Jennifer Weidler Karpchuk, left, senior counsel with Chamberlain, Hrdlicka, White, Williams & Aughtry and Ilya Lipin, right, managing director with BDO USA.
Besides the temperatures this summer, nothing has been steamier than the recent tax developments in Philadelphia. This article will look at some of the most significant developments in the last year and discuss their prospective impacts on both resident and nonresident taxpayers.
Philadelphia’s ‘Wayfair’ Response
Pursuant to previous U.S. Supreme Court case law, Quill v. North Dakota, 504 U.S. 298 (1992), physical presence was required for a state to subject a company to sales tax collection obligations. During June 2018, the U.S. Supreme Court rejected physical presence precedent when it upheld a South Dakota law that imposed economic nexus upon taxpayers who lacked any connection to the state apart from sales within the state in excess of $100,000 or 200 transactions annually, see South Dakota v. Wayfair.
