Court case could affect sales tax paid for online purchases made pre-Wayfair in MA
Keep an eye on any online purchases you’ve made in the past several years in Massachusetts. They may end up being subject to retroactive sales and use tax pending a state Supreme Judicial Court decision.
The state’s high court has accepted an appeal request from an online retailer in a case to define what establishes the “physical presence” guidelines required to establish nexus in a state, pre-Wayfair.
Previously, the Dept. of Revenue claimed the retailer had to collect tax on purchases made by customers in Massachusetts because it placed “cookies” on their internet devices prior to purchase and also allowed them to use apps. Those cookies and apps gave the retailer physical presence in the state, the department said.
While the state’s tax appeals board sided with the retailer, saying apps and cookies didn’t establish physical presence for tax purposes, the department submitted another appeal to an appeals court. This prompted the retailer to submit the case to the higher court, and the state supreme court accepted the appeal.
We’ll keep you posted on the decision.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Personify Health
Further Reading
Many businesses are hesitant to spend big bucks on capital improvements or new equipment due to inflation, high interest rates and economic...
The outcome of the presidential race and which party will control the House and Senate is too close to call. But a handful of economic idea...
The Internal Revenue Service has extended corporate, business and individual tax deadlines out to June 17 for San Diego, Detroit and dozens...
The provision in the 2017 Tax Cuts & Jobs Act calling for a one-time tax on foreign investments survived an appeal to the Supreme Court...
The metropolitan areas where employers and employees want to settle are in flux this decade. COVID-19 accelerated the flexible on-site ...
Any business owner who paid employee salaries or health benefits during COVID-19 restrictions will be waiting a while longer for a tax cred...
