Taxation and State Taxation -- 2011
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Lamtec Corp. v. Department of Revenue
(U.S. Supreme Court)
Economic nexus for states imposing business and occupation taxes
The NAM and the Council on State Taxation urged the Supreme Court to review a Washington Supreme Court ruling that is the latest in a long string of cases upholding the ability of a state to impose taxes based on the “economic presence” of a company. Typically, the law has required that a company must have some physical presence in the state before that state has tax jurisdiction, but this case involves an attempt to impose a business and occupation tax using an expanded standard of jurisdiction. We urged the Court to review the case because laws like these are often ambiguous, vary widely from state to state, and are highly burdensome for taxpayers doing business in multiple jurisdictions. Businesses that cannot predict their tax liabilities cannot make meaningful disclosures in required financial statements for investors.
On October 3, 2011, the Court declined to review this appeal.
Related Documents:
NAM brief (June 16, 2011)
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