(long) Out-of-town License Discussion

[Horace Greeley]

Barb,

What is the specific USSC cite ?


>   That's the test laid down by the US Supreme Court to determine
>whether a company is liable for a state's taxes.  But the court ruled
>that the mere fact of a short trade show does not create a business
>presence.
>   The court noted that most of the attendees were from out of state,
>and that many were already long-standing customers of Blue Belle.
>Thus the company didn't create a customer base in Florida as a result
>of the show.
>   THERE'S THE RUB.  The case could have gone the other way if
>Florida had proved that the show created a substantial customer base
>in the state.  And what is or isn't  "substantial," of course, is a
>subjective judgment.
>
>======
>Apparently the "substantial nexus" test applies thruout the US as
>far as state tax departments.
>
>Barb Barasa
>Ashland OR

Best.

Horace



Horace Greeley			hgreeley@leland.stanford.edu

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