The Evolution and Future of Substantial Nexus in State Taxation of Corporate Income

Download or read book The Evolution and Future of Substantial Nexus in State Taxation of Corporate Income written by Julie Roman Lackner and published by . This book was released on 2014 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proper nexus standard for state taxation of out-of-state corporations has been a contentious issue since the Supreme Court decided Quill Corp. v. North Dakota in 1992. The Court upheld a physical presence standard in that case, but numerous state courts have since affirmed economic presence standards, holding that a cor-poration does not have to have a physical presence within the taxing state to be subjected to corporate taxes in that state. This Note exam-ines the evolution of state taxation of out-of-state corporations, in-cluding some of the most recent state tax court decisions on the topic, and analyzes whether there are any overarching principles that may be gleaned from the various decisions. The Note then speculates about the consequences of the proliferation of the economic pres-ence standard and whether there is any limit to its application.