quoted in the article "Top State And Local Tax Cases Of 2022," published by Law360 [sub. req.]. 

Speaking on the case of Online Merchants Guild v. C. Daniel Hassell, where the Pennsylvania Commonwealth Court blocked the Pennsylvania Department of Revenue's attempt to collect back taxes from third-party sellers participating in an Amazon sellers program, Rich said it was refreshing to see the court "acknowledge that any kind of physical presence in a state is not per se substantial nexus, and that you still need to consider the purposeful use or control over that property."

Another case, VAS Holdings & Investments v. Commissioner, in which the Massachusetts Supreme Judicial Court determined that the state could not impose approximately $2.6 million in tax on out-of-state S corporation VAS Holdings & Investments, Rich said he believed other states would look to the case "if the question were to come up as to whether invested apportionment is a permissible means of apportioning income and in doing so, sidestepping the unitary business principle." He also said that the topic may be something the U.S. Supreme Court revisits again, given that the state's highest court has determined that the unitary business principle isn't the sole method for determining apportionable income.

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