Nexus News: U.S. Supreme Court, Federal and State Nexus Developments

Finnigan overruled Joyce, holding that all sales into the taxing state by all members of the unitary group with nexus to the state belong in the sales factor numerator, irrespective ot whether individual members of the group have nexus with the state.8 The MTC working group previously submitted a draft to the Uniformity Committee at MTC's Spring Meetings in May in which it utilized a Utah-style "single entity" group approach and allowed for broad sharing of tax attributes, including credits and net operating loss carryovers. North Carolina Proposed Income Tax Nexus Statute Vetoed The North Carolina Senate passed a budget bill (H.B. 966) that among its provisions would make three major changes that the state's nexus standards: expand the State's "engaged in business" definition to include sales via mobile phone applications; adopt marketplace facilitator collection and remittance provisions imposed at an economic nexus threshold of $100,000 in sales or 200 transactions; and exclude certain out-of-state businesses and employees from certain taxes, fees, and business registration requirements ordinarily imposed on in-state businesses when temporarily performing work or services on critical infrastructure in the state during a declared disaster or emergency as well as reduce the franchise tax rate; and implement market-based sourcing for income tax apportionment sales factor purposes. [...]we are seeing a spate of legislation to codify the economic presence nexus standards and expand required collectors. Act 360 fixes the effective date to be July 1, 2019, and allows the Commission to work as the single collector for the state. [...]the central collection system is fully implemented, remote sellers may use the direct marketers return under La.