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In law school, we learned that nexus is the most important factor in determining whether items may be properly taxed for purposes of sales tax. The nexus requirement for the imposition of sales tax for mail order and Internet orders has also been affirmed in the U.S. Supreme Court in National Bellas Hess v. Illinois and Quill v. North Dakota . This idea of nexus -- increasingly difficult to prove in a paperless, virtual society -- has resulted in millions of dollars of forgone revenue in many states, such as Pennsylvania, that have chosen not to pursue sales tax on Internet sales. But that might be about to change.
June 24, 2008 at 05:05 AM
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The original version of this story was published on Law.Com
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