TEI Issues Policy Statements Regarding the Sales Taxation of Business Inputs, Trailing Nexus, and the Confidentiality of Taxpayer Information
On June 1, 2011, the Institute filed an amicus brief urging the U.S. Supreme Court to overturn a lower court decision allowing Iowa to tax corporations with no physical presence in the State, KFC Corporation v. Iowa Department of Revenue. The core issue in this case is whether the Commerce Clause of the United States Constitution prohibits a State from imposing its corporate income tax on businesses with no connection to the State other than having customers located there.
On September 2, 2010, TEI filed comments suggesting changes to proposed Washington Department of Revenue emergency regulations (WAC 458-20-19401, 458-20-19402 and 458-20-19403) interpreting recently enacted nexus and sales factor sourcing legislation. The comments were filed under the aegis of TEI's State and Local Tax Committee, whose chair is Linda Dickens; Daniel B. De Jong, TEI Tax Counsel, serves as legal staff liaison to the committee.
On October 6, 2009, TEI filed comments opposing Colorado's economic nexus regulation. TEI maintains that if the Proposed Regulation is not revised to require some physical presence in the State, it will violate controlling Commerce Clause jurisprudence and subject both taxpayers and the State to months, and even years, of uncertainty and expense.