State and Local Tax Outline

42910 WordsNov 12, 2014172 Pages
Downloaded From Outline Wednesday, September 28, 2011 8:09 PM State and Local Taxation Hellerstein Fall 2011 Chapter 1 1. a. INTRODUCTION Basic Info 1. Sales and Use Tax a. USE TAX 1. Tax on storage, use or other consumption in the sate of tangible personal property. 2. Assessed upon “tax free” personal property purchased by a resident of the assessing state for use, storage, or consumption of goods in that state regardless of where the purchase too place. 3. The use tax is typically assessed at the same rate as the sales tax that would have been owed (if any) had the same goods been purchased in the state of residence. Typical "tax free" purchases that require payment of use tax include…show more content…
Ct bifurcates DP and CC analysis and says physical presence test with regards to CC in sales/ use tax area. Here there might have been DP rationale, but no CC rationale to tax. a. Due Process Argument – that there were insufficient minimum contacts between the out of state vendor and taxing state to allow the state to impose the obligation on the nonresident vendor. 1. The court said that the due process clause does not bar taxation because THERE ARE CONTACTS. There is purposeful availment. 2. Minimum contacts do NOT necessarily mean physical contacts. All there needs to be are directed activities towards the state. The validity of the tax here is related to the benefit Δ receives from access to the state. 3. Has state provided some protection, opportunities, or benefit for which it can expect a return b. Commerce Clause v. Due Process Downloaded From 1. 9. 10. 11. 12. 13. 14. b. 1. Due Process: Based on fairness, and in this case it would not be unfair to call them into court. 2. Commerce Clause: based on not burdening interstate commerce. 3. The court equates the burden on commerce to whether or not there is a physical presence. 4. Fn 8 – a few floppy diskettes to which Quill holds title seems a slender thread upon which to base nexus. Not enough 5. Under Complete Auto’s four part test, will sustain a tax against a CC challenge so as 6. tax is applied to

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