Category: Multistate Tax

Most of the conversation around state and local tax (SALT) today centers on nexus—especially after South Dakota v. Wayfair (2018) and the expansion of economic nexus rules impacting e-commerce and remote sellers. That focus makes sense… but it’s incomplete. Nexus is only one prong of the four-part test established in Complete Auto Transit v. Brady...Continue reading

In recent years, much of the discussion in state and local tax (SALT) has focused on how nexus has evolved after South Dakota v. Wayfair (2018), particularly for e-commerce businesses and remote sellers. But nexus addresses only one prong of the four-part test established in Complete Auto Transit v. Brady (1977). The other three prongs...

In my earlier blog series, I covered how nexus has evolved—especially following South Dakota v. Wayfair (2018). Much of the discussion in the SALT (State and Local Tax) world has focused on the expansion of economic nexus, particularly for e-commerce and remote sellers. But that only addresses one prong of the four-part test established in...Continue reading

This is the final installment of a 6-part series by The John Ellis Company, An Accountancy Corporation, a Long Beach, California-based CPA firm specializing in sales and use tax (SALT), multi-state tax compliance, and state and local tax consulting. This series examines the evolution of nexus under the Commerce Clause and Due Process Clause and...Continue reading

This is Part 5 of a 6-part series by The John Ellis Company, An Accountancy Corporation — On the evolution of NEXUS under the Commerce Clause and Due Process Clause. In South Dakota v. Wayfair (2018), the Supreme Court revisited Quill—and fundamentally changed the nexus standard. What Changed The Court eliminated the physical presence requirement...

This is Part 4 of a 6-part series by The John Ellis Company, An Accountancy Corporation — On the evolution of NEXUS under the Commerce Clause and Due Process Clause. In Quill Corp. v. North Dakota (1992), the Supreme Court addressed a fact pattern similar to Bellas Hess—but reached a more nuanced constitutional conclusion. The...

This is Part 3 of a 6-part series by The John Ellis Company, An Accountancy Corporation — On the evolution of NEXUS under the Commerce Clause and Due Process Clause. In Complete Auto Transit v. Brady (1977), the Supreme Court established the framework still used today to evaluate state taxes. The four-prong test requires: 1....

This is Part 2 of a 6-part series by The John Ellis Company, An Accountancy Corporation — On the evolution of NEXUS under the Commerce Clause and Due Process Clause. In National Bellas Hess (1967), the Supreme Court addressed whether a mail-order company with no in-state presence could be required to collect and remit use...

PART 1: What Is Nexus? The Constitutional Foundation This is Part 1 of a 6-part series by The John Ellis Company, An Accountancy Corporation — On the evolution of NEXUS under the Commerce Clause and Due Process Clause. Sales tax nexus is not created by the states—it originates from the U.S. Constitution. Nexus is the...Continue reading