Taxing jurisdictions (e.g., states) are passing legislation requiring out-of-state entities without physical presence in the state to collect sales/use taxes on interstate sales.

Identify a few states that have recently taken legislative measures against out-of-state entities in the sales/use tax context. Critically analyze the issue with analysis that may include, for example: 

(i) analysis of the statutory language in a given state or states; 

(ii) intent of the state; 

(iii) compliance issues for out-of-state entity; 

(iv) impact on out-of-state entity; 

(v) policy considerations; 

(vi) considerations as to whether out-of-state entity should comply; 

(vii) options for out-of-state entity; 

(viii) effect on business and commerce; 

(ix) impact from tax administration standpoint; 

(x) impact on consumers; 

(xi) considerations with respect to U.S. Supreme Court decision in Wayfair; 

(xii) considerations with respect to Congress; 

(xiii) whether such types of statutes are constitutional under Due Process and Commerce Clauses and in light of Wayfair;

(xiv) how do you see this issue ultimately being resolved (e.g., will Congress step in?).

Answer rating: 100% (QA)

States Recently Implementing Measures Against OutofState Entities in SalesUse Tax Context Arizona SB1457 2023 requires remote sellers with over 150000 in Arizona sales or 200 transactions to collect a... View the full answer