State Attorney General Says That Remote Seller Nexus Law Would Be Unconstitutional

Thursday, April 20th, 2017

Nebraska Department of Revenue.

The Nebraska Attorney General recently concluded that making remote sellers with no physical presence in the state collect and pay Nebraska sales tax would be unconstitutional.

The Nebraska legislature introduced a bill earlier this year that would require remote sellers to collect Nebraska sales tax. Sellers would have to collect the tax if (1) a seller's gross revenue in Nebraska exceeded $100,000 or (2) a seller made two hundred or more separate transactions in the state.

The Attorney General concluded that this law would be unconstitutional. According to the United States Supreme Court, states cannot require sellers with no physical presence in the state to collect sales tax. This is due to the "commerce clause" in the United States Constitution. The proposed law would require sellers with no physical presence in the state to collect tax. As a result, the Attorney General said, this law would not be constitutional.

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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.

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