New York Supreme Court Rejects Challenge To Aggressive New York State Sales Tax Nexus Law
Growing businesses have a constant challenge in state tax law compliance. In particular, emerging companies need to be very careful when they reach out into other states to sell their products. Depending on how they "reach out" into those states, their sales efforts may cause their companies to have a "substantial nexus" with a state, allowing the state to require them to collect and remit sales taxes on sales of tangible personal property into that state. A failure to collect sales tax when required to do so can quickly amount to very significant tax liabilities. Therefore, even very early stage companies need to be extremely careful and have nexus policies in place designed to ensure compliance with state tax law, especially state sales tax collect and remit responsibilities.
The challenge of complying with state tax law seems to be growing more difficult every year as states become more and more aggressive. The latest news is that the Supreme Court of the State of New York has rejected challenges to the state's new nexus law.
You can read the opinion here. You can also read coverage of this decision in various major media outlets. Links to those stories can be found at TaxProf Blog.
