Alabama Challenges Physical Presence Nexus Requirement

Friday, June 17th, 2016

Online bill pay.

Newegg, Inc., a large online retailer, has filed an appeal in the Alabama Tax Tribunal challenging Alabama's nexus regulation. The regulation requires large out-of-state retailers to collect and remit sales tax even if they do not have a physical presence in the state.

The regulation conflicts with the U.S. Supreme Court's decision in Quill v. North Dakota, which requires that businesses have a physical presence in a state before that state can require them to collect sales tax.

The appeal could provide the U.S. Supreme Court with an opportunity to revisit Quill in light of the significant changes in online retail in recent years. The Revenue Commissioner has said that Alabama intends to "lead the charge to overturn Quill."

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

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