Recent News Articles


Washington Revenue Official: Objective is to Shift Tax Burden Out-of-State, Tax Foundation's Tax Policy Blog, Posted on May 4, 2010 by Joseph Henchman
After decades of resisting, in 1977 the U.S. Supreme Court gave in and allowed states to impose taxes on interstate commerce. Since before the Constitution, this had been out of bounds due to the risk that states would shift tax burdens out-of-state and harm the national economy. Consequently, the Supreme Court warned that state taxes on interstate activity must be fairly apportioned, cannot discriminate on out-of-state taxpayers, must be related to provided services, and have nexus.

House Panel Queries State, Local Tax Issues; State, County Officials Call Flexibility Vital, By Jeff Day (Daily Tax Report, April 16, 2010)

Range of Groups Submit Statement in favor of Business Activity Nexus Bill, By Alison Bennett (Daily Tax Report, February 9, 2010)

Stakeholders Debate Physical Presence As Continuing Standard for State Taxes, By Alison Bennett (Daily Tax Report, February 5, 2010)

Back to the Future: The Hope for Enactment of BATSA Legislation, by Marjorie Gell (Tax Analysts, July 20, 2009)

US Supreme Court Rejects State Tax Challenge, by Glen Shapiro (LawAndTax-News.com, June 24, 2009)
The US Supreme Court stated in a decision issued on June 21 that it would not hear an appeal by Capital One Bank against a Massachusetts revenue authority decision to tax the company based on the amount of business it conducted in the state, regardless of the fact that the company had no 'physical presence.'

High Court Denies Review to Three Tax Cases, Including Substantial Nexus Test Challenges, by J.P. Finet (Daily Tax Report, June 23, 2009)
The U.S. Supreme Court June 22 declined to review three tax cases, including appeals of two Massachusetts Supreme Court rulings that upheld the constitutionality of the state's income-based excise taxes on out-of-state entities based on a substantial nexus test.

Chasing Tax Revenue Across State Lines, by Jessica Silver-Greenberg (Business Week, May 21, 2009)
Cash-starved states like Massachusetts are going after businesses that profit from their residents but are headquartered outside their borders

Economic Nexus: Right or Wrong, by Peter L. Faber (Taxes--The Tax Magazine, March 2009) (.pdf)
Peter L. Fabert discusses whether states can tax an entity that has economic contacts with the state but has no physical presence in the state

Virginia Reps Introduce Business Activity Tax Nexus Bill, by John Buhl (Tax Analysts, February 18, 2009) (.doc)