The U.S. Congress has enacted several key pieces of legislation that limit the taxing authority of state and local governments. Key among these provisions are: (1) the Internet Tax Freedom Act, which established a moratorium on the imposition of state and local taxes that would interfere with the free flow of interstate commerce over the internet, and (2) P.L. 86-272, which prohibits states from imposing a net income tax on income derived from interstate commerce if the only business activity within the state is the solicitation of orders of tangible personal property. During this two hour seminar, the state and local tax attorneys from Hodgson Russ LLP will summarize recent developments impacting the scope of these federal protections, including recent taxpayer protests in which taxpayers have successfully argued that the Internet Tax Freedom Act preempts various state taxes, along with the Multistate Tax Commission’s (MTC) recent model language interpreting P.L. 86-272, which has the potential to drastically limit the protections of P.L. 86-272 for many internet vendors.
Instructional MethodGroup: Internet-based
NASBA Field of Study
Taxes (2 hours)